Role of Financial Technology in the Development of MSMEs During the Covid-19 Pandemic.

Abstract

The development of technology in the current era of globalization is a necessity, especially during the Covid-19 pandemic. Technology in this digital era is very important for business actors to develop their business. The development of MSMEs is an important factor in the Indonesian economy that can create many jobs, make a large contribution to Indonesia's GDP, add value to non-oil and gas exports and increase the amount of investment. However, unfortunately many MSMEs whose digitization level is still low, difficult to access technology and lack of understanding of strategies in business.This study aims to determine the difference in capital, turnover, assets, profits, labor and savings of MSMEs between before and after using Financial Technology during the Covid-19 Pandemic on the development of MSMEs. The data used is in the form of primary data obtained from observations, questionnaires and interviews. The total population in this study was 136,609 MSMEs. The research sample technique uses purposive sampling technique, on the basis of determining the number in this study using the slovin formula with an estimated error rate of 10%, so that the number of samples obtained is 100 respondents. Data analysis was performed using the
Paired Sample T-Test. The result of this study is that: There are significant differences in capital, turnover, assets, profits, labor, and savings between before and after using Fintech. Evidenced by the significance value of 0.000 < 0.05 (Ha received), and it can be concluded that Financial Technology plays a significant role in the development of MSMEs during the Covid-19 pandemic.