DIVERSIFICATION STRATEGY TO MAINTAIN SME BUSINESS SUSTAINABILITY IN YOGYAKARTA

SME's Business sustainability Diversification strategy Covid-19

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June 30, 2024

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This paper discusses the diversification strategy practices carried out by SMEs in DIY Province to maintain the continuity of their business. This was done because of the COVID-19 pandemic which caused reduced sales and demand for SMEs, especially in the fashion and craft industry sectors. The objects observed for writing this paper are four SMEs in the fashion and craft industry sector which are registered on the website of the Ministry of Cooperatives and Small and Medium Enterprises as SMEs that produce masks, hand sanitizers and personal protective equipment (PPE) needed to prevent the spread of COVID-19. 19. The results of the observations made show that the four SMEs implemented concentric diversification and market diversification strategies to minimize business risks and maintain business sustainability.

JEL Classification: M31, M10