How Local Based Businesses Face Covid Crisis

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We never know when covid crisis will end. Distribution of vaccine is far from fulfilled to billion world population. This crisis will be long time. Small enterprises or mass businesses in my country are stronger in the condition. They still survive and even grow.
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sate madura rizky barokah

Many big enterprises are not resistant to crisis. Covid is not only health crisis but also economic crisis. Some companies close or halt their operation. The difficulties of getting raw materials and suspending of distribution for export have caused companies suffer from lost.

Serang Contributor, Rasyid Ridho | Aprillia Editor Ika SERANG, KOMPAS.com - The Banten Province Manpower and Transmigration Office noted that 74 companies went bankrupt or closed due to the impact of the Covid-19 pandemic. In fact, 19,000 workers in Termination of Employment (PHK) and 30,000 people were sent home because the company could no longer afford to pay their employees' salaries.

https://regional.kompas.com/read/2020/10/12/20164061/74-perusahaan-di-banten-bangkrut-gegara-pandemi-puluhan-ribu-pekerja-kena

Those cases are only in a district Serang , Banten Indonesia. There are more companies and industries that operate in Jakarta, Bekasi, Bogor, Kerawang and other big cities in Indonesia. Most of the companies are manufacturers that depend on imported raw materials. They are not resistant to crisis because the supply of raw material was hampered. Besides that, the decreasing consumption also impacts to the demand of the products. It will impact to the companies gross income and revenue.

Mass business based on locality more resistant to crisis

Small enterprises and mass businesses like small food stalls, retails and other small enterprises that based on local products are more resistant to crisis.

"What is certain is that almost more than 6,800 restaurants have closed," said Deputy Chairman of the Indonesian Hotel and Restaurant Association (PHRI) in the Restaurant Sector Emil Arifin when contacted by detik.com, Sunday (19/4/2020).

https://finance.detik.com/berita-ekonomi-bisnis/d-4982564/sudah-6800-restoran-tutup-gara-gara-corona

In our country, there are some mass retails and small food counters that operate and sell local food. In crisis 1998, they were the most resistant businesses. In covid crisis, they still have power. If you walk around on streets in Indonesia, there are still many food sellers and small retails that open. If you shop there, the menu or products are local.

Warteg, Warung Nasi Padang, Sate Madura are the most popular food or small restaurants that are most resistant. Warteg sell local menu from central Java , Warung Nasi Padang is a kind of small restaurant that provide menu from West Sumatra. Padang cuisines are very popular in Indonesia. Sate Madura is a food stall that sell grilled skewed lamb and chicken meat. The taste was unique. All those three restaurants or food stalls use local raw materials like rice, vegetables, chicken, fish , lamb , beef and other local products. The price of the food ranges from $0.8 to $5 per portion. The customers come from all social economic strata so the restaurants do not loose their customers though in crisis. When you eat at a small food restaurants in my country normally you can satisfy by spending $10 for 4 people. You will have full menu like chicken, satay vegetables with rice plus hot tea.

Other sectors that are resistant to crisis are green grocers and farming industries. Local farmers still earn good revenue from crisis because the net price increase too. Some green grocers still are still full of customers. Most moms shops vegetables directly. They turn to small green grocers instead shopping in mall because the location of the stalls are close to housing.

Conclusion

Covid crisis will change the behavior to trade, to make production and to do some business activities. Natural selection will leave what most businesses the strongest. Local products and materials will save most businesses from crisis because the products are available in the market and easy to get. Customers will look for price products in crisis condition.

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