EFFECT OF COVID-19 PANDEMIC ON SME PERFORMANCE IN NIGERIA

Abstract

Small and Medium Scale Enterprises (SMEs) are undeniably playing a significant role in the economic development of many countries globally. This role performed by the SMEs has been distracted by the global pandemic COVID-19 (Coronavirus). The pandemic brought about lockdown, movement restrictions, market closure, social distancing, etc. Thus, these restrictions and controls of the movement have particularly affected small and medium enterprises (SMEs) in Nigeria. This study aims to examine the effect of the coronavirus pandemic on the small and medium scale business in Yobe State, Nigeria. The study adopted a survey research design. Data were obtained through a questionnaire administered to 278 SMEs in Yobe State. The data were analyzed using descriptive and regression analysis using SPSS. The findings of the study indicate owners/managers of SMEs that participated in the study rated the variables of COVID-19 (lockdown, movement restriction, market closure, and social distancing) on a high level. The result further revealed that all the variables in the study correlate with SME's performance. Interestingly, the findings indicate three variables have a significant positive effect on SME's performance, the highest among is the market closure, followed by movement restriction and lockdown accordingly. While social distancing shows no significant effect on SME's performance. Therefore, it is recommended that proactive plans should be put in place for SMEs in anticipation of events such as COVID-19 that can hurt businesses. Finally, future research should consider other related variables that have not been considered in this study.