as a presenter at the 17th IRSA Internastional Confrence

Abstract

Abstract Supply and demand experienced a shock during the Covid-19 pandemic. As a result of this phenomenon, the Samarinda City Government assists Small and Medium Enterprises (MSMEs) entrepreneurs in Samarinda City. They are significantly affected in various business fields, including the food industry. At first, it was believed that this food business was not so impactful because it was a primary need, especially for MSMEs. They have an excellent absorbing capacity against changes in their business environment. Some of the food industries affected are extraordinary, one of which is the "Amplang" (Traditional Food) business. The food industry's impact also impacts the decline of the tourism sector, especially MICE (Meeting, Incentive, Convention, and Exhibition) activities. One of the economic recovery efforts is to encourage the MSME sector, which contributes to the economy. This paper examines the performance of MSMEs affected by the Covid-19 pandemic and the Government's efforts to restore it. Of the 158,624 Samarinda Micro Small and Medium Enterprises (MSMEs) affected by Covid-19, 42,805 MSME actors received Micro Business Productive Assistance (BPUM). Research related to small and medium enterprises in maintaining economic stability with various strategies strongly supports sustainable efforts in Samarinda City, which is one way to preserve local culture in the food business. In the economic field of economic development of processed food business economic activity that is cultivated and developed, there needs to be innovation and knowledge sharing in human resource management carried out to effectively and efficiently increase income in profitable businesses. This study was conducted on 350 processed the "Amplang" (Traditional Food) business actors who received Micro Business Productive Assistance (BPUM) from the Samarinda City Government. Aim to keep the business sustainable by implementing innovation and knowledge sharing activities as economic activities for resource management, maintaining better community and business food security, and positively increasing profitability. Research is conducted quantitatively and in analysis with the WarpPLS software program. The results of the study prove that; The Ability to Absorb has a positive and significant relationship to the Performance of MSMEs (β = 0.481, p<0.001), and Micro Business Productive Assistance (BPUM) also has a positive and significant influence on the Performance of MSMEs (β = 0.361, p<0.001). There is a positive and significant role of BPUM Moderation (β = 0.163, p<0.001) on the relationship between Absorp Capacity and MSME Performance. Theoretical implications and Practical Implications of this study manage existing resources and synergize MSME economic activities in helping and supporting the community's local economy (home industry) during the pandemic so that MSME businesses can be sustainable. This research explains how the current state of MSMEs that are experiencing changes in the business environment due to the pandemic and how MSME entrepreneurs can maintain their business by synergizing with the Government. Keywords: Pandemic Impact, Absorp Capacity, Government Assistance, MSMEs Performance.