Abstract
The impact of the world COVID crisis on small businesses was extremely destructive. Governments of different countries being aware of critical importance of small business sector to national economies and societies as a whole undertook measures aimed at SME support. While the devastating effect of COVID on small business is quite comparable across the world, the scale and efficiency of government protective measures differ a lot in various countries. In this paper we made an attempt of comparative analysis of governmental efforts to protect small business economies on the example of SMEs in three countries: the U.S., China, and Russia.
Highlights
Small and medium-sized businesses are the major drivers of global economic growth
While the devastating effect of COVID on small business is quite comparable across the world, the scale and efficiency of government protective measures differ a lot in various countries
This “support hierarchy” apparently correlates with the role that small businesses play in economies of three countries
Summary
Small and medium-sized businesses are the major drivers of global economic growth. Over 90 percent of the business population represents small- and medium-sized businesses (SMEs) (Ortegon, 2019). Of the $2.7 trillion dollars allocated toward supporting the US economy due to COVID-19, more than $700 billion was directly earmarked and deployed to small businesses (Peterson & Duehren, 2020) This was the largest fiscal stimulus ever approved. Banks are encouraged to issue more loans and provide more financial services to SMEs. In a recent case, Bank of China Fullerton Community Bank (BOC-FCB) issued a 2 million yuan, 1-year loan to a small textile manufacturer in Zhejiang at a rate of 6% without a guarantee or mortgage in order to help the manufacturer resume production. The complex financial, socio-economic, and administrative measures taken by Chinese government clearly help small and medium enterprise sector in stimulating domestic demand, improving employment, and getting financial support for SMEs. there is still long way to go. The COVID consequences and challenges will definitely be long term”
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