Universitas Indonesia Conferences, The Seventh International Conference on Strategic and Global Studies 2023

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The Impact of Joining into the Marketplace on Business Escalation for MSMEs in DKI Jakarta during Covid-19 Pandemic
Chotib Hasan, Elisabeth Ratu Rante Allo, Beti Nurbaiti

Last modified: 2023-05-05

Abstract


The Covid-19 pandemic that has hit Indonesia, especially DKI Jakarta Province, since the beginning of 2020 has had an extraordinary impact on the sustainability of the business world, especially micro, small and medium enterprises in DKI Jakarta. As an effort to spur the development and growth of MSME actors, including expanding market reach, the utilization and application of digital media is an effective and efficient alternative. This research aims to prove that by joining MSME actors in DKI Jakarta into the marketplace can help them escalate their business amid the Covid-19 pandemic. This study uses the Ordered Logit Model (OLM) method in analyzing marketplace variables for the escalation of MSME actors. This method applies the dependent variable as a stratified qualitative discrete variable which is divided into three levels, namely: High Escalation, Medium Escalation, and Low Escalation. This modeling also involves other variables such as business license ownership, product type, business ownership status, training experience, and business partnerships. The data is sourced from micro data exploration results from the Jakpreneur Quality Escalation survey in 2022 which was held by the Department of Industry, Trade, Cooperatives, Small and Medium Enterprises (DPPKUKM) of DKI Jakarta Province. The results of this study are expected to be input for strategic planning in an effort to increase the escalation of MSME actors in DKI Jakarta.

 

Key Words: Business Escalation, Marketplace, Ordered Logit Model, MSME Actors