The influence of financial bootstrapping and digital transformation on financial performance: evidence from MSMEs in the culinary sector in Indonesia

Rita, Maria Rio; Nastiti, Pambayun Kinasih Yekti Article The influence of financial bootstrapping and digital transformation on financial performance: evidence from MSMEs in the culinary sector in Indonesia Cogent Business & Management Provided in Cooperation with: Taylor & Francis Group Suggested Citation: Rita, Maria Rio; Nastiti, Pambayun Kinasih Yekti (2024) : The influence of financial bootstrapping and digital transformation on financial performance: evidence from MSMEs in the culinary sector in Indonesia, Cogent Business & Management, ISSN 2331-1975, Taylor & Francis, Abingdon, Vol. 11, Iss. 1, pp. 1-15, https://doi.org/10.1080/23311975.2024.2363415 This Version is available at: https://hdl.handle.net/10419/326320 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. 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If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Cogent Business & Management ISSN: 2331-1975 (Online) Journal homepage: www.tandfonline.com/journals/oabm20 The influence of financial bootstrapping and digital transformation on financial performance: evidence from MSMEs in the culinary sector in Indonesia Maria Rio Rita & Pambayun Kinasih Yekti Nastiti To cite this article: Maria Rio Rita & Pambayun Kinasih Yekti Nastiti (2024) The influence of financial bootstrapping and digital transformation on financial performance: evidence from MSMEs in the culinary sector in Indonesia, Cogent Business & Management, 11:1, 2363415, DOI: 10.1080/23311975.2024.2363415 To link to this article: https://doi.org/10.1080/23311975.2024.2363415 © 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group Published online: 06 Jun 2024. Submit your article to this journal Article views: 3712 View related articles View Crossmark data Citing articles: 6 View citing articles Full Terms & Conditions of access and use can be found at https://www.tandfonline.com/action/journalInformation?journalCode=oabm20 EntrEprEnEurship & innovation | rEsEarch articlE Cogent Business & ManageMent 2024, VoL. 11, no. 1, 2363415 The influence of financial bootstrapping and digital transformation on financial performance: evidence from MSMEs in the culinary sector in Indonesia Maria rio rita and pambayun Kinasih Yekti nastiti Faculty of economics and Business, universitas Kristen satya Wacana, salatiga, indonesia ABSTRACT to reduce dependence on external funding, financial bootstrapping can be an alternative low-cost funding solution for MsMEs. cost efficiency can also be achieved by carrying out digital transformation in business operational activities. Furthermore, cost efficiency will lead to improved financial performance of MsMEs. this research investigates the influence of financial bootstrapping and digital transformation on the financial performance of MsMEs. Data collection was carried out through a field survey involving several enumerators and 180 respondents. the respondents of this research were female MsME entrepreneurs in the culinary sector in central Java province, indonesia. the data was analyzed using the partial least squares-structural Equation Modeling (pls-sEM) method. the research results revealed that financial bootstrapping and digital transformation have a significant positive effect on the financial performance of MsMEs. Furthermore, this study offers recommendations to improve the financial performance of MsMEs. Entrepreneurs must be creative in utilizing cheap internal funding sources and willing to adopt digital technology to increase operational efficiency and customer satisfaction. Fields: entrepreneurship and small firm management; business, management and accounting; entrepreneurial finance 1. Introduction various literature regarding the existence of MsMEs in various countries emphasizes their vital role in the national economy. the massive number compared to large-scale businesses has an impact on high levels of labor creation and absorption (rocha, 2012), and a significant contribution to the gross domestic product (Yoshino & taghizadeh-hesary, 2015). in addition, MsMEs also play a role in strengthening the local or household economy (ali et al., 2023; pradana et al., 2023). however, with the coviD-19 pandemic, many MsMEs were unable to survive because they experienced a significant decline in revenue. in the midst of this situation, there is an interesting fact that MsMEs in the culinary sector still existed during the pandemic, and they even provided extensive job opportunities during the pandemic (pusung et al., 2023). considering their crucial role, identifying the factors that are thought to influence the performance of MsMEs in the culinary sector is interesting to explore further. to ensure the performance and sustainability of MsMEs in the culinary sector, adequate funding is a crucial factor. therefore, business actors are required to be able to meet sufficient business capital which reflects financial resource capabilities (prakash & thamilselvan, 2023). however, in general, MsME entrepreneurs face problems in fulfilling their funding due to their inability to access external funding as a result of information asymmetry regarding business prospects and instability in the company’s financial condition (athaide & pradhan, 2020). apart from that, there are discouraged borrowers, namely the © 2024 the author(s). Published by informa uK Limited, trading as taylor & Francis group. CONTACT Maria Rio Rita [email protected] Faculty of economics and Business, universitas Kristen satya Wacana, salatiga, indonesia. https://doi.org/10.1080/23311975.2024.2363415 this is an open access article distributed under the terms of the Creative Commons attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. the terms on which this article has been published allow the posting of the accepted Manuscript in a repository by the author(s) or with their consent. ARTICLE HISTORY received 30 october 2023 revised 22 May 2024 accepted 25 May 2024 KEYWORDS Financial performance; financial bootstrapping; digital transformation; female entrepreneurs; MsME SUBJECTS Entrepreneurship and small Business Management; Business, Management and accounting; Entrepreneurial Finance REVIEWING EDITOR Eric liguori, Florida state university, united states 2 M. r. rita anD p. Kinasih YEKti nastiti behavior of entrepreneurs who are reluctant to apply for loans because they are afraid that their applications will be rejected, even though in fact they need the funds (Kon & storey, 2003). the existence of external funding constraints has the potential to encourage the creativity of MsME entrepreneurs to generate internal funding resources or what is known as financial bootstrapping. Financial bootstrapping can be done by utilizing personal assets, seeking loans from family members, and/or utilizing profits to support operational activities (Daniel et al., 2015; Jayawarna et al., 2015). this strategy is carried out to meet working capital limitations by reducing dependence on external funding, so that capital costs can be reduced (Fitzsimons etal., 2023). however, financial bootstrapping was chosen as funding for MsMEs not merely due to external funding constraints but the preference of the MsME actors concerned is probably due to not wanting to be burdened with debt and not wanting to bother fulfilling the requirements for applying for external funding. Financial bootstrapping is necessary to maintain sufficient working capital needed for sales activities which are a source of business profit. thus, it is reasonable to assume that the ability of entrepreneurs to provide sufficient internal funds (al issa, 2020; li & alvarado, 2021; Mabonga, 2020) is one of the factors that influences the financial performance of culinary MsMEs. Based on a literature search, evidence was found that financial bootstrapping has a significant effect on the performance of start-ups (Jones & Jayawarna, 2010) and software development companies (harrison et al., 2004). however, this research took England as a developed country for the research object. therefore, it is interesting to investigate further whether a similar phenomenon will also be found in developing countries with different characteristics (Fitzsimons et al., 2023), such as indonesia, where the business landscape in this country is dominated by micro-scale businesses with business management that is still conventional. in addition, considering that the research was carried out quite a long time ago, it needs to be updated so that the relevance of the current conditions can be known. Besides the involvement of financial resources in the form of financial bootstrapping, the financial performance of MsMEs is also made possible by the existence of non-financial resources, especially the ability of culinary MsME actors to do digital transformation. Even though MsMEs are categorized as lagging behind large companies in digitalization practices (Eller etal., 2020), it cannot be denied that digitalization plays an important role in business growth (Berman et al., 2023). in line with the development of the digital ecosystem, culinary MsMEs are required to take advantage of technological developments so that they can respond to the demands of customers who want things that are fast and practical. currently, culinary MsMEs have a choice of various e-commerce platforms, social media, and digital payments that can shift some or even all of their operations to a digital-based format to maintain their operations in times of crisis (Maulini etal., 2022), and are useful for expanding markets and improving business performance (subriadi & Wardhani, 2022). several studies have documented that digital transformation in MsMEs has shown to have a positive impact on business performance. MsMEs in the manufacturing sector that have utilized digital marketing have had increased performance in their companies (Kawira etal., 2019), experienced reduced costs, and had increased innovation and business performance resulting from digital transformation (Zheng et al., 2023). Furthermore, studies on sMEs in the trade, service, and manufacturing sectors reveal that digital transformation has an impact on financial performance, although it is only small (valdez-Juárez et al., 2024) and increases sales turnover in the culinary sector from digital marketing (purnama et al., 2022). referring to the literature above, it appears that digital transformation for culinary MsMEs is still limited and specific to the marketing aspect, whereas this study will also cover digital payments. this raises the question of whether these findings also apply to the culinary sector, even though the theoretical assumptions as stated previously make it possible to produce the same findings. this study aims to investigate the effects of financial bootstrapping and digital transformation on the financial performance of MsMEs in the culinary sector in indonesia. the sample for this research is 180 female entrepreneurs in culinary businesses of an MsME scale spread across three cities in indonesia. Based on the existing research gaps, this study is expected to enrich the literature in the field of entrepreneurial finance by combining financial and non-financial resources as determinants of MsME financial performance. it is also hoped that these findings can be considered by MsME actors and policymakers in encouraging MsME financial performance by expanding access to funding, supporting the MsME digital ecosystem, and designing empowerment programs for female entrepreneurs. this paper is presented in five sessions: introduction, literature review and hypothesis development, research methods, results and discussion, and ending with the conclusion. cogEnt BusinEss & ManagEMEnt 3 2. Literature review and hypothesis development 2.1. Literature review this section presents the definitions and types of financial bootstrapping and digital transformation. next, the researcher formulated hypotheses that describe the influence of financial bootstrapping and digital transformation on the financial performance of culinary MsMEs managed by female entrepreneurs. 2.1.1. Financial bootstrapping the term financial bootstrapping was introduced by Bhide, (1992) as a set of creative practices available to entrepreneurs to help reduce operational costs and improve cash flow management. therefore, efforts are needed to (a) minimize external sources and (b) utilize resources owned by others at little or no cost (Winborg & landström, 1997, 2001). Bootstrapping offers an ideal strategic path to break out of the vicious cycle of limited resources (venkataraman, 2003); develop existing financial resources without using debt; involve venture capitalists or other external means (schofield, 2015); increase liquidity and strengthen the cash flow (Fatoki, 2014); and finance businesses when other traditional sources are absent (Zwane & nyide, 2016). For MsMEs, bootstrapping is a relevant source of financing considering that they often face limited financing (Bui & long, 2021; ruiz-palomo et al., 2022) as a result of not being able to fulfill the requirements for applying for bank credit (chimucheka, 2013; Khan, 2022; Zwane & nyide, 2016), financial limitations (hussain et al., 2018; Widyastuti & hermanto, 2022), or a reluctance to apply for bank credit for fear of being rejected (discouraged borrower) (Kon & storey, 2003). in addition, bootstrapping is in line with the view of the pecking order theory (Myers, 1984) that internal financing is a source of funds with the lowest capital costs compared to external financing sources. there are various bootstrapping techniques. Winborg and landström (1997) categorized four bootstrapping options: (1) bootstrapping product development, for example utilizing relationships with suppliers to meet raw material needs in the context of product development; (2) bootstrapping business development, using personal savings or credit cards to avoid business debt; (3) bootstrapping to reduce capital requirements, for example using leasing equipment instead of buying and hiring part-time staff; and (4) bootstrapping to meet capital needs, for example: selling or pledging receivables. in addition, leach and Melicher (2020) proposed four categories: 1) supplier-related bootstrapping by relying on delayed debt payment times and discounts from suppliers; (2) bootstrapping related to customers, taken by utilizing financing from customers in the form of advances and accelerated repayment of receivables; (3) owner-related bootstrapping, prioritizing sources of financing from the owner, such as utilizing personal assets and funds and allocating profits for business development; and (4) Joint use assets, using business premises or fixed assets simultaneously. Furthermore, the five types of bootstrapping offered by Mittal and raman (2021) are as follows: (1) delaying payments, (2) relationship resources, (3) limiting investments, (4) owner loans, and (5) client financing. From the various groupings of options above, in simple terms, bootstrapping is actually related to two sides of financial management. in terms of financing decisions, MsMEs try to get cheap sources of financing by relying more on personal finances and efficient working capital management. in terms of investment decisions, MsMEs try to reduce cash flow for the purposes of investing in fixed assets. 2.1.2. Digital transformation there are three different terms in this technological evolution: digitization, digitalization, and digital transformation which are currently used in the business world. in simple terms, digitization changes analog information into a digital format, while digitalization includes the use of digital technology to improve business processes, then digital transformation refers to strategic changes in a business by exploiting the potential of digital technology to create added value (verhoef etal., 2021). the forms of digital transformation that are usually carried out by MsMEs, especially those operating in the culinary sector in indonesia, include: online delivery applications (go-food/grab-food), digital wallets (go-pay, ovo, Dana), Qris (Quick response) payments code indonesian standard), social media for marketing (Youtube, tiktok, instagram, twitter, Facebook, Whatsapp), and applications for financial transactions and inventory recording. 4 M. r. rita anD p. Kinasih YEKti nastiti Digital transformation differs from information technology in that it involves redefining a company’s value proposition, aiming to change the organization’s identity, and driving new business strategies. Meanwhile, information technology only strives to support existing strategies (gertzen et al., 2022). specifically, libert etal. (2016) stated that digital transformation refers to changes in internal operations, client relationships, and value creation based on digital technologies. technological advances have shifted various aspects of business operations (Fitzgerald etal., 2013; Mykhailo, 2020), including accounting processes (al-hattami et al., 2024). Digital transformation was demonstrated to have an important role as a business strategy for MsMEs during the coviD-19 pandemic (setyoko & Kurniasih, 2022). however, Mandviwalla and Flanagan (2021) emphasized that digital transformation remains relevant both during the pandemic and after the coviD-19 pandemic for the sustainability of MsMEs. With digital transformation, MsMEs can integrate into global markets and have access to resources, including finance (e.g. peer-to-peer loans), training, and recruitment channels, such as government services that are increasingly available online (oEcD, 2021). Digital transformation is also the answer to consumer demands who need fast and smooth service (proksch et al., 2024). however, MsMEs tend to lack the confidence to carry out digital transformation if they do not receive assistance from external parties, including financial assistance in the form of subsidies and tax incentives from the government, technology, and an increase in human resource capacity (rupeika-apoga et al., 2022). a similar perspective was also stated by ulas (2019) that MsME entrepreneurs sometimes do not have a high commitment to invest in information technology and communication, so that external support is needed to integrate digital transformation into the company’s strategy. therefore, chen et al. (2022) recommended that the government should collaborate with educational institutions to create educational programs, do training, and use the internet as a source of knowledge for MsMEs. 2.2. Hypothesis development 2.2.1. Financial bootstrapping and financial performance Entrepreneurship is synonymous with the activities of analyzing opportunities, gathering resources, and creating value to develop a business (lans, 2020). to realize this opportunity, MsME entrepreneurs need a certain amount of funds, both from internal and external sources. Banks are often considered the main providers of external funds for MsME entrepreneurs (Berger & udell, 2006). however, ironically, MsMEs often have difficulty accessing external financing due to problems with information asymmetry between entrepreneurs and funders regarding business prospects and the company’s financial instability, especially for female entrepreneurs (arshad, 2023). in fact, in many cases female entrepreneurs are given stricter credit requirements, guarantees, and higher interest rates than male entrepreneurs (Malmström etal., 2017; naegels etal., 2018). Businesses managed by male entrepreneurs are considered more bankable because male entrepreneurs are considered more ambitious and have better entrepreneurial skills compared to female entrepreneurs (Kanze et al., 2018). in addition, female entrepreneurs often do not want to take risks, so they tend to rely on safer financing (ginesti etal., 2018). this is reinforced by several studies showing that female entrepreneurs are less likely to apply for credit than male-owned MsMEs (galli etal., 2020; Moro etal., 2017). in examining the obstacles to banking access and the reluctance to access banking by female entrepreneurs above, it conveys that financial bootstrapping is important for female MsME entrepreneurs. Even during times of crisis when sales decline, female entrepreneurs can rely on financial bootstrapping to meet their capital needs (neeley & van auken, 2010). (Mou et al., 2020) explained that financial bootstrapping is an effective and efficient MsME financing strategy. Financial bootstrapping can prevent entrepreneurs from relying on financing in the form of debt, venture capital, or other forms of external financing, thereby reducing their capital costs (Fatoki, 2014; Mittal & raman, 2021). thus, bootstrapping will not only be a source of cheap financing for MsME operational activities, but it will also have an impact on sustainability and improve business performance (Jones & Jayawarna, 2010). several previous studies also revealed that financial bootstrapping has a positive effect on financial performance (al issa, 2020; rita etal., 2021). therefore, female entrepreneurs who practice financial bootstrapping can ensure the smooth running of business operations (for example: the procurement of materials and the fulfillment of other short-term obligations), so they are thought to be cogEnt BusinEss & ManagEMEnt 5 able to improve their financial performance. Based on the explanation above, the first hypothesis is formulated as follows: h1: Financial bootstrapping has a significant positive effect on financial performance among female MsME entrepreneurs. 2.2.2. Digital transformation and financial performance the use of information technology can facilitate the physical activities of MsME entrepreneurs by changing manual transactions into digital transactions, so that business processes become more effective and efficient. Digitalization helps and at the same time facilitates search and purchase activities for raw materials, marketing, payment transactions, access to financing, product/service innovations, and monitoring of business financial conditions for business development. apart from that, digital transformation can also reduce costs by optimizing internal processes through job automation, reducing the use of physical documents by switching to electronic documents, etc. technology is an inseparable part of the development of knowledge, tools, techniques, and systems within a company to produce, manufacture, and distribute goods and services appropriately to customers (cannas, 2023). thus, the digitalization of MsMEs can greatly facilitate the overall business activities. Digitalization can certainly improve financial performance (i.e. growth in turnover, profits, and operational efficiency) (Ezeokoli etal., 2016), and productivity (Mubarak et al., 2019). referring to the benefits of applying information technology for business development as revealed by previous research, MsME entrepreneurs (including female entrepreneurs) need to do digital transformation. the use of information and communication technology can support and facilitate daily business operations for female entrepreneurs (anggraini et al., 2023). however, empirical facts indicate that there is still a gender gap in digital transformation (Buyannemekh & chen, 2021). Digital gender-based division was defined by abu-shanab and al-Jamal (2015) as inequality in opportunities to use and access digital technology between male and female. Females are considered to have significant privacy risks when sharing information, leading to reluctance to adopt digital transformation (lin & Wang, 2020). Besides that, it is also more difficult for female to make changes unless there is encouragement from the family (chaudhary & Dutt, 2022). thus, female entrepreneurs who engage in digital transformation have higher competitiveness compared to other female entrepreneurs. Fauzi etal. (2021) found that female entrepreneurs who digitally developed their businesses were able to survive longer than their competitors who did not conduct digital transformation. Mangifera and Mawardi (2022) also backed the findings of the positive impact of digital transformation on the financial performance of culinary MsMEs, in that the use of internet technology could boost sales and profits during the pandemic. Based on the explanation above and supported by previous research, the second hypothesis is put forth as follows: h2: Digital transformation has a significant positive effect on financial performance among female MsME entrepreneurs. the causality path between the independent and dependent variables is shown in Figure 1. this research places financial bootstrapping (FB) and digital transformation (Dt) as independent variables and Figure 1. Conceptual model. Source: self-constructed (2023). 6 M. r. rita anD p. Kinasih YEKti nastiti financial performance (Fp) as the dependent variable. to filter the influence of other independent variables that can influence financial performance, the research controls entrepreneurial characteristics and business characteristics consisting of entrepreneurial age (age), entrepreneurial experience (Exp), and business age (Year), in reference to Fasci and valdez (1998) and inmyxai and takahashi (2010). 3. Research methodology 3.1. Sample retrieval and data collection this research sample consists of culinary MsMEs which are managed by female in surakarta, salatiga, and semarang, indonesia. Based on the results of initial visits to the field in the three cities selected as research locations, the majority of MsME owners in the culinary sector are managed by female who still face obstacles in funding and adopting digital technology. as for considerations in choosing the cities, apart from being widely known as culinary tourism destinations in indonesia, semarang and surakarta have been determined by the Ministry of tourism and creative Economy as culinary tourism destinations. in addition, the city of salatiga was chosen as a city of gastronomy in central Java by unEsco so it is hoped that it can show the development of the culinary businesses in indonesia. culinary businesses were chosen because of their ability to sustain themselves and develop during the coviD-19 pandemic. Based on initial observations made by researchers that females are predominately MsME owners in the culinary sector in these three cities and considering that female entrepreneurs still face tougher challenges in running their businesses (arshad, 2023; asiedu et al., 2013; Yudiastuti et al., 2021) than their counterparts, this research aspires to focus on female entrepreneurs. the targeted sample size was 60 MsMEs in each city. purposive sampling was used with inclusion criteria: (1) the business owner was female, (2) the business had been operating for at least two years before the coviD-19 pandemic, and (3) the business was the main source of income. the data was collected through a field survey using a questionnaire which was divided into two main parts. the first section focused on the demographic details of the respondents, including their age, work experience, and education. the second part discussed the dependent variable—financial performance— and the independent variables—financial bootstrapping and digital transformation. next, six enumerators were involved in the field data collection process. prior to the study, all enumerators underwent training to ensure a clear understanding of the research objectives, questionnaires, field conditions, and effective data collection methods. the field research took two weeks, where each enumerator’s task was to interview 30 respondents in certain cities to meet the allocated timeframe, with a total target of 180 sMEs. however, eight questionnaires were deemed inadequate regarding the consistency and completeness of responses and were therefore excluded from the analysis. consequently, this study used data from 172 sMEs. this sample size met the minimum requirements as recommended by hair etal. (2014). they suggested that a minimum of 100 samples is required for a structural Equation Model with ≤5 constructs, each consisting of >3 items with communality values ≥0.6. table 1 presents the detailed profile of the respondents. the majority of the respondents fell into the 30-50 years age group (40.7%). regarding their entrepreneurial experience, 36.6% had more than a decade of such experience, and 47.1% of the respondents had a high school diploma or a vocational school degree. 3.2. Ethical considerations prior to the survey, the researchers have received approval from the Ethics committee of the Directorate of research and community service of universitas Kristen satya Wacana in May 2023 to conduct the study. the selected respondents were given an introduction about the research through a field survey letter and an informed consent form before answering the research questionnaire. this letter is included at the beginning of the research questionnaire and states the respondent’s willingness to complete the research questionnaire and voluntary provide additional information according to the actual conditions. the letter of consent also mentions that the obtained data only will be used for research and scientific publication purposes. the personal data (the respondent’s name or company) will not be included or cogEnt BusinEss & ManagEMEnt 7 shared with a third party. the selected respondents have the option (yes or no) to become participants in this research. 3.3. Variable measurements the conceptual framework in this research consisted of three constructs, each of which was proxied by several items based on previous research. the responses were measured using a 7-point likert scale (from 1 ‘strongly Disagree’ to 7 ‘strongly agree’). the first construct, financial bootstrapping is defined as a method of financing a business without relying completely on long-term external sources of financing, and it was measured using four items modified by Winborg and landström (2001) and Wing (2010). the second construct, digital transformation, refers to utilizing digital technology to support business operations and provide customer service, which was proxied by four items developed by the researcher. For the third construct, considering that most MsMEs do not have financial reports that can be used to track financial performance data, this research relies on subjective assessments from MsME actors. For the purposes of measuring financial performance, it is defined as the achievement of operational results measured in monetary terms which are proxied by four items modified from purwanto etal. (2022). the empirical indicators for each construct are listed in table 2. to ensure the quality of the measurements, a pre-test involving 63 respondents was carried out before the field research. the results revealed that all the indicators are valid and reliable, with loadings exceeding 0.70 and cronbach’s alpha (ca) values exceeding 0.70. however, feedback from the pre-test suggested that certain questions had to be rephrased to make them simpler and easier to understand. 3.4. Data analysis to test the causality between the variables empirically, this research applied the following estimation model: FP =++ ββ δ 12 1 FB DT (1) FP FB DT Age Year=++ + + + ββ β β β δ 34 5 6 7 2 exp (2) Table 1. Description of the sample. socio-demographic characteristics N (%) entrepreneur’s age up to 30 years old 44 (25.6 %) More than 30 - 50 years old 70 (40.7%) More than 50 years old 58 (33.7%) ∑ 172 (100%) entrepreneurial experience up to 5 years 61 (35.5%) More than 5–10 years 48 (27.9%) More than 10 years 63 (36.6%) ∑ 172 (100%) Last education elementary school 24 (14.0%) Middle school 22 (12.7%) High school/ vocational high school 81 (47.1%) Higher education 45 (26.6%) ∑ 172 (100%) Business Age up to 5 years 63 (36.6%) More than 5–10 years 47 (27.4%) More than 10 years 62 (36.0%) ∑ 172 (100%) Average Turnover/Day Before the CoViD-19 pandemic Rp 1,187,314 During the CoViD-19 pandemic Rp 520,250 14 M. r. rita anD p. Kinasih YEKti nastiti Mabonga, M. W. (2020). Financial bootstrapping strategy and sustainability of small and medium enterprises in Kanduyi sub-county. Kenya. 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