International Journal of Research and Innovation in Social Science (IJRISS) |Volume VI, Issue IX, September 2022|ISSN 2454-6186
Chinwe Monica Madueke*, Stephen Maduabuchukwu Chukwuka, Joan Nwamaka Ozoh, Chidiogo Jane Akolisa, and Chika Priscilla Imoagwu
Department of Economics, Faculty of Social Sciences, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria
*Corresponding author
Abstract: The outbreak of COVID-19 Pandemic disrupted the Nigerian economy and brought the global economy to a standstill. The crisis led to a drop in production volumes and severe market circumstances as the epidemic continued to wreak havoc on the country, SMEs in the informal sector are battling to survive. This study examines the effect of COVID-19 government palliative on informal Small and medium enterprises (SMEs) in Anambra State, Nigeria. The researcher used purposive sampling technique and selected all informal enterprises in public places using questionnaire as an instrument for data collection which were distributed to 200 SMEs owners in Anambra State. Three commercial areas were selected namely Awka, Onitsha and Nnewi, 180 out of 200 questionnaires were viable. From the Research conducted, COVID-19 Pandemic was found to have a negative impact on volume of sales, revenue, and non-payment of wage during the Crisis. The finding also showed that most SMEs did not receive government palliative which would have help them in boosting the SMEs during the Pandemic, this make most of them to shutdown their business. Lastly, SMEs adopted some strategies like cutting the salaries of their staff during Covid 19 and laying off of workers (with no plan to recall them), and ensuring business continuity. This research recommends that government should support SMEs in informal sector in meeting their operational expenses as this will assist them in reviving and boosting their business which will help them increase their income as well as recoup revenue lost during the pandemic.
Key Words: Covid-19, Informal sector, Pandemic, Small and Medium Scale Enterprises (SMEs)
JEL Codes: I1, E2, H84, L32
I. INTRODUCTION
1.1 Background to the study
COVID-19 Pandemic is a serious disease that kept the world economy on a standstill. The pandemic was initially detected in Wuhan, China, in December 2019, and has since spread to almost every country on the planet (World Health Organization, 2020). In early 2020, COVID-19 global pandemic spread rapidly through North America, Europe, and East Asia, Europe and later it started affecting most countries in Latin America and Africa. As at February, 2021,112,209,815 were the total number of cases that were confirmed worldwide while the total number of confirmed deaths were 2,490,776 (WHO, 2021).