Recovery and development of the creative economy fried shallots MSMEs during the covid-19 pandemic in supporting economic growth

Abstract

Abstract The Indonesian economy, especially in Palu, is currently dominated by the Micro, Small, Medium Enterprise (MSMEs) sector and the creative economy. There was a decrease in the production of fried shallots in 2020 for almost all fried shallot MSMEs in Palu City. The COVID-19 pandemic has hampered the performance of MSMEs, especially Fried Shallot MSMEs in Palu, or unable to carry out their business. This research was conducted on five Fried Shallot MSMEs in Palu from March to August 2022. The location selection was made purposively. SWOT analysis was used to analyze the data with a creative economy approach (Penta Helix). The COVID-19 pandemic has had an enormous impact on fried shallot MSMEs in Palu, which are a decrease in the number of workers, a reduction in production, and a decrease in sales. These three things influence each other. In addition, these three factors were affected by the difficulty in obtaining raw materials, the application of restrictive policies during the pandemic, and the declining purchasing power of consumers. Several alternative strategies can be applied to recover and develop fried shallot MSMEs based on the analysis results. In addition, implementing this strategy requires Penta Helix collaboration from MSMEs, Government, Academics, Financial Institutions, and the Community as consumers.