THE IMPACT OF HUMAN, SOCIAL AND FINANCIAL CAPITAL ON THE SUSTAINABILITY OF MSMEs BUSINESSES IN THE DIGITAL ERA
Keywords:
Human Capital, Social Capital, Financial Capital, MSMEs, IndonesiaAbstract
MSMEs are a crucial part of the Indonesian economy, contributing to 61.07% of the country's GDP. However, the COVID-19 pandemic significantly affected these businesses, with restrictions on community activities causing significant economic losses. The majority of MSMEs are micro-businesses, with 98.68% of the workforce. In 2019, the number of micro-businesses reached 64.6 million, with 798.9 thousand units being small businesses and 65 thousand units being medium businesses. The pandemic has significantly impacted the continuity of these businesses. A study analyzing the impact of financial, social, and human capital on the continuity of micro and small enterprises in Medan during COVID-19 found that financial access, trust in networks, Internal social capital, and External social capital significantly influence the survival of MSEs, while human capital does not. This study can help MSMEs develop their businesses and become more resilient in the face of disruptionsReferences
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