Abstract
Research background: The ongoing Covid-19 pandemic has created irreversible damage to the world economy. Businesses ranging from local shops to multinational companies are suffering extensively due to the lockdowns in place. Amon this the unorganized sector is the worst hit as majority of the stakeholders have no alternative income. This makes a study in SMEs much more necessary as this sector is extremely volatile and even the slightest fluctuations in the economy causes huge losses for them. Purpose of the article: This study is aimed at analyzing the degree of impact of the ongoing Covid-19 pandemic on SMEs globally. Methods: This research, by design, is descriptive and exploratory and its objective is to determine, based on the appreciation that managers or those responsible for the financial management of SMEs have, how it impacts to their finances the health crisis caused by COVID-19 for the development and investment of their business. Findings & Value added: The results obtained in the research show that the health crisis caused by the COVID-19 has been a challenge for SMEs because it has generated a strong crisis, but they have shown cautious in the measures to face it, and financial management strategies aimed at avoiding indebtedness. In conclusion, the management of SMEs is aware that to face the new modality it is necessary to carry out administrative and financial management based on foreseeable strategies, considering the changes aimed at the development and investment of their businesses.
Highlights
The socioeconomic and productive impact of COVID-19 will surely be the subject of study for years, the world is still in the middle of the first outbreak and a new outbreak
The results show that the situation of SMEs in the commerce sector during the contingency generated by COVID-19 has been affected
The results show that economic activity during the period of March 20 as of August 20, 2020 of SMEs in the commerce sector during the contingency generated by COVID-19 has been affected, the above allows suppose that in order to face it, financial management strategies were rethought
Summary
The socioeconomic and productive impact of COVID-19 will surely be the subject of study for years, the world is still in the middle of the first outbreak and a new outbreak. The United Nations set out from the beginning to monitor permanently the situation of the business segment that generates a bulk of global employment (Belacín and Arnoletto, 2019), carrying out surveys among companies with up to 1000 employed persons, under the Coronavirus Research Program: Impact on SMEs, production and employment. They received more than 6,000 responses, through surveys at the firm level among the Primary sectors (Agriculture / Livestock / Forestry / Fishing / Mining), Services, Commerce, Manufacturing Industry and Construction, throughout the entire national territory. At the time of preparing this work A sixth survey is in the field that inquiries about operability, staff activity, evolution of billing and remote work
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