COVID-19 Pandemic Challenges and the Nigerian Micro, Small and Medium Scale Enterprises

Abstract

 COVID-19 pandemic posed great threat and challenges to the business world most especially the Micro, Small and Medium Enterprises (MSMEs) in Lagos State. Many of these enterprises suffered great downturn in business activities and reduction in profit volume. Many of them were forced to close down while others survived on the margin. Government and other stakeholders in the MSMEs have provided solution to their problems but most of them have not really yielded desired result. This paper examines various solutions that were proffered and considered their effectiveness in facing these challenges. Descriptive research design was adopted and primary data were collected with the aid of questionnaire. Population of study was 3,224,324 registered MSMEs in Lagos State (SMEDAN/NBS, 2013) while sample size of 400 was determined with Yamane (1967) formulae. A multistage cluster sampling techniques have been employed which is a combination of stratified, cluster and simple random sampling technique. A total of 400 copies of questionnaire were administered out of which 297 were properly filled and returned. Two hypotheses were tested at 5% confidence level using multiple regression and correlation statistical packages, to determine whether there is a significant relationship between COVID-19 pandemic survival options by MSMEs and crisis management response; between COVID-19 pandemic and MSMEs business survival. The study revealed that decline in productivity, business closure, supply-chain breakdown, reduction in profit volume, self-isolation, low customer demand; reduced opportunities to meet new clients had significant effects on performance of MSMEs. Consequently, it was recommended that MSMEs should embark on crisis management response, finance and liquidity, operation and supply chain, determine and activate the business continuity plan and monitor the implementation to enhance their survival.