The Effect of Integrated Entrepreneurship Development on the Performance of MSMEs in DKI Jakarta During the Pandemic Period

Abstract

The COVID-19 pandemic has had a significant impact on Jakarta, with the highest number of COVID cases, resulting in increased unemployment reaching 10.95%, even higher than the national rate, and a rise in self-employed individuals by 97,000 people. On the other hand, the COVID-19 pandemic has forced the government to reallocate funds for COVID-19, resulting in a reduction of more than 50% in the budget for the Micro, Small, and Medium Enterprises (MSMEs) development program (Jakpreneur Program) organized by the Jakarta Government. The objective of this research is to examine the influence of the Jakpreneur Program on the profit performance of MSMEs, considering internal factors. This study uses data from food sector MSMEs provided by the Jakarta Provincial Office of Food Security and the Marine and Agriculture Agency in the years 2020, 2021, and 2022. The findings from the data analysis employing Ordinary Least Squares (OLS) show that in 2020 and 2021, the marketing and licensing programs have a significant positive influence on MSME profits, while in 2022, the training program has a significant positive influence on MSMEs profits. On internal factors, the number of workers, male gender, and access to credit have had a significant positive significant influence on MSMEs profits in all years.