Author(s):
Kuldeep Bhalerao, Vaishali Patil, Shalini Swamy
Email(s):
kuldeep.bhaleraokgb@gmail.com , vaishalipatil77@gmail.com , swamishalini@gmail.com
DOI:
10.52711/2321-5763.2022.00021 
Address:
Kuldeep Bhalerao1, Vaishali Patil2, Shalini Swamy3
1Assistant Professor, Bharati Vidyapeeth’s Institute of Management Studies and Research, Navi Mumbai.
2Professor and Senior Associate Dean- Research, Publication and IT, Prin. L.N. Welingkar Institute of Management Development and Research, Mumbai.
3Assistant Professor, Department of Management, JSPM’s Imperial College of Engineering and Research, Pune.
*Corresponding Author
Published In:
Volume - 13,
Issue - 2,
Year - 2022
ABSTRACT:
Purpose: The purpose of the study is to explore the SME business scenario in COVID 19 pandemic and to examine and discuss the effect of COVID 19 on small and medium enterprises. Design/Methodology/Approach: This study is based on a literature review of COVID-19 pandemic effect on small and medium firms. The researchers have collected secondary data from various sources like Research papers, websites, Reports, and newspapers. Findings: The study investigated that COVID 19 pandemic has severely impacted SMEs around the world. The lockdown has disrupted the supply chain and manufacturing of products, many jobs are at stake and a considerable amount of SMEs could not continue their businesses and unfortunately, they have closed the businesses. Governments around the world are trying to save the SME sector by formulating various schemes and policies.
Cite this article:
Kuldeep Bhalerao, Vaishali Patil, Shalini Swamy. Impact of COVID 19 on Small and Medium Enterprises. Asian Journal of Management. 2022;13(2):115-9. doi: 10.52711/2321-5763.2022.00021
Cite(Electronic):
Kuldeep Bhalerao, Vaishali Patil, Shalini Swamy. Impact of COVID 19 on Small and Medium Enterprises. Asian Journal of Management. 2022;13(2):115-9. doi: 10.52711/2321-5763.2022.00021 Available on: https://ajmjournal.com/AbstractView.aspx?PID=2022-13-2-3
REFERENCES:
1. Agesan, R., Nomfanelo, M., and Shakeel, K. How South African SMEs can survive and thrive post COVID-19 Providing the right support to enable SME growth now and beyond the crisis. Mckinsey and Company.2020.
2. Amish Vinodbhai Udani, Shankar Chelliah. Effect of Network to Knowledge and Experience for Internationalization in Garments SMEs of Gujarat. Asian J. Management. 2016; 7(2): 133-135. DOI: 10.5958/2321-5763.2016.00019.6
4. André, D., Kweilin, E., Deepa, M., and Silberg, J.Which small businesses are most vulnerable to COVID-19—and when. Retrieved from https://www.mckinsey.com/featured insights/americas/which-small-businesses-are-most-vulnerable-to-covid-19-and-when 2020.
5. Bhalerao, Kuldeep. Covid 19 pandemic: changing business model. Business Studies Journal, 2021; 13(5), 1-2
6. Bhalerao, Kuldeep, and Patil, Vaishali. Information and communication technology adoption in small and medium enterprises: Post COVID-19 mantra of success. International Journal of Management and Commerce, 2021;3(1) 27-31.
7. Bhalerao, Kuldeep, Mahale, Prema., Jyothi, N.Vijaya, and Yelikar, Bharati. Technology: A pathway towards sustainability. Academy of Marketing Studies Journal. 2021; 25(5) 1-9.
8. CNA. (2020). Effetti negativi sul 72% delle imprese, oltre 7mila risposte al questionario CNA. https://www.cna.it/effetti-negativi-sul-72-delle-imprese-6-327-risposte-al-questionario-cna/. Accessed 5 August 2021
9. Dai, R., Feng, H., Hu, J., Jin, Q., Li, H., Wang, R., et al. The impact of COVID-19 on small and medium-sized enterprises (SMEs): Evidence from two-wave phone surveys in China. China Economic Review, 2021; 101607.
10. Dave, S. 59% of startups and MSMEs may shut shop, sell off or scale down: Survey. Retrieved August 13, 2021, from https://economictimes.indiatimes.com/small-biz/sme-sector/covid-second-wave-59-of-startups-and-msmes-may-shut-shops-sell-off-or-scale-down-localcircles-survey/articleshow/82974477.cms. 2021.
11. Daniel Joseph Hebert. COVID-19’s Impacts on SMEs and Policy Recommendations in Response. National Law Review. 2021.
12. Dev, S. M., and Sengupta, R. Covid-19: Impact on the Indian economy. Indira Gandhi Institute of Development Research, Mumbai April. 2020.
13. DIHK. Auswirkungen des Corona-Virus auf die deutsche Wirtschaft: DIHK-Blitzumfrage März 2020, Deutsche Industrie- und Handelskammern. Berlin: DIHK.2020.
14. Dimson, J., and Sharma, R. UK small and medium-size enterprises: Impact of the COVID-19 crisis. Retrieved August 5, 2021, from https://www.mckinsey.com/industries/public-and-social-sector/our-insights/uk-small-and-medium-size-enterprises-impact-of-the-covid-19-crisis. 2021.
15. Fairlie, R. The Impact of Covid 19 on small business owners: evidence of early-stage losses from the April 2020 current population survey, No.27309, National Bureau of Economic Research, Cambridge, MA,2020 http://dx.doi.org/10.3386/w27309
16. FSB. One in three closed small firms fear they’ll never reopen amid widespread redundancy plans. Retrieved August 5, 2021, from https://www.fsb.org.uk/resources-page/one-in-three-closed-small-firms-fear-they-ll-never-reopen-amid-widespread-redundancy-plans.html.2020.
17. ILO. MSME: the COVID -19 pandemic and its impact on small business. Retrieved August 7, 2021, from https://www.ilo.org/empent/whatsnew/WCMS_749275/lang--en/index.htm. 2020.
18. International Trade Centre. SME Competitiveness Outlook 2020.
1. https://www.intracen.org/smeco2020/. 2020.
19. Ismaila Abubakar, Ramatu Abdullahi, Hadiza Baba Ibrahim. Moderating Effect of Strategic Improvisation on product Innovation and Performance of Manufacturing SMEs. Asian Journal of Management. 2021; 12(3):237-2. doi: 10.52711/2321-5763.2021.00036
20. K. R. Chaturvedi, Preeti Vats. Exploring Effectiveness level of High Performance Work Practices. Asian Journal of Management. 2018; 9(1):559-564. DOI: 10.5958/2321-5763.2018.00088.4
21. Kyodo News. Coronavirus-linked bankruptcies rise sharply in Japan. Retrieved August 8, 2021, fromhttps://english.kyodonews.net/news/2020/05/8361cbd2068e-coronavirus-linked-bankruptcies-rise-sharply-in-japan.html.2020.
22. McKinsey. Safeguarding Europe’s livelihoods: Mitigating the employment impact of COVID-19. Retrieved August 8, 2021, from https://www.mckinsey.com/industries/public-and-social-sector/our-insights/safeguarding-europes-livelihoods-mitigating-the-employment-impact-of-covid-19.2020.
23. Mexico News Daily. Bank says 600,000 businesses at risk of closing for good due to virus. Retrieved August 8, 2021, from https://mexiconewsdaily.com/news/coronavirus/600000-businesses-at-risk-of-closing-for-good/.2020
24. Michael, A. Three graphs that tell the story of Covid-19’s impact on small businesses. Retrieved August 8, 2021, from https://thespinoff.co.nz/business/04-06-2020/covid-19s-impact-on-small-businesses-in-numbers/.2020.
25. Mirza, N., Naqvi, B., Rahat, B., and Rizvi, S. K. Price reaction, volatility timing and funds’ performance during Covid-19. Finance Research Letters .2020; 101657.
26. Musa L. Faal. Understanding binding Constraints to small and medium Enterprises (SMEs) in The Gambia: A Critical Review. Asian Journal of Management. 2020;11(2):216-221. DOI: 10.5958/2321-5763.2020.00034.7
27. Nishu Ayedee, Sanjay Manocha. Role of Media (Television) in Creating Positive Atmosphere in Covid 19 during Lockdown in India. Asian Journal of Management. 2020; 11(4):370-378. DOI: 10.5958/2321-5763.2020.00057.8
28. Nishu Ayedee, Anuj Kumar. Indian Education System and growing number of online Conferences: Scenario under COVID-19. Asian Journal of Management. 2020;11(4)395-401. DOI: 10.5958/2321-5763.2020.00060.8
29. Pedauga, L., Sáez, F., and Delgado-Márquez, B. Macroeconomic lockdown and SMEs: the impact of the COVID-19 pandemic in Spain. Small Business Economics.2021
30. Peerzada, A. (2021, May 26). Covid-19 impact: Many startups, MSMEs stare at closure, says survey. Retrieved August 8, 2021, from https://www.business-standard.com/article/companies/covid-19-impact-many-startups-msmes-stare-at-closure-says-survey-121052601337_1.html
31. R.K. Mittal, Vijita Singh Aggarwal, Dinesh Rawat. Enhancing competitiveness of MSMEs in India through their integration in Global Supply Chain: A study of challenges faced by firms in Gurgaon auto –Component cluster. Asian J. Management; 2017; 8(1):59-67. DOI: 10.5958/2321-5763.2017.00009.9
32. Rohit Nandkishor Kenge, Zafar Khan. Industry 4.0 latest Trends and it's Application. Asian Journal of Management. 2021; 12(2):181-5. DOI: 10.52711/2321-5763.2021.00027
33. R P Saharia. Corporate Vision of Indian SMEs: A Review of the Literature. Asian J. Management; 6(2): April-June, 2015 page 75-78.
34. Runyan, R. C. Small business in the face of crisis: identifying barriers to recovery from a natural disaster 1. Journal of Contingencies and crisis management ,2006; 12-26.
35. Smith-Bingham, R., and Hariharan, K. This is the impact of the Coronavirus on business. In World Economic forum. Retrieved from www.weforum.org.2020
36. Sneader, K., and Singhal, S. Beyond coronavirus:. Retrieved from
2. https://kinyungu.com/wp-content/uploads/2020/04/McKinseyBeyond-coronavirus-The path-to-the-next-normal.pdf.2020.
37. Sun, T., Zhang, W.-W., Dinca, M. S., and Raza, Muhammad. Determining the impact of Covid-19 on the business norms and performance of SMEs in China. Economic Research-Ekonomska Istraživanja .2021;1(20). doi: 10.1080/1331677X.2021.1937261
38. The Economic Times. (2021, April 22). Dun and Bradstreet: Over 82% of SMEs had negative impact during Covid-19. Retrieved August 4, 2021, from https://economictimes.indiatimes.com/small-biz/sme-sector/dun-bradstreet-over-82-of-smes-had-negative-impact-during-covid-19/articleshow/82197779.cms?from=mdr
39. Usha N., G. Devakumar. Determinants of Sustainable Business with Respect to Agricultural Engineering Manufacturing Companies.Asian Journal of Management. 2019; 10(1): 61-66. DOI: 10.5958/2321-5763.2019.00011.8
40. Welter, F., H. Wolter and P. Kranzusch. Preliminary assessments of the IFM Bonn on the economic impact of the coronavirus pandemic on the “Mittelstand” businesses in Germany, IFM-background paper, IFM, Bonn.2020