THE IMPACT OF PANDEMIC COVID-19: EXPERIENCES FROM MALAYSIAN MICROENTERPRISES

Abstract

Small and medium-sized enterprises (SMEs) are backbone of most economy worldwide. In Malaysia, more than 97% of the overall business establishments are SMEs and almost 80% of the SMEs comprise of microenterprises that operate with less than five employees. Despite its limited financial and human resources, microenterprises are however considered to be vital for the well- being of the rural communities and capable of reducing income gap between communities. Unfortunately, microenterprises were the most affected by the outbreak pandemic Covid-19 than other business establishments. In rural economy, such as in the state of Kelantan most sole traders operate the microenterprises to support their families’ well-being. Affected income of microenterprises were definitely affected their families’ well-being as well. This study was conducted among businesses in Rantau Panjang, Kelantan with the objective to identify the impact of Covid-19 experienced by them. The study also decided to investigate their readiness to shift to online business. This study applies qualitative approach utilizing structured face-to-face interviews. It was identified that all the participants suffered sales reduction due to Covid- 19 leading to lower income or no income at all. Positively, Covid-19 has forced the microenterprises to quickly shift to alternative online platform to ensure the survival of their businesses. This study is considered to be important because the resilient and sustainability of these microenterprises would alert the well- being and economic status of their families in the post pandemic of Covid-19.