VENTURE CAPITAL DYNAMICS: EXPLORING PROFITABILITY BOOSTS FOR COMPANIES IN CRISIS
Abstract
The COVID-19 pandemic has exerted substantial impacts on various facets, notably health and economics. Companies have adopted diverse strategies, including seeking external financing, to enhance resilience and performance during these turbulent times. This study investigates the effects of venture capital infusion on a company's profitability in the context of the pandemic. Drawing from Ratna (2013) and Kurniawati (2017), the study emphasizes the critical role of finance companies, particularly amidst intense business competition, as essential sources of funds for investment, working capital, and economic growth.
Profitability serves as a cornerstone for a company's sustenance and advancement, influencing operational and maintenance aspects as articulated by Marlinah (2014). Analyzing financial statements and profitability ratios, the study assesses the relationship between venture capital injection and net income generation, which indicates managerial efficacy and overall company performance. A case in point is presented through PT Buana Finance Tbk, highlighting the industry's challenges and experiences during the initial wave of the pandemic (Agustine, 2015). This research contributes to understanding the dynamics of financial strategies during crises and offers insights into sustaining profitability within the financing sector. By evaluating the correlation between external financing and company performance, this study provides actionable insights for firms navigating uncertain economic landscapes
