Effect of Covid-19 on Small and Medium Scale Businesses in Nigeria

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue XI, November 2021 | ISSN 2454–6186

Effect of Covid-19 on Small and Medium Scale Businesses in Nigeria

Dr. Ernest Jebolise Chukwuka¹, Dr. Fidelis U. Amahi^2
1Department of Business Administration, Michael and Cecilia Ibru University Delta State, Nigeria
²Department of Accountancy, University of Delta, Agbor, Nigeria

Abstract: The study examined the effect of COVID 19 on small and medium businesses in Nigeria. The objective of the study is to investigate the impact of COVID-19 on small and medium businesses. To ascertain the impact of government COVID-19 safety protocols on the performance of small businesses and to find out ways of minimizing the impact of COVID – 19 on small and medium businesses in Nigeria. A descriptive survey research design was adopted for the study. The sample of the study was achieved using random sampling technique. The sample for this study was 400 respondents. These respondents were selected from proprietor/ proprietress of small and medium scale enterprises in Asaba. The instrument used to collect data was the questionnaire. The data collected were analyzed using simple percentage, mean, standard and chi square. The overall findings of the study are that Covid-19 safety protocols have significant and positive effect on SMEs performance. The study discovered that Covid-19 impact on small and medium businesses can be reduced through increase engagement on digital online businesses; the study also reveals that shortage of supplies, production stoppage and suspension, reduces product lines/ingredient and short−term change in production are impact of COVID – 19 on small and medium businesses in Asaba Metropolis and the study also discovered that government guidelines related to Covid19 has impact on performance of small businesses which are inflation, smooth transaction, prevention of transmission of the virus in the cause of transaction and reduction of crowd in business environment.

Keywords: Covid-19, Small and Medium scale businesses, SME performances, Safety protocols, digital businesses

I. INTRODUCTION

The coronavirus or COVID-19 pandemic has caused more than enough damage to all spheres of human endeavors at the international level and Nigeria in particular. In Nigeria COVID-19 pandemic has resulted in lockdown in key political and commercial capitals of the country (i.e. Lagos and Abuja). Several attempts were made in other to contain the COVID-19 health threat (Rabiu, Kabiru, Ahmad and Samaila (2020). It is undeniable that, there are several other disruptions caused by COVID-19 particularly for public and private sectors where there are closures of business activities (Odinaka & Josephine, 2020). It has greatly affected Nigerian economy in particular. The negative impact of COVID-19 manifests on the economic and business activities in the region. Undoubtedly, the health effect of the COVID-19 is an important part of economic consequence of COVID-19 because it is very devastating for trade and business transactions.

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