The Impact Of Digital Technology In The Entrepreneur Transition During The Covid-19 Pandemic

Authors

  • Tasmilah Tasmilah Tasmilah Statistics of Malang Municipality/BPS Kota Malang
  • Devanto Pratomo Universitas Brawijaya
  • Wildan Syafitri Universitas Brawijaya

DOI:

https://doi.org/10.21776/ub.jiae.2022.010.01.6

Abstract

The Covid-19 pandemic has decreased the number of entrepreneurs assisted by permanent workers in Indonesia. Using SAKERNAS Data of August 2019 and 2020, this study uses multinomial logistic regression to estimate the impact of digital technology in the entrepreneurial transition during the Covid-19 pandemic. The results show that digital technology and the internet have a negative and significant effect on the transition of formal entrepreneurship in Indonesia. The use of digital technology and the internet will prevent formal entrepreneurs from transitioning into informal entrepreneurs or leaving entrepreneurship. Increasing digital technology usage and the internet for promotional and sales purposes will enable entrepreneurs to survive amid a pandemic. In addition, building information technology infrastructure such as Base Transceiver Station (BTS), especially in rural areas, is necessary to increase internet coverage and encourage business scale-up in rural areas.

References

Babbitt, L. G., Brown, D., & Mazaheri, N. (2015). Gender, Entrepreneurship, and the Formal-Informal Dilemma: Evidence from Indonesia. World Development, 72, 163–174. https://doi.org/10.1016/j.worlddev.2015.02.019.

Badan Pusat Statistik. (2020). Keadaan Pekerja di Indonesia Agustus 2020. In Keadaan Pekerja di Indonesia Agustus 2020. BPS RI.

BPS. (2018). Statistik Potensi Desa Indonesia 2018. BPS RI.

BPS. (2020a). Analisis Hasil Survei Dampak Covid-19 Terhadap Pelaku Usaha. BPS RI.

BPS. (2020b). Indikator Pasar Tenaga Kerja Indonesia Agustus 2020. BPS.

Elert, N., Andersson, F. W., & Wennberg, K. (2015). The impact of entrepreneurship education in high school on long-term entrepreneurial performance. Journal of Economic Behavior and Organization, 111, 209–223. https://doi.org/10.1016/j.jebo.2014.12.020

Giotopoulos, I., Kontolaimou, A., Korra, E., & Tsakanikas, A. (2017). What drives ICT adoption by SMEs ? Evidence from a large-scale survey in. Journal of Business Research, 81(August), 60–69. https://doi.org/10.1016/j.jbusres.2017.08.007

Grandón, E. E., Nasco, S. A., & Jr, P. P. M. (2011). Comparing theories to explain e-commerce adoption. Journal of Business Research, 64(3), 292–298. https://doi.org/10.1016/j.jbusres.2009.11.015

Greene, W. H. (2000). Econometric Analysis 4th Ed.

Gujarati, D. N., & Porter, D. C. (2013). Basic Econometrics. Tata McGraw-Hill Education.

ILO. (2014). Transitioning from the informal to the formal economy. In International Labour Conference, 103rd Session (Issue 1).

ILO. (2021). Enterprise Formalization: An Introduction. 1–12. https://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/---ifp_seed/documents/publication/wcms_766156.pdf

International Labor Office. (2018). The solar tent—cheap and effective pest control in museums. In Women and Men in the Informal Economy: Statistical Picture (third, Vol. 28) (Vol. 28, Issue 1). ILO. https://doi.org/10.1179/bac.2003.28.1.018

International Labour Organization. (2010). Informal Economy in Indonesia: Size, Composition, dan Evolution. ILO. http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/---ilo-jakarta/documents/publication/wcms_145402.pdf

Jiménez, A., Palmero-Cámara, C., González-Santos, M. J., González-Bernal, J., & Jiménez-Eguizábal, J. A. (2015). The impact of educational levels on formal and informal entrepreneurship. BRQ Business Research Quarterly, 18(3), 204–212. https://doi.org/10.1016/j.brq.2015.02.002

Kaufmann, D., & Kraay, A. (2008). Governance indicators: Where are we, where should we be going? World Bank Research Observer, 23(1), 1–30. https://doi.org/10.1093/wbro/lkm012

Lewis, W. . (1954). Economics of Development with Unlimited Supplies of Labour. The Manchester School, 22(2), 139–191. https://doi.org/10.1111/j.14679957.1954.tb00021.x

Li, L., Su, F., Zhang, W., & Mao, J.-Y. (2017). Digital transformation by SME entrepreneurs : A capability perspective. February 2016, 1–29. https://doi.org/10.1111/isj.12153

Naudé, W. (2009). Out with the sleaze , in with the ease insufficient for entrepreneurial development ? In Research paper / UNU-WIDER.

Nyström, K. (2008). The institutions of economic freedom and entrepreneurship: Evidence from panel data. Public Choice, 136(3–4), 269–282. https://doi.org/10.1007/s11127-008-9295-9

Oliveira, T., & Martins, M. F. (2011). Literature Review of Information Technology Adoption Models at Firm Level. May 2014.

Ongori, H., Migiro, S. O., & Ongori, H. (2011). Information and communication technologies adoption in SMEs : literature review. https://doi.org/10.1108/17561391011019041

Rogers, E. M. (1965). Diffusion of Innovations (4th.ed). The Free Press. https://doi.org/10.4324/9780203710753-35

Schneider, F., & Enste, D. H. (2000). Shadow Economy Around the World: Size, Causes, and Consequences.

Soluk, J., Kammerlander, N., & Darwin, S. (2021). Digital entrepreneurship in developing countries: The role of institutional voids. Technological Forecasting and Social Change, 170, 120876. https://doi.org/10.1016/j.techfore.2021.120876

Soluk, J., Kammerlander, N., & De Massis, A. (2021). Exogenous shocks and the adaptive capacity of family firms: exploring behavioral changes and digital technologies in the COVID-19 pandemic. R and D Management, 1–17. https://doi.org/10.1111/radm.12471

Sutter, C., Bruton, G. D., & Chen, J. (2019). Entrepreneurship as a solution to extreme poverty: A review and future research directions. Journal of Business Venturing, 34(1), 197–214. https://doi.org/10.1016/j.jbusvent.2018.06.003

Thai, M. T. T., & Turkina, E. (2014). Macro-level determinants of formal entrepreneurship versus informal entrepreneurship. Journal of Business Venturing, 29(4), 490–510. https://doi.org/10.1016/j.jbusvent.2013.07.005

Van Stel, A., Storey, D. J., & Thurik, A. R. (2007). The effect of business regulations on nascent and young business entrepreneurship. Small Business Economics, 28(2–3), 171–186. https://doi.org/10.1007/s11187-006-9014-1

Verheul, I., Wennekers, S., Audretsch, D., & Thurik, R. (2001). An Eclectic Theory of Entrepreneurship. Erasmus, 48. http://www.tinbergen.nl

Williams, C. C. (2014). Urban Studies Moscow. June. https://doi.org/10.1080/00420980701540945

Williams, C. C., & Shahid, M. S. (2016). Informal entrepreneurship and institutional theory: explaining the varying degrees of (in)formalization of entrepreneurs in Pakistan. Entrepreneurship and Regional Development, 28(1–2), 1–25. https://doi.org/10.1080/08985626.2014.963889

Williams, C. C., Shahid, M. S., & Martínez, A. (2016). Determinants of the Level of Informality of Informal Micro-Enterprises: Some Evidence from the City of Lahore, Pakistan. World Development, 84, 312–325.

Downloads

Published

2022-02-22