Effect Of Coronavirus On Small Medium Enterprises Performance In Benin City
Abstract
This study was on effect of coronavirus on small medium enterprises performance in Benin City. The total population for the study is 200 staffs of selected SMEs in Benin city. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made managers, secretaries, sales representatives and junior staffs were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies.
Chapter one
Introduction
- Background of the study
Small Medium Enterprises (SMEs) play a crucial role for economic development of Nigeria. They are a vital engine in Nigeria economy, since they drive growth, create employment especially among youth and spearhead innovation. They provide a customer base to larger companies across the supply chain and supply vital goods and services to companies and households, helping to keep the wheels of the economy in motion. In addition, they can leverage their agility to design and incubate new technologies and business models to build a better future. Many of Nigeria’s SMEs have the potential to become tomorrow’s large corporations, that the continent needs to continue on its path to growth and prosperity. From a trade perspective, intra-African trade is not likely to improve if factors that inhibit the participation of SMEs are not addressed. However, many studies reveal that SMEs growth in Nigeria are constrained among others by lack of financial support, poor management, corruption, lack of training and experience, poor infrastructure, and insufficient profits. They are currently highly exposed to the negative impact of the Coronavirus disease (COVID-19). So, clearly, supporting their survival is crucial for mitigating the economic systemic impact, but also to sustain employment and to create the conditions needed for future growth, once the pandemic is over. The key objective of this paper is to analyze on how SMEs are affected in Nigeria by COVID-19 and to provide recommendation for mitigating the impact.
Small and Medium Enterprises (SMEs) have been heavily affected by the COVID-19 pandemic, due to the closures and reduced working hours recommended to curb the spread of the virus. This dreaded virus has caused a negative impact on the global economy, which has led to the crisis in businesses across the globe. Aifuwa, et al. (2020) submit that coronavirus disease has negatively affected both the financial and non-finance performance of business in Nigeria. Based on the background of the study, the study wants to investigate the effect of coronavirus on small medium enterprises performance in Benin city
Statement of the problem
COVID-19 has caused a major economic shock. This study will explore the impact of COVID-19 on the small business landscape in Nigeria, focusing on three questions. First, how did small businesses adjust to the economic disruptions resulting from COVID-19? Second, how long did businesses expect the crisis to last, and how do expectations affect their decisions? Third, how might alternative policy proposals impact business and employment resilience?
Objective of the study
The objectives of the study are;
- To ascertain the effect on COVID19 on small medium enterprise performance in Benin city
- To ascertain how did small medium enterprises adjust to the economic disruptions resulting from COVID-19 in Benin city
- To ascertain the effect of COVID19 on Nigeria economy
Research hypotheses
the following research hypotheses were formulated by the researcher;
H0: there is no effect on COVID19 on small medium enterprise performance in Benin city
H1: there is effect on COVID19 on small medium enterprise performance in Benin city
H02: there is no effect of COVID19 on Nigeria economy
H2: there is effect of COVID19 on Nigeria economy
Significance of the study
The study will be very significant to students and the policy makers. The study will give a clear insight on the effect of coronavirus on small medium enterprises performance in Benin city. This study will explore the impact of COVID-19 on the small business landscape in Nigeria, focusing on three questions. First, how did small businesses adjust to the economic disruptions resulting from COVID-19? Second, how long did businesses expect the crisis to last, and how do expectations affect their decisions? Third, how might alternative policy proposals impact business and employment resilience?
Scope and limitation of the study
The scope of the study covers effect of coronavirus on small medium enterprises performance in Benin City. The researcher encounters some constrain which limited the scope of the study;
- a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
- b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
- c) FINANCE: There is no enough finance to source for the materials, thereby limiting the study
1.7 Definition of terms
Coronavirus: Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus.
SME: Small and medium-sized enterprises or small and medium-sized businesses are businesses whose personnel numbers fall below certain limits. The abbreviation “SME” is used by international organizations such as the World Bank, the European Union, the United Nations and the World Trade Organization.
Business Performance: Is a set of analytic processes that enables the management of an organization’s performance to achieve pre-selected goals.
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