Abstract
The Coronavirus (Covid-19) outbreak has affected all business sectors. The state of emergency, limited movement order and social distancing are amongst the preemptive efforts of the Japanese government to safeguard public health. While recognizing the importance of preventing the immense spread of the virus, there are certain unexplored impacts of the movement control measure on the SMEs in Japan. The objective is to scrutinize the repercussions of the Covid-19 on SMEs in Japan. The study applies a qualitative approach through the analysis of the secondary data from the internet, as well as from the Japanese official government and business association. this article intends to scrutinize the actual implications of the Japanese’s state of emergency on SMEs businesses and to identify the survival strategies of the business. Thus, this study differs from other methods such as other quick online surveys that commonly conducted by market surveys. Our findings contribute towards the actual challenges faced by the SMEs during the pandemic crisis.
Highlights
2020 is a challenging year for most countries
Eligibility criteria: The Hygienic Environment Change Special Loan can be provided by Japan Finance Corporation (JFC) to any hotel, restaurant or cafe business enterprise if (i) it is in financial difficulty due to the deterioration of business conditions caused by the COVID-19 pandemic, and (ii) it meets both of the following requirements: a) its monthly revenue has decreased by 10% or more in the most recent month compared to the corresponding month of the previous year or year preceding the previous year and is likely to decrease further in the future; and b) it is expected to rebound from the downturn and, in the medium to long term, improve its market situation
Eligibility criteria: Interest subsidies may be given to any small and medium enterprises (SMEs) if: a) It has used one or more of the above applicable JFC lending schemes or the Crisis Response Loan of SCB/Development Bank of Japan (DBJ) b) Its revenue has fallen by 20% or more due to the outbreak of COVID-19
Summary
2020 is a challenging year for most countries. The presence of Coronavirus disease 2019 (Covid19) is a major threat that has been causing paralysis of the world economy. While the second wave of Covid 19 outbreak in Japan started in March where MHLW officials announced 71 people have tested positive including 41 cases in Tokyo alone, Governor Yuriko Koike held an emergency press conference following the sudden increase This is where the government started to restrict people's movements by asking them to work from home if possible and refrain them from going out as much as possible especially on weekdays as the situation is getting worse and the number of infected people keep on increasing. These actions taken by both government and their people have assisted them in dealing with Covid 19, even though recent cases are still reported daily These actions that have been taken are seen as appropriate against Covid 19, but at the same time, it has affected the economic journey in Japan, especially in SMEs sector. The total number of companies exits due to bankruptcies in 2020 has decreased by 8 percent annually from 3,304 firms in the last year from January to May to 3,038 firms in the same period last year
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