Vol. 11(5), pp. 123-131, November 2023 , 2023.

ISSN: 2384-6151

https://doi.org/10.14662/ijebm2023100

 

 

Full Length Research

 

Effect of COVID-19 Pandemic on Small Medium Enterprises (SMEs) Performance in Nasarawa State

 

Mercy Asheadzi Daniel1 and Amos Anyesha Audu2

 

1Department of Business Administration and Management, School of Administration and Business Studies, Isa Mustapha Agwai I Polytechnic Lafia, Nasarawa State. 2Department of Business Administration and Management, School of Administration and Business Studies, Isa Mustapha Agwai I Polytechnic Lafia, Nasarawa State.  

Corresponding Author’s E-mail: anyeshaamos@yahoo.com  

 

 

Accepted 25 August 2023

Abstract

 

The aim of this study was to assess the effect of covid-19 pandemic on the performance of SMEs in Nasarawa State. The study used descriptive survey design. An infinite population of SMEs owners in Lafia, Keffi and Akwanga was used as the study population out of which a sample of 400 respondents was selected. Purposive and simple random sampling techniques were employed. A self-designed 4-point structured questionnaire was used as instrument for data collection. The construct validity of the questionnaire was determined by experts while reliability of internal consistency was measured using Cronbach Alpha Coefficient where a value of 0.853 was obtained. Face-to-face method was used in administration of the questionnaire where 270 copies were retrieved and analyzed. The study used mean, standard deviation and Spearman Rank Correlation Coefficient as tools for analysis. The results of analysis revealed that lockdown protocol limit SMEs operations, physical distancing led to decrease in SMEs supplies and profit margin, restriction of movement reduced SMEs production and sales volume, cash trap and decrease in investment, market closure made the repayment of SMEs loans difficult. The findings showed that covid-19 infections caused a decrease in SMEs sales revenue, illnesses associated with covid-19 limit SMEs performance, Covid-19 quarantine affected SMEs profit margin and deaths due to covid-19 impacted negatively on SMEs growth. It was found that covid-19 pandemic palliatives, tax holiday and NGOs intervention during covid-19 help SMEs to bounced back strong and covid-19 financial assistance enhanced SME operations. The results indicated that covid-19 protocols and infections had significant negative effect on SMEs performance, while the coping strategies introduced significantly enhanced SMEs performance and concluded that covid-19 pandemic affected the performance of SMEs in Nasarawa State. The study recommended among others that government should ensure that appropriate measures are introduced so as to limit the impacts of future pandemics on the performance of SMEs in the State, the health sector should be well funded to enable it respond to challenges caused by outbreak of pandemics and Government and NGOs should ensure that SMEs affected by pandemic are provided with the needed assistance to reduce the burden of such challenges on the performance indicators of SMEs in the State.

 

Keywords: Pandemic, Covid-19 pandemic, SMES, Performance

 

Cite This Article As: Daniel, M.A., Audu, A.A. (2023). Effect of COVID-19 Pandemic on Small Medium Enterprises (SMEs) Performance in Nasarawa State. Inter. J. Econ. Bus. Manage. Vol. 11(5), pp. 123- 131, November 2023