Beyond Lending: Increasing MSME Resilience During the COVID-19 Pandemic

Abstract

MSMEs (Micro, Small, and Medium-Sized Enterprises) are the backbone of the Indonesian economy, contributing 61.07
percent of the national gross domestic product (GDP) and employing 97 percent of the labor force in 2018. They are also
the primary victims, but they also play a role in recovery. This research combines quantitative studies in surveys and
qualitative interviews for data gathering. We conducted a study of 275 Investree Borrowers in Indonesia who got loans
during the epidemic. The sample was selected to represent each loan type and market group. The availability of loans via
Investree has considerably beneficial influences on borrowers, both economically and non-economically. This loan access
is backed by a digital ecosystem created via Investree's agreements with reputable third parties. This ecosystem integrates
business processes, allowing loan applications to be done systematically and resulting in a quicker, more successful
procedure. This research indicates that Investree's availability of loans for micro, small, and medium-sized businesses
enhances business resilience during the pandemic and extends beyond financing. Firstly, Investree loans are an essential
resource for surviving the negative impacts of the COVID-19 epidemic. The readily available loans from Investree have
helped borrowers escape a cash flow issue caused by sluggish demand. These loans assist businesses in maintaining their
day-to-day operations, which is especially true for micro-borrowers, but also in maintaining or even increasing their
income during a recession, thereby contributing to the creation of jobs, particularly among small and medium-sized
borrowers.