Author: Admiral Athallah Darmawan, Jahen Fachrul Rezki
Executive Summary
This study investigates the resilience of Micro, Small, and Medium Enterprises (MSMEs) during the COVID-19 pandemic by analyzing firm characteristics and entrepreneurial competencies. Utilizing a meta-analysis approach, 60 literature studies and 425 empirical estimates were examined. The findings reveal that entrepreneurial competence, encompassing entrepreneurial orientation, networking and social capital, and human capital, significantly enhances MSME resilience more than firm characteristics such as firm size, business age, and financial capital. Additionally, technological utilization and cultural aspects (uncertainty avoidance, individualism, and motivation towards achievements and success) were assessed as moderating factors. The results indicate that robust ICT infrastructure, proficiency, and utilization, along with supportive policies, bolster MSME resilience. The study also underscores the negative impact of high uncertainty avoidance and individualism on resilience, whereas motivation towards achievement and success positively influences resilience. The analysis of Indonesian MSMEs, incorporating 26 literature studies and 91 empirical estimates, corroborates these findings, highlighting the greater impact of entrepreneurial competence. The study suggests the need for targeted policies and support programs to enhance MSME resilience through technological and cultural adaptation.
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