Abstract

The declaration of a State of National Emergency due to the COVID-19 pandemic had an adverse and unexpected impact on micro and small enterprises in Peru. These businesses were limited in their access to the most conventional and widely used method of conducting transactions: physical markets. According to the results of the National Business Survey conducted during the first year of the emergency, only 8.1% of them were selling online prior to the pandemic. However, many of these companies began to adopt strategies involving the use of Information and Communication Technologies (ICT) and digital payment methods, such as e-wallets. Through the implementation of a two-stage econometric model, it has been shown that the adoption of digital strategies, previously achieved sales reach, and the availability of transportation means by firms are positively correlated with the likelihood of increasing sales made online.

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