Prediction of Small and Medium Business (SME) Bankruptcy in Gianyar Regency During Covid-19

DOI

10.2991/aebmr.k.211124.074How to use a DOI?

Keywords

Bankruptcy; Altman Model; Small and Medium Enterprises

Abstract

The 2019 Corona Virus (Covid-19) pandemic has caused an economic shock that has affected the country’s economy on a local, national and global scale. This effect is shown by the slowdown in production, consumption and trade as well as causing prolonged political, social and economic problems. Covid-19 has caused concern for the community, the activities of the business world in general and small and medium enterprises (SMEs) in particular. This virus pandemic is a situation that cannot be anticipated (uncontrollable) but its presence determines the survival of SMEs in maintaining and increasing their business growth. Bankruptcy is a condition where the company fails to carry out operational activities optimally so that it affects the expected profit and has an impact on the company’s inability to pay off obligations that are due. Therefore, bankruptcy prediction is important as an early warning for SME entrepreneurs to immediately improve their performance and as a basis for consideration for interested parties to establish various policies so that SMEs can avoid bankruptcy. This research is a quantitative descriptive study that aims to describe the potential for bankruptcy of SMEs with the Altman model in Gianyar Regency during the Covid 19 pandemic. The study was conducted on 180 SME entrepreneurs who were determined by proportional random sampling technique. The results show that the handicraft sector SMEs in Gianyar Regency in 2018-2020 are in a gray or vulnerable condition where the company cannot be determined whether it is a bankrupt company or not because the value of the Z-Score is more than 1.81 and less than 2. 99 with an accuracy rate and type error of 0%. This bankruptcy prediction is expected to be able to assist entrepreneurs in making corporate decisions related to debt decisions and utilizing optimal assets.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Ni Made Suci
AU  - Ni Luh Sayang Telagawathi
AU  - Ni Nyoman Yuliantini
AU  - Putu Agus Jana Susila
PY  - 2021
DA  - 2021/11/25
TI  - Prediction of Small and Medium Business (SME) Bankruptcy in Gianyar Regency During Covid-19
BT  - Proceedings of the 6th International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 2021)
PB  - Atlantis Press
SP  - 520
EP  - 525
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211124.074
DO  - 10.2991/aebmr.k.211124.074
ID  - Suci2021
ER  -