Effect of Covid-19 Pandemic on Small and Medium Scale Enterprises in Nigeria
No Thumbnail Available
Date
2022-12
Journal Title
Journal ISSN
Volume Title
Publisher
Lead City University
Abstract
Abstract
The purpose of this research is to learn how the COVID-19 pandemic has affected Nigeria's SMEs, particularly those that have been forced to close their business due to the mandated lockdown designed to curb the spread of the virus. Quantitative data was collected from 169 randomly selected SMEs through a standardised series of questionnaires to obtain the data. The investigation revealed that the businesses' production and sales fell by a moderate amount in 2020 due to the lockdown. But in that same year, the studied businesses saw a surge in cancelled orders and delayed shipments. In light of the foregoing, the report advises policymakers and all stakeholders in SMEs in Nigeria that, while the pandemic is still underway, a considerable drop in operations and sales of SMEs will convert into a cash-trap. This would make Nigerian SMEs even more susceptible to various types of external shocks. Therefore, the government should allocate a contingency fund for small and medium-sized enterprises (SMEs). Policymakers should also consider deferring or waiving taxes, reducing loan rates, and other measures to help small and medium-sized enterprises (SMEs) weather the COVID-19 pandemic and recover thereafter.
Keyword: SMEs, COVID-19, Economy, Lockdown, Government policy
Word Count - 188
Description
Keywords
Citation
Kate Turabian