Impact of COVID-19 on Small- and Medium-sized Enterprises

Abstract

The COVID-19 pandemic has severely impacted global business operations. Most importantly, practitioners of small- and medium-sized enterprises (SMEs) have been facing devastating economic shocks emanated from the COVID-19 pandemic. The purposes of this study are to explore the business status of SMEs, business sustenance period, types of problems faced by the practitioners and impact on production volume, due to the COVID-19 pandemic. For these purposes, primary survey data from 284 SMEs in Bangladesh are collected in this study. The survey data are descriptively analyzed using appropriate graphs. This study finds that SMEs are facing several problems such as demand fall (92.96%), cancellation of orders (85.56%), liquidity crisis (74.30%), delayed transportation (72.53%), unsecured working environment (68.31%), raw material shortage (63.73%) and employees’ absenteeism (62.67%). The SMEs face beyond 40% decrease in production volume against the pre-pandemic year. Furthermore, this study formulates several strategic measures, which will certainly guide policymakers and practitioners to combat the COVID-19 economic shocks for the SMEs and also for other industries.