Effect of Human Capital, Social Capital, and Financial Capital on SME Survival in Digital Era Study in DKI Jakarta
Meliza (a*), Ruslan Prijadi (b)

University of Indonesia

Abstract

SMEs are the most important pillar in the Indonesian economy. Based on data, the number of SMEs in 2018 reached 64.2 million with a contribution to GDP of 61.07% or worth 8,573.89 trillion rupiah. In 2019 the COVID-19 pandemic occurred, restrictions on community activities as an effort to deal with the COVID-19 pandemic had caused significant economic losses nationally (Hadiwardoyo, 2020). Small businesses are among the hardest hit by the COVID-19 crisis, many are closing their businesses temporarily, and furthermore facing cash flow constraints (Baker & Judge, 2020). Based on BPS data, the contribution to GDP in 2020 decreased by 23% on an annual basis from 60.3% to 37.3%. The Covid-19 pandemic has had a major impact on the business continuity of Micro, Small business. If we do not know the factors that affect business survival, SME business actors will not know for sure such as the importance of the role of SME owners, access to finance, having strong and good social capital with customers, suppliers, and closest colleagues such as family or friends, the importance of knowing market information that is useful for SME owners in setting strategies to survive and still profit from the business.
This study analyze the impact financial, social, and human capital influences the survival of SME in DKI Jakarta during Covid-19 by examining access to finance, trust in networks, networks ties, experience and education as predictors. Online structure questionnaire has been used to collect the data from 150 micro and small enterprise Owners in DKI Jakarta and the data was analyzed through correlation analysis and regression using IBM SPSS 26 software. The results revealed that access to finance, trust in networks, networks ties, experience and education affect SMEs survival. This study is considered useful for SMEs in DKI Jakarta to develop their own businesses by focusing on the main factors that affect the lives of SMEs.

Keywords: SME Survival- Financial Social, Human Capital, social Capital, Entrepreneurship

Topic: Entrepreneurship