IMPACT OF COVID-19 ON SELECTED SMALL AND MEDIUM ENTERPRISES IN ENUGU STATE, NIGERIA

Abstract

The COVID-19 pandemic altered the global economic system and established a new normal; among otherthings, businesses were negatively impacted, with the household income of families suffering due to joblosses and business closures. The primary goal of the study is to analyze the impact of COVID-19 on smalland medium-sized businesses in Enugu State and how those effects affect household income. In order tocollect data, both primary and secondary sources were used. Two hundred (200) questionnaires were givento small- and medium-sized business owners as well as to households in the Enugu metropolitan. The datacollected were then analysed using a percentage and frequency table. The outcome demonstrates how theCOVID-19 pandemic has affected consumers' short- and medium-term purchasing power as evidenced bythe increased demand for vital commodities at the expense of non-essentials as a result of panic buying.Second, the COVID-19 pandemic-related decline in crude oil prices and the ensuing depreciation of thecountry's currency provides a significant issue for SME operators. Thirdly, a sharp and rapid drop indemand and revenue for small and medium-sized businesses (SMEs) has a negative impact on their abilityto operate and/or results in significant cash problems. Consumers also encounter income loss, fear ofspreading the disease, and increased uncertainty, all of which lead to decreased spending and consumption.The study concluded that the government and large corporations should keep taking action to mitigate theimpact of COVID-19 on enterprises and household income by securing investment and offering relief tofamilies