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Modeling the Effects of COVID-19 Disruption on Productivity and Business Sustainability of Food and Beverage MSEs: Evidence from Langsa City, Aceh Province

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Dr. Ibrahim Al-Ghamdi 1 , Dr. Noor Al-Mutairi 1 ,
4 Department of Artificial Intelligence King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia
4 College of Business Administration King Saud University, Riyadh, Saudi Arabia

Abstract

The COVID-19 pandemic has created unprecedented disruptions in micro and small enterprise (MSE) ecosystems, particularly in the food and beverage sector, which is highly sensitive to mobility restrictions, demand shocks, and supply chain instability. This study develops an analytical model to examine the effects of COVID-19-induced disruptions on productivity and business sustainability of food and beverage MSEs in Langsa City, Aceh Province. Using secondary economic indicators from the Badan Pusat Statistik (BPS) and synthesized empirical literature, the study conceptualizes the interrelationship between operational constraints, financial stress, labor productivity, and long-term business continuity.

The findings suggest that pandemic-related restrictions significantly reduced output efficiency, weakened market access, and disrupted consumer demand structures, ultimately affecting enterprise sustainability. Consistent with prior evidence, operational performance of MSEs is strongly influenced by financial capacity, human resource adaptability, and marketing resilience (Ammar, 2021). Furthermore, digital transformation and adaptive strategies emerged as key survival mechanisms during crisis conditions (Arianto, 2020).

The study highlights that sustainability of MSEs in Langsa City depends on their ability to integrate digital marketing, optimize resource allocation, and adapt to post-pandemic economic structures. The model contributes to understanding crisis-driven productivity decline and provides a foundation for policy interventions aimed at strengthening MSE resilience in emerging economies.

Keywords

COVID-19 disruption, micro and small enterprises, productivity

References

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