THE IMPACT OF COVID 19 ON SMALL AND MEDIUM SCALE BUSINESS ENTERPRISES

 

There is no generally acceptable definition of SMEs and the definition or explanation depends on the context by which it is given. Hence, there is no perfect way of defining SMEs in developing countries despite the fact that, it has been playing prime role on the overall economy (Gibson & Van der Vaart, 2008). 

Notably, small and medium enterprises (SMEs) are the businesses meant for provision of goods and services in the aspect of manufacturing, agriculture, shoe making, computer skill, tailoring and other service sectors. 

The purpose of SMEs can be entrenched with specific emphasis on the investment and employment in order to reduce the rate of unemployment and poverty as literature actually explains . 

The negative impact of COVID-19 manifests on the economic and business activities in the country. More so, it should be reiterated that, the COVID-19 pandemic has affected small and medium enterprises (SMEs) as a result of the lockdown and shutdown of business transactions in the country. As a result of this challenge, this has made many people to advocate for an alternative way of addressing it especially in providing supportive response for survival of small and medium enterprises (SMEs).

Most business transactions since the outbreak of COVID-19 recorded low sales whereby most SMEs reported decline in the source of income.

 Prior to the outbreak of COVID-19, literature has shown a concern about the challenges of financing of SMEs towards its effective performance.It has also enlightened people and increased their insight on the influence of social media for business .

 Amidst Covid 19 lockdown most flexible businesses alternatively use Social media  creatively to Advertise,Market and Generate Sales.

Edogun Efosa

Foreign Languages

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