Abstract

SMEs are considered huge boosters to the economy of Uganda. They serve as the engine and driving force for growth, development, innovation, economic prosperity and wealth creation of Uganda. The study aimed at establishing the upshot of COVID 19 on the operations and sustainability of SMEs in Uganda with a view to creating a lucid model for successful SMEs operations and improved performance. The study examined factors for efficient operations and sustainability for SMEs in Uganda. The study embraced a positivist quantitative approach with correlational design and cross sectional, survey design, underpinned on the interpretivism philosophy. The study used a sample of 205 SMEs working in Kabale, Kisoro, Rukiga, Rukungiri and Ntungamo. The findings revealed that COVID19 pandemic accounted for a significant variance in the operations and sustainability of SMEs in the selected boarder districts in Uganda. The study confirmed the hypothesis that the effects of COVID19 pandemic have positively affected performance, operations and sustainability of SMEs. The pecking order theory was largely supported by the study and resource based view lays the ground in explaining, sustainability, performance and operations of SMEs in Uganda. The study recommends that the respective government of Uganda authorities and partners offer appropriate liquidity intercessions to support SMEs in handling instant liquidity encounters, to avoid closures and bankruptcies.   Key words: COVID 19, operations, performance, sustainability, small and medium enterprise, business.

Highlights

  • On 11th March 2020, the World Health Organization declared COVID-19 a global pandemic

  • The study findings revealed that, in the period of March to May, revenue declined due to COVID-19 across all SMEs by 71%, with estimated average sales reduction at 70%, the SMEs hoped to continue operational

  • The results presented revealed that COVID 19 significantly explains 45.9% of the total variance in Operations of SMEs from the period under consideration (Adjusted R2=0.459, p=0.00)

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Summary

Introduction

On 11th March 2020, the World Health Organization declared COVID-19 a global pandemic. COVID-19 has affected the operation of businesses of all types and sizes globally, regionally, at national and local levels. The Economic Policy Research Centre (2020) survey alludes that SMEs faced a greater deterioration in business undertakings compared to larger enterprises majorly because of their vulnerable operational procedures and inability to implement core CPOVID19 preventive measures and standards. Have all SMEs been affected the same way? This study explored deep into the margin of impact for service sector firms and those in agriculture and manufacturing while maintaining the assumption that the severity of COVID-19 on SMEs has been felt across the spectrum

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