An assessment of the effects of COVID-19 pandemic on performance of small and medium enterprises (SMEs) in selected townships of Lusaka province.
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Date
2024
Authors
Miti, Pherguson Sunday
Journal Title
Journal ISSN
Volume Title
Publisher
The University of Zambia
Abstract
The outbreak of the Coronavirus of 2019 (COVID-19) Pandemic affected the entire globe socially and economically. The Small and Medium Enterprises (SMEs) were not spared. This study aimed at assessing the effects of the COVID-19 Pandemic on the Performance of SMEs due to the significant economic roles they play. The Zambian economy comprises 97% SMEs, who create employment for over 88% of citizens and contribute 70% of the GDP. Therefore, the objective of the study was to assess the effect of the COVID-19 Pandemic on the SMEs in selected townships of Lusaka Province. The snowballing method was used to collect data using the mixed method approach and SPSS version 20 for data analysis. The results showed that 62.9% of the SMEs employed less than 5 employees, 17% employed between 5 and 10 employees and 19.98% employed more than 10. From the total study population 99.4% had
registered businesses with the local authorities. The results from the study on SMEs financial liquidity reviewed that 97% of the SMEs experienced reduction in revenue. The SMEs experienced a 75% reduction in the number of customers and 36.8% of the SMEs confirmed experiencing disruptions in the supply chain for essential goods. However, the SMEs devised mitigation measures to withstand the effects of the Pandemic, such as offering promotions, credit, and discounts to royal customers, extended their working hours, shared spaces with other businesses to reduce the costs of rentals. There was also a rise in electronic business (ECommerce). The SMEs advertised their products and services on social media platforms, conducted virtual meetings and trainings. To ensure that they had capital for their business the SMEs formed informal banking group called village banking. Therefore, the SMEs have shown that they are able to adapt to change.
Key words: Small and Medium Enterprise, COVID-19 Pandemic, mitigation measures.
Description
Thesis of Master of Science in Entrepreneurship and Innovation