EFFECTS OF ECONOMIC ENVIRONMENT UNDER COVID-19) ON THE PERFORMANCE OF SMEs IN NIGERIA’S FEDERAL CAPITAL TERRITORY, ABUJA

Abstract

The study examined the effects of economic environment under Covid-19) on the performance of SMEs having observed that businesses including SMEs are struggling to adapt to the new normal imposed by the novel disease. Thus, the study hinged on the dynamic capability theory examined the effects of economic environment under Covid-19) on the performance of sachet water production businesses in the Federal Capital Territory, Abuja. The study employed the convenience and simple random technique to select and administer copies of questionnaire on 180 respondents. With a response rate of 77.22%, the collated data were analyzed using descriptive and inferential statistical techniques including simple percentage (%); the Mean; Standard Deviation (SD), the ANOVA and Multiple Regression techniques via the SPSS. Overall, the results indicated that economic environment under Covid-19) significantly affected the production outputs and the sales volumes of SMEs in the FCT. Most specifically, the results indicated that the different inflation had the most effects on the volumes of outputs and sales by the selected businesses while the decline in personal savings had the least. Consequently, the study recommended that SMEs should continually adapt and adjust to the changes in the external environments in order to survive, compete, grow and expand.