ACCELERATION OF EQUITY CROWDFUNDING AS AN ALTERNATIVE FINANCING TO MSMEs IN THE COVID-19 PANDEMIC ERA

Abstract

One of the current crises, namely the COVID-19 pandemic, has not only had an impact on health but also global economic developments. Efforts made by the government to restore the economy, among others through the empowerment of MSMEs. In addition to the problem of the COVID-19 crisis, one of the classic obstacles faced by MSMEs in Indonesia is in terms of financing. Capital problems coupled with the pandemic condition of social distancing restrictions and a shift to online communication can encourage innovation in the financial sector. The digitization of financing services that has emerged in the current era of digital technology is equity crowdfunding. These financial services can be an alternative choice of business financing to enlarge the business or become a profitable and safe investment option for the community. In this study, the overall performance of equity crowdfunding in MSME financing will be discussed using SWOT analysis. This financial service innovation is expected to be able to provide financing assistance for MSMEs easily and provide opportunities for equity crowdfunding to become an alternative financing for MSMEs.