Main Article Content


The purpose of this literature review is to reveal the role of financial support for MSMEs as a result of the Covid-19 pandemic. This paper is sourced from secondary data with a review approach from the previous article. Several articles from various countries have produced that finance has a very important role in the sustainability of MSMEs. Restrictions on community activities as an effort to prevent exposure to Covid-19 impact the decline of the economy in various countries, which results in a decline in the performance of MSMEs. The decline in people's purchasing power impacts the decline in aggregate demand for goods and services, causing a decrease in income for MSME actors. Under these conditions, MSMEs need financial support from various parties for their business continuity. With financial support (capital strengthening or financing), it is hoped that MSME actors can continue their business amidst the economic crisis due to the Covid-19 pandemic. It can be concluded that financial support provides strength for MSMEs to cover operational costs and survive in conditions of economic crisis. Financial support can be in the form of disbursing stimulus funds in cash or credit, tax reductions, credit interest relief, deferral of tax payments, reduced rental fees, exemption from administrative costs to open access to financing or capital. Apart from financial support, it is also carried out to accelerate the digitization of MSMEs to open access to market expansion. Also, the women's business empowerment program (Puspa) from the East Java provincial government to increase family income.


Covid-19, Financial support, SMEs.

Article Details

How to Cite
Gunartin, G., Pratikto, H., & Sopiah, S. (2021). Financial Support on SMEs Impact of the Covid 19 Pandemic. Kontigensi : Jurnal Ilmiah Manajemen, 9(2), 682-689.


  1. Abdulsaleh, A. M., & Worthington, A. C. (2013). Small and medium-sized enterprises financing: A review of the literature. International Journal of Business and Management, 8(14), 36.
  2. Affandi, A., Sarwani, A. S., Erlangga, H., Siagian, A. O., Purwanto, A., Effendy, A. A., & Juhaeri, G. (2020). Optimization of MSMEs Empowerment in Facing Competition in the Global Market during the COVID-19 Pandemic Time. Systematic Reviews in Pharmacy, 11(11), 1506-1515.
  3. Anakpo, G., & Mishi, S. (2021). Business response to COVID-19 impact: Effectiveness analysis in South Africa. The Southern African Journal of Entrepreneurship and Small Business Management, 13(1), 7.
  4. Bahtiar, R. A. (2021). Dampak pandemi covid-19 terhadap sektor usaha mikro, kecil, dan menengah serta solusinya. Bidang Ekonomi dan Kebijakan Publik.
  5. Belitski, M., Guenther, C., Kritikos, A. S., & Thurik, R. (2021). Economic effects of the COVID-19 pandemic on entrepreneurship and small businesses. Small Business Economics, 1-17.
  6. Block, J. H., Fisch, C., & Hirschmann, M. (2021). The determinants of bootstrap financing in crises: Evidence from entrepreneurial ventures in the COVID-19 pandemic. Small Business Economics, 1-19.
  7. Buffington, C., Dennis, C., Dinlersoz, E., Foster, L., & Klimek, S. (2020). Measuring the effect of covid-19 on small businesses: The small business pulse survey (No. 20-16).
  8. Dörr, Julian., Murmann, S., & Licht, G. (2021). Small Firms and the COVID-19 Insolvency Gap. Small Business Economics.
  9. Fairlie, R., & Fossen, F. M. (2021). The early impacts of the COVID-19 pandemic on business sales. Small Business Economics, 1-12.
  10. Gunadi, A. D., Lesmana, H., Fachrizah, H., Revindo, M. D., & Daniswara, R. V. (2021). COVID-19 Pandemic and MSMEs in Indonesia: Impact and Policy Responses. Jurnal Ekonomi Indonesia, 10(2), 143-171.
  11. Pedauga, L., Sáez, F., & Delgado-Márquez, B. L. (2021). Macroeconomic lockdown and SMEs: the impact of the COVID-19 pandemic in Spain. Small Business Economics, 1-24.
  12. Pereira, I., & Patel, P. C. (2021). Impact of the COVID-19 pandemic on the hours lost by self-employed racial minorities: Evidence from Brazil. Small Business Economics, 1-37.
  13. Snyder, H. (2019). Literature review as a research methodology: An overview and guidelines. Journal of business research, 104, 333-339.
  14. Torrès, O., Benzari, A., Fisch, C., Mukerjee, J., Swalhi, A., & Thurik, R. (2021). Risk of burnout in French entrepreneurs during the COVID-19 crisis. Small Business Economics, 1-23.
  15. Torrès, O., Benzari, A., Fisch, C., Mukerjee, J., Swalhi, A., & Thurik, R. (2021). Risk of burnout in French entrepreneurs during the COVID-19 crisis. Small Business Economics, 1-23.
  16. Zhang, T., Gerlowski, D., & Acs, Z. (2021). Working from home: small business performance and the COVID-19 pandemic. Small Business Economics, 1-26.