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Small enterprises expect further slowdown this year
Nearly two thirds of respondents to a survey conducted by financial technology (fintech) firm KoinWorks expected their businesses to decline this year.
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Women finish handcrafted batik at a home in Sleman, Yogyakarta, on Aug. 27, 2018. (Antara Photo/Irfan Anshori)
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mall and medium enterprises (SMEs) have expressed pessimism about their business prospects this year as the COVID-19 pandemic shows little sign of abating.
A survey conducted by financial technology (fintech) firm KoinWorks found that 63.4 percent of respondents expected their businesses to decline this year as a number of enterprises, such as those in the services sector, believed it would be difficult to operate before COVID-19 vaccines were widely administered.
Only about 15.1 percent of SMEs believed their sales and revenue would increase in the first quarter of the year, while 20 percent of thought their businesses would continue in a similar fashion to 2020.
“Those who are optimistic about this year’s business performance are those who can adapt to the government’s social restrictions and those who saw their sales go up in the last quarter of [2020], KoinWorks chief marketing officer Jonathan Bryan said during a press briefing on Wednesday.
“One of the ways SMEs are surviving this pandemic is through preserving cash and stabilizing their growth.”
The survey was conducted from October to November of last year and polled 1,188 respondents from various industries, including fashion, healthcare, home supplies and food and beverages, throughout Indonesia.
