Abstract
COVID-19 leads small and medium-sized enterprises (SMEs) to survive very hard. The development difficulties of SMEs lead to weak employment and GDP growth in various countries. In the process of COVID-19's continuous spread, what is the major reason for the difficulties of SMEs? This paper hopes to answer this question by studying SMEs in Beijing. On this basis, this paper uses structural equation model (SEM) to study the relatively fast recovery of SMEs in Beijing, China, to explore the factors affecting SMEs in the pandemic. After detailed desk research and interviews with relevant entrepreneurs, this paper collects 234 valid questionnaires from SMEs in various industries in Beijing with the help of Federation of Industry and Commerce and Chamber of Commerce in Beijing. Then the data is analyzed with the SEM, which shows the relationship between cash flow from financing activities, markets, employees, costs, government policies and the impact of the pandemic. Finally, an impact model of the pandemic on SMEs is established. The result of the model indicates that the direct effect of the pandemic on the market is the most prominent, and government policies can significantly reduce the negative impact of the pandemic on SMEs indirectly. Based on this, this paper puts forward some policy suggestions, such as the targeted issuance of consumption vouchers and the reduction of administrative barriers. This will enable megacities in various countries to improve policy support for SMEs and promote the recovery and development of SMEs.
Highlights
1.1 Background of the researchThe sudden spread of COVID-19 in early 2020 has disseminated rapidly, infecting various industries and sectors in more than 213 countries
The results of the path analysis show that the direct path coefficient of the impact of financing cash flow on the pandemic is significantly positive (ρ = 0.221, C.R. = 4.476, p
It can be seen that during the COVID-19, the supply of materials required for business operation is reduced, consumers’ demand for goods and services is decreased, which all hinder the business running of enterprises
Summary
The sudden spread of COVID-19 in early 2020 has disseminated rapidly, infecting various industries and sectors in more than 213 countries. Until the end of 2020, the cumulative number of confirmed cases worldwide has reached 91.5 million, and the cumulative death toll has reached 1.96 million. It has seriously affected the lives and health of people around the world and changed the daily routine of the public and society [1]. Research on the impact of COVID-19 on Chinese SMEs funders had no role in study design, data collection and analysis, decision to publish, or preparation of the manuscript Loss of small and medium-sized enterprises (SMEs) is severe: According to the report of the China Association of Small and Medium Enterprises, there has been a reduction in business income
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