Impact of Digitalization for MSME Actors in the Era of Adapting New Habits
Abstract
Impact is a secondary effect brought on by the adoption of a plan or strategy. The Indonesian economy has been significantly impacted by the COVID-19 outbreak. Moreover, MSMEs are among the most severely impacted economic sectors. One of the regencies with a sizable number of MSMEs is Purbalingga. People are being pushed to adjust to rather rapid digital advancements as a result of the COVID-19 epidemic. Therefore, the study aims to examine and describe in detail how digitalization has affected MSME actors in the age of forming new habits, particularly in the Purbalingga Regency. This study used a qualitative research design with procedures for collecting data from in-depth interviews, observations, and documentation. Purposive sampling was used to choose research participants, and interactive analysis was used to analyze the data. The findings of this study suggest that MSMEs in Purbalingga Regency have been more negatively impacted by the COVID-19 epidemic than other groups. For instance, there has been a sharp decline in MSME incomes and a rise in layoffs as a result of MSMEs’ inability to pay for their personnel. The Purbalingga Regency government has implemented e-commerce, specifically through ”Tuka Tuku Purbalingga,” as one of its strategies for saving MSMEs. However, the MSME actors in Purbalingga Regency have faced new challenges as a result of digitalization. This is because some MSME actors in Purbalingga Regency continued to face technical gaps and restricted internet access.
Keywords: impact, digitalization, MSMEs
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