BUSINESS STRATEGIES OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN FACING COVID-19 PANDEMIC: A CASE STUDY ON SMEs WEAVING CRAFTSMEN IN TANA TORAJA REGENCY

Abstract

The covid-19 pandemic has affected downgrade of economics in the world
especially in Indonesia. SMEs as one of the business sectors that most affected by
the Covid-19 pandemic need to have the right business strategy in order to bounce
back from adversity due to the COVID-19 pandemic. This study using a SWOT
analysis to identify internal and external factors of SMEs Weaving in Tana Toraja
Regency and uses a SWOT matrix to formulate the right business strategy. TOPSIS
method is used to rank alternative business strategies. Based on the results of the
SWOT matrix, there are four alternative business strategies for Toraja Weaving
SMEs. The proposed alternative business strategy is made in a simulation to test the
effect of the alternative business strategy. By using a dynamic system method with
Powersim 10 software, the simulation results shows that if the weaving SMEs
implement the four of business strategy such as making weaving product
innovations, utilizing digital marketing to market woven products, utilizing a
business license to obtain capital for the development of a weaving business,
making a special weaving tourism village will increase the value sales profit by
131% in a year with a profit rate of Rp.728,606.753, - until the end of 2032.