Determinant Factor Analysis of Financial Performance of Micro, Small and Medium Enterprises with Social Capital as a Moderating Variable During COVID-19 in Aceh, Indonesia

Abstract This study analyzes the problem factors affecting Micro, Small, and Medium Enterprises (MSMEs) performance with social capital variables. The problems are related to developing MSMEs’ financial and non-financial performance and are considered inseparable from various internal and external influences. This research is a quantitative-qualitative research with primary data. The utilization of questionnaires and interviews as methods for data collection. The data analysis technique used was a statistical analysis based on partial least squares (PLS). The study’s results found that internal and external factors had a significant positive effect on the financial performance of MSMEs. The E-commerce factors and social capital significantly positively affected the financial performance of MSMEs. However, the colonial capital did not strengthen the relationship between internal variables, external, and E-commerce on the financial performance of MSMEs.