No doubt 2020 has been a challenging year for micro, small and medium enterprises (MSMEs), and no one has felt this more than women entrepreneurs trying to keep their businesses afloat. According to bookkeeping app BukuWarung, Indonesian MSMEs that sell food and beverages faced a 70 to 80 percent revenue decline at the beginning of the pandemic, when social restrictions and physical distancing policies were put in place for the first time.
The findings also recognized that compared to their male peers, women entrepreneurs have a harder time accessing facilities and resources.
However, with digitalization, women MSMEs have been able to leverage their business amid the COVID-19 pandemic.
UN Women Representative and Liaison to ASEAN Jamshed Kazi said Indonesian women played a significant role and had been contributing to the economy as the owners and entrepreneurs in various MSMEs.
“With limited resources, it is important to use the combination of data and innovation with specific policy measures to ensure that the National Economic Recovery Program (PEN) includes targeted support for women-owned small and micro businesses. We believe this will be key to ensuring Indonesia’s economic resilience and recovery in 2021,” Kazi said.
Technological adaptation helps keep businesses afloat
Recently, UN Women, through its report “Leveraging Digitalization to Cope with COVID-19: An Indonesian Case Study on Women-Owned Small Businesses”, acknowledged how digital platforms, such as the Indonesian super app Gojek, had significantly helped Indonesian women players in MSMEs by lending their technology and innovation.
One of the highlights of the study results reveals that women-owned businesses benefit the most from the adoption of the new technology and innovation offered by various digital platforms. The use of digital platforms has helped 41 percent of all formal MSMEs while also helping 40 percent of all informal MSMEs (all of them women-owned) in expanding their business reach.
About 82 percent of the women business owners noted that using digital solutions such as GoBiz, Selly and MokaPOS (all run by Gojek) had helped them achieve more efficiency in running their businesses. Thanks to the efficiency offered by these platforms, these women have also been able to achieve a work-life balance: taking care of their businesses while taking care of domestic needs as well, without interrupting their business operations, on which their lives depend.
According to Gojek chief of corporate affairs Nila Marita, the super app is delighted to partner with UN Women and Pulse Lab Jakarta to support the development of this much-needed study on how women entrepreneurs can leverage technology to cope with the pandemic.
“The independent result and findings of the study are also aligned with what Gojek has been advocating for, which is to be the best growth partner for our 900,000 merchants, more than 95 percent of which are MSMEs,” Nila said.
“We're humbled to know that the report finds that digital platforms, such as GoBiz, help MSMEs survive and expand their businesses amid the pandemic. It's even more humbling because the women-owned businesses are benefiting from our digital platform,” she continued.
“We also find it thrilling that 82 percent of the women entrepreneurs who use Gojek digital solutions, such as GoBiz, find it helpful to balance home and work responsibilities. This affirms efforts to ensure that our platform is inclusive for all,” she asserted.
In general, these platforms have also helped the majority of older businesses, accounting for 48 to 68 percent of all MSMEs in Indonesia, survive the pandemic. At the same time, they have also helped 30 to 40 percent of younger businesses expand.
MSMEs in general also play a vital role in Indonesia’s economic resilience, especially during the pandemic. According to an article by thejakartapost.com, the 64 million MSMEs across the country account for 60 percent of Indonesia’s gross domestic product (GDP). These MSMEs also employ about 116.9 million people, accounting for 97 percent of the entire labor force in the country.
Recognizing the potent powers of Indonesian MSMEs, Gojek has made a long-term commitment to support them through its technology. The super app’s end-to-end solutions for MSMEs are encompassed in its #MelajuBersamaGojek (Moving Forward with Gojek) initiative, which was launched in August 2020.
The initiative seeks to put all the efforts and technology available in the Gojek ecosystem to help MSMEs digitalize their entire operations, from marketing, order processing, payment and delivery to administrative matters. The objective of the initiative is primarily to boost MSMEs’ business efficiency, while also helping them cope swiftly with all the sudden changes brought by the COVID-19 pandemic.
Gojek provides in-app features such as GoSend and GoBox delivery services, while also collaborating with various other parties, including payment partners such as QRIS and LinkAja as well as logistics providers Pos Indonesia, Paxel and JNE to create a comprehensive ecosystem for MSMEs.
Finally, Women Empowerment and Child Protection Minister I Gusti Ayu Bintang Darmawati also applauded the digital platforms’ efforts to use technology and innovation to help MSMEs leverage their businesses and think more creatively to adapt to the pandemic.
