Determinant Factor Analysis of Financial Performance of Micro, Small and Medium Enterprises with Social Capital as a Moderating Variable During COVID-19 in Aceh, Indonesia

Abstract

Abstract This study analyzes the problem factors affecting Micro, Small, and Medium Enterprises (MSMEs) performance with social capital variables. The problems are related to developing MSMEs’ financial and non-financial performance and are considered inseparable from various internal and external influences. This research is a quantitative-qualitative research with primary data. The utilization of questionnaires and interviews as methods for data collection. The data analysis technique used was a statistical analysis based on partial least squares (PLS). The study’s results found that internal and external factors had a significant positive effect on the financial performance of MSMEs. The E-commerce factors and social capital significantly positively affected the financial performance of MSMEs. However, the colonial capital did not strengthen the relationship between internal variables, external, and E-commerce on the financial performance of MSMEs.