Corona Virus Impacts on Small Medium Enterprise toward

Generation Z Performance

By

Aldrich Waldy Phoan

014201800068

Business Management
 CHAPTER 1

INTRODUCTION

1.1 Background

World right now is being broken by the outbreak of a new virus pandemic called
coronavirus 19, which has been discovered at Wuhan, China. As of February 21, the global
death surpassed 2 million with total cases around 112 million. CoronaVirus is a virus that
attack the respiratory system with several symptoms, even though there are some people that
have different symptoms, but there are several symptoms or signs that are very common
include fever, coughing and breathing difficulties, for the most severe case it can cause
pneumonia, multiple organ failure and can lead to death. People can get infected by other
people or also can infect other people within one to 14 days, it happens before the common
signs appear. Corona Virus or scientific language we call it as severe acute respiratory
syndrome coronavirus 2 (SARS-CoV-2) has attacked so many sectors, not only the health
sector but also the other sectors like economic (tourism and etc.).

According to Sugianto Danang (2020), private consumption, which accounts for

nearly 60% of the national economic movement, is certain to experience a contraction. This
happen not only just at Indonesia but right now every country (global) stated that they have
decreasing in global economic growth, this means that every company have also struggling
due to covid-19, it also include the small medium enterprise, there are several meaning SME
according to the country which means that every country have their own meaning for the
SME, but for Indonesia SME is small activities that done by several people in terms to
survive in this world with protective law to prevent unfair competition business, a small or
medium enterprise that have net worth maximum 200,000,000 rupiah or below that will be
called as SME in Indonesia. As we know that in the next 10 years the generation z will exist
more in the world, that’s why we must know the characteristic of generation z, Harber J
(2012), found that the generation Z is the most ethnically diverse and technologically
sophisticated generation, they have straight way of communicating and more like do it
yourself generation.
1.2 Problem Identification

Although there are many impacts of Covid-19 towards economic sectors, studies on
Generation Z attitudes toward the pandemic are scarcely conducted. In this case, the fragility
of the SMEs toward Generation Z is often assessed from business indices available from
national statistics (Al-Fadly, 2020). As a result, it's critical to learn about their attitudes and
preferences, particularly in these uncertain times.

1.3 Research Questions

1. What impact does the corona virus have on Small Medium Enterprises?

2. What are the most effective strategies to improve income of Small Medium Enterprises?

3. What is the impact of Generation z performance toward Small Medium Enterprises in the
pandemic era?

1.4 Research Objectives

1. To identify the impact of coronavirus to the Small Medium Enterprises

2. To identify the most effective strategies to counter pandemic era or even in the near future

3. To identify impact of generation z based on their characteristics on how they think and act

1.5 Significance of the Study

The scarcity of information of this educational product defects will be targeted for:

1. University: the result of this study may be used as references and additional literature for
international business fields to study.

2. Future research: the result can be used as additional data and references to compare and to
complete future research relevant fields of study.

3. Makassar Small Medium Enterprise: the result can be used as a reference for planning
new tactics to overcome pandemic situations that will happen in the future.
 CHAPTER II

LITERATURE REVIEW

2.1 Literature Review

2.1.1 Corona Virus

The first case was discovered in Wuhan in December of this year. It was dubbed
Corona Virus-19 by some, and (Susilawati et al., 2020) stated that the increased cases of
COVID-19 had a negative impact on the global economy, including Indonesia. The UN-
declared COVID-19 pandemic has ramifications for transportation, tourism, commerce,
health, and other industries. Various countries have adopted a "lockdown" approach to
prevent the spread of disease. Various countries have adopted a "lockdown" strategy in order
to avoid the spread of covid-19, which has hampered economic activity and placed pressure
on potential global economic development, including Indonesia's. The government
encourages the Ministry and Agencies (K/L), as well as local governments, to increase
spending in the first quarter of 2020. This was done to relieve the strain on Indonesia's
economy caused by the Covid-19 pandemic and a drop in commodity prices (Kementerian
Keuangan RI, 2020).

2.1.2 Small Medium Enterprise

A business that plays a critical role in the economy, small-medium enterprise or called
as SME is a business that the employer is below certain limitations have been specifying by
its country, Even though they are small businesses, their growth is influenced by a number of
factors, including individual characteristics, organizational characteristics, relationships, and
environmental characteristics, as well as strategy and planning. (Street & Cameron, 2007). In
Indonesia, for there are some criteria for the SMEs themselves, it is determined by all the
assets and workers that the company has.

2.1.3 Generation Z
According to Waterworth (2013), Generation Z is determined to be highly connected,
living in an era of high-tech communication, technology-driven lifestyles, and prolific use of
 social media. They have individual ways of communicating and social media is a vital part of
their lives. Also more realistic about their work expectation and more positive about the
future. However, in generation z, they are more nervous in terms of executing the idea even
though they have a trillion ideas but they are scared to execute it.

2.2 Theoretical Framework

Independent Variables

Dependent Variables
Corona Virus (X1)
Small Medium Enterprises (Y)
Generation Z (X2)

Figure 2 Theoretical Framework (Constructed by Aldrich Waldy Phoan)

2.3 Previous Study
Table 2.3 Previous Study

No. Authors, Year Published & Title Variables Result

1. Emergent This research concludes that how these abruptly emergent changes
1. (Kniffin et al., 2020) Changes in unfold is important for practitioners who are chart-in paths forward to
Work Practices address (e.g., with new interventions) The needs of vulnerable
While
“COVID-19 and the Workplace: Implications, Issues, categories of employees.
2. Economic
and Insights for Future Research and Action” and Social-
Psychological
Impacts
3. Moderating
Factors

2. (Fitriasari, F. 2020) 1. Business This research concludes that The impact of beliefs about the virus is
Model Canva that consumers care or pay attention to the food products they choose,
“How do Small and Medium Enterprise (SME) 2. Business concerning the country of origin of the food producers they eat, and
survive the COVID-19 outbreak?” Resilience
also food ingredients.

1. MSME This research concludes that according to the 282 SMEs the business
3. (Milzam et al., 2020) 2. Sales section that has the greatest reduction in revenue sales is fashion
 Revenue business in Pekalongan City

“CoronaVirus Pandemic Impact on Sales Revenue of

Micro Small and Medium Enterprises (MSMEs) in
Pekalongan City”

1. Poverty This research concludes that after covid-19 Indonesia poverty estimates
4. (Suryahadi et al., 2020) 2. Transmission will increase 12.4 % that will make Indonesia needs to put in place
Mechanism social protection program to assists the new poor in addition to the
3. Expenditure existing poor
“The Impact of COVID-19 Outbreak on Poverty: An Shock
Estimation for Indonesia (Draft)”

1. SME To seek SMEs’ owner thoughts and feelings on the impacts of

5. (Che Omar et al., 2020) 2. Strategies Malaysian Covid-19 MCO on their business activities and understands
business the short- term survival strategies in line with the resource-based
perspective.
“The impact of Covid-19 Movement Control Order
on SMEs’ businesses
and survival strategies”

6. (Prihatiningtias & Wardhani, 2021) 1. SME To give empirical evidence about how important SMEs utilize
2. technology on a daily basis. By utilizing cloud based point of sale to
“Understanding the effect of sustained use of cloud- Organizational
based point of sales on SMEs performance during Performance their business, they will improve their business performance, especially
covid-19 pandemic” 3. Cloud-Based on their operational performance, which could result in their revenues
Point of Sales
4. Technological and meet customer preferences and needs.
Continuance
Theory

7. (Muditomo & Wahyudi, 2021)
“Conceptual Model for Sme Digital Transformation
During the Covid-19 Pandemic Time in Indonesia: R-
Digital Transformation Model”
1. Digital The main trigger for DT UKM is the external driver, not many internal
Transformation drivers have been found, especially during the COVID-19 pandemic.
2. Strategic what is done is still reactive in nature and tends to only follow the steps
Imperative of the transformation of other actors so as not to create a uniqueness of
the said SMEs which will result in the loss of opportunities to have a
competitive advantage over competitors; (2) In general, the
implementers of DT UKM have set a strategic imperative for their
decision to carry out digital transformation, but have not set a
measurable milestones so that the digital transformation carried out
cannot be measured the level of success; (3) DT which is done in
general is to change some of the company's operations to digital, this
shows the low digital maturity of SMEs in Indonesia today.

8. (Irawan, 2020) 1. Company The results of the study found that to face the new normal era, SMEs
Strategic have challenges such as the ability of human resources, understanding
2. Recruiting of information technology, and business model transformation.
“Challenges and Opportunities for Small and Medium
3. Human
Enterprises in Eastern Indonesia in Facing the
Resources
COVID-19 Pandemic and the New Normal Era”

9. (Hadi, 2020) 1. Tourism The result found that It is necessary for the
2. Customer government of Yogyakarta city and village officials to make policies to
Relationship encourage development to accelerate the transformation
“Revitalization Strategy for Small and Medium
towards the post Covid-19 stabilization phase
Enterprises after CoronaVirus Disease Pandemic
(Covid-19) in Yogyakarta”

10. (Hidayat et al., 2020) 1. Government This study proves a positive and significant relationship between
Support entrepreneurship personality and crisis management. There Is no
2. Technology significant relationship between utilizing technology toward crisis
“actors Influencing Resilience of Micro Small and
Utilization management. There is a positive and significant relationship between
Medium Entrepreneur (MSME) during COVID 19
3. Entrepreneur government supports toward crisis management.
Outbreak in South Sulawesi Province Indonesia”
Characteristic
2.4 Research Gap

Currently, so many issues regarding corona virus especially in SME topics, According
to (Milzam et al., 2020) sales revenue become one of the important thing to the SME salary,
as we know that every people needs some of cash to survive in this world even at work
(Kniffin et al., 2020) found that emergent changes because of the pandemic is difficult to
adapt and very important to have a solution on it. As right now the world is evolving
therefore (Muditomo & Wahyudi, 2021) suggest that using digital technology transforming
from traditional to digital technology where digital is everywhere in the whole world. Many
studies have investigated on the impact covid-19 to the SME performance. However, the
majority of them only told about the theory and general knowledge about how to avoid
bankruptcy or surviving in the pandemic. But none of them explore more and get off the field
to help the SME especially in Makassar, for that reason the researcher aims to explore more
and help the SME’s in Makassar to counter the problem as the Covid-19 already been
announced as without end virus that always be appear in the community itself, thus the
research question would be 1) What impact does the corona virus have on Small Medium
Enterprises? 2) What are the most effective strategies to improve income of Small Medium
Enterprises? And 3) What is the impact of Generation z performance toward Small Medium
Enterprises in the pandemic era?

CHAPTER III
METHODOLOGY

3.1 Research Design

3.1.1 Research Framework
 Figure 3.1 Research Framework
(Source: conducted by researcher)
This research will use quantitative methods based on the data in the form of questionnaires
and surveys.

3.1.2 Variable Identification

3.1.2.1 Dependent Variable
(McLeod, 2019) The dependent variable is the variable being tested and
measured in an experiment, and is 'dependent' on the independent variable. An
example of a dependent variable is depression symptoms, which depends on the
independent variable (type of therapy).
3.1.2.1 Independent Variable
The independent variable is the variable the experimenter manipulates or
changes, and is assumed to have a direct effect on the dependent variable. (McLeod,
2019)
3.2 Sampling Plan
3.2.1 Population
Business Industry was chosen as the object of this research especially Small
Medium Enterprise. The researcher was interested in the Small Medium Enterprise
because the most damaged in the industry other than health sector is business sector
therefore the researcher choose Small Medium Enterprise specially in Makassar or
local area
3.2.2 Sampling Technique
In this research, the researcher will use non-sampling where not every
individual has a chance to participate, the research will use Purposive sampling to
complete the researcher research
3.2.3 Sample Size
The researcher will use Sloven’s Formula to determine the sample size, the
formula will be:
 n=N1+Ne2
Figure 3.2.3 Sloven’s Formula
Where n = sample size desired;
N = Population size; and
e = Desired margin or Sampling error
3.3 Method of Data Collection
Short Interviews and Questionnaires will be the method of the researcher to collect
the data
3.3.1 Data Source
This research also will use Secondary data that will be obtain not only
from the questionnaire but from previous research that related to research topic or any
other media to achieve the research purpose.
3.4 Method of Data Analysis
In this research, the researcher will use descriptive analysis including percentage and
mean and mode to complete the objective of the research

References

Al-Fadly, A. (2020). Impact of covid-19 on smes and employment. Entrepreneurship and

Sustainability Issues, 8(2), 629–648. https://doi.org/10.9770/jesi.2020.8.2(38)

Djalante, R., Lassa, J., Setiamarga, D., Sudjatma, A., Indrawan, M., Haryanto, B., Mahfud, C., Sinapoy,
M. S., Djalante, S., Rafliana, I., Gunawan, L. A., Surtiari, G. A. K., & Warsilah, H. (2020). Review
and analysis of current responses to COVID-19 in Indonesia: Period of January to March 2020.
Progress in Disaster Science, 6, 100091. https://doi.org/10.1016/j.pdisas.2020.100091

Harber J. (2011).Generations in the Workplace: Similarities and Differences. Institute for emerging
issues. (2015). Investing in Gen Z. Retrieved from http://iei.ncsu.edu/emerging-issues/ongoing-
programs/generation-z/

Kniffin, K. M., Narayanan, J., Anseel, F., Antonakis, J., Ashford, S. P., Bakker, A. B., Bamberger, P.,
Bapuji, H., Bhave, D. P., Choi, V. K., Creary, S. J., Demerouti, E., Flynn, F. J., Gelfand, M. J., Greer,
L. L., Johns, G., Kesebir, S., Klein, P. G., Lee, S. Y., … van Vugt, M. (2020). COVID-19 and the
Workplace: Implications, Issues, and Insights for Future Research and Action. American
Psychologist. https://doi.org/10.1037/amp0000716
McLeod, S. (2019). Independent and Dependent Variables
Definitions & Examples | Simply Psychology | Simply Psychology. Simplypsychology.
https://www.simplypsychology.org/variables.html
Milzam, M., Mahardika, A., & Amalia, R. (2020). Corona Virus Pandemic Impact on Sales Revenue of
Micro Small and Medium Enterprises (MSMEs) in Pekalongan City. Journal of Vocational
Studies on Applied Research, 2(1), 7–10. http://dx.doi.org/10.14710/jvsar.2.1.2020.7-10]
Muditomo, A., & Wahyudi, I. (2021). Conceptual Model for Sme Digital Transformation During the
Covid-19 Pandemic Time in Indonesia: R-Digital Transformation Model. BASKARA : Journal of
Business and Entrepreneurship, 3(1), 13. https://doi.org/10.24853/baskara.3.1.13-24

Street, C.T and Cameron, A.F. External Relationships and the Small Business: A Review of Small
Business Alliance and Network Research, Journal of Small Business Management, 45(2), 2007.
Sugianto, D. (2020). Begini Virus Corona Lumpuhkan Ekonomi RI. Financedetik.Com.
https://finance.detik.com/berita-ekonomi-bisnis/d-4957376/begini-virus-corona-lumpuhkan-
ekonomi-ri
Susilawati, S., Falefi, R., & Purwoko, A. (2020). Impact of COVID-19’s Pandemic on the Economy of
Indonesia. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities
and Social Sciences, 3(2), 1147–1156. https://doi.org/10.33258/birci.v3i2.954
Waterworth, N. (2013). Generation X, Generation Y, Generation Z, and the Baby Boomers. Talented
Heads, IX(2804), 2804–2812. http://www.talentedheads.com/2013/04/09/generation-
confused/