Impact of Covid-19 on SMEs Globally

University of Turiba, Faculty of Business Administration, Riga , Latvia ( LV-1058 )

^* Corresponding author: kampreet0001@gmail.com

Abstract

Research background: The ongoing Covid-19 pandemic has created irreversible damage to the world economy. Businesses ranging from local shops to multinational companies are suffering extensively due to the lockdowns in place. Amon this the unorganized sector is the worst hit as majority of the stakeholders have no alternative income. This makes a study in SMEs much more necessary as this sector is extremely volatile and even the slightest fluctuations in the economy causes huge losses for them.

Purpose of the article: This study is aimed at analyzing the degree of impact of the ongoing Covid-19 pandemic on SMEs globally.

Methods: This research, by design, is descriptive and exploratory and its objective is to determine, based on the appreciation that managers or those responsible for the financial management of SMEs have, how it impacts to their finances the health crisis caused by COVID-19 for the development and investment of their business.

Findings & Value added: The results obtained in the research show that the health crisis caused by the COVID-19 has been a challenge for SMEs because it has generated a strong crisis, but they have shown cautious in the measures to face it, and financial management strategies aimed at avoiding indebtedness. In conclusion, the management of SMEs is aware that to face the new modality it is necessary to carry out administrative and financial management based on foreseeable strategies, considering the changes aimed at the development and investment of their businesses.