IMPACT OF COVID 19 PANDEMIC ON SMALL AND MEDIUM SCALE ENTERPRISES IN ABA, ABIA STATE

Adaobi Juliana Nwadike, Prof. C.N. Anumudu

Abstract


This study is situated against a backdrop of the COVID-19 pandemic restrictions which paralyzed the world economy for most of the year 2020. The small and medium scale enterprises are worst hit. This study specifically identifies the effect of COVID-19 pandemic on the financial performance of SMEs in Aba commercial city and secondly, to ascertain the impact of the COVID-19 restrictions on SMEs turnover in Aba, South Eastern Nigeria. The logit model was utilized to achieve the set objectives of the research work. Data on business type, income, turnover, coping strategy, gender of business owner, level of education, and power supply were collected first hand through face to face interviews in the commercial city of Aba. Findings from the estimated models reveal that COVID-19 restrictions have an adverse effect on SMEs income in the period under review. The study also established that COVID-19 restrictions had a negative impact on employers’ turnover in the period under consideration. The study recommends that efforts to promote SMEs should be holistically addressed and must include contingency funds set aside to support SMEs’ finances in the face of global emergencies like the COVID-19 pandemic.


Keywords


COVID-19, Pandemic, Economic Impact, SMEs, Aba Commercial City.

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