ANALYSIS OF BUSINESS INNOVATION SYSTEMS AS AN EFFORT FOR DEVELOPMENT OF MICRO SMALL AND MEDIUM ENTERPRISES (MSMEs) POST PANDEMI COVID 19

Abstract

MSME and informal sector are business sectors that have proven to play a strategic or important role in overcoming the impact of the crisis from the Covid 19 pandemic. Problems include aspects of capital, business management capabilities, and the quality of managing human resources. The purpose of this paper is to discuss the MSME innovation system in the food sector in Bogor Regency using a dynamic system perspective which consists of five stages of analysis, namely: Problem Recognition; Problem Understanding and system; Qualitative Analysis; Simulation Modeling; and Policy Testing and Design. Based on the results of the study, it is known that functional and institutional factors make MSME in the food sector in Bogor Regency experience obstacles in developing innovation. Functional factors related to financial problems. Financial factors are very important for developing MSME business innovation, especially related to product innovation. These financial limitations make MSMEs in Bogor Regency face two main problems in the financial aspect, namely: long-term capital and finance for investment which is very necessary for long term output growth.