Impact of COVID-19 on SMEs and Importance of Training for Business Competitiveness

This article evaluates the impact of COVID-19 on SMEs and the importance of training for business competitiveness. It discusses the challenges faced by SMEs during the pandemic and how training can enhance employee productivity, performance, and satisfaction. The article also highlights the benefits of developing skills and capabilities in employees for achieving long-term business goals.

Entrepreneurship and
business management

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Evaluate the impact of the coronavirus pandemic on the SME sector........................................3
Evaluate whether people can be trained to be creative, and what are the advantages of this for
businesses in creating competitive advantage.............................................................................6
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
SME Stands for small scale business enterprises which has been operating at low level
within local market. These organization were highly impacted during COVID 19. Training is an
important perspective which is based upon making making employees deal with various
perspectives. Training is an important part which is required to be used with creativity.
MAIN BODY
Evaluate the impact of the coronavirus pandemic on the SME sector
In the widespread closing of stores and business within United States all over the world
which made coronavirus unprecedented. All kinds of stores, factories and various other business
have been closed as per policy mandate, downward demand shifts, health concerns and other
factors. This pandemic has effected SME sector so drastically that small business began to
struggle within there existence due to expenses, rent and bills they were required to pay which
made lock down situation difficult for them. It has impacted small business drastically which
made various operations of business not to be conducted and leading over loss of customers
percentage. The global small businesses were affected due to COVID 19 leading towards closer
of these business. It has been observed that small business were not able to operate properly due
to lack of supply of raw materials and financial assistance that reduced product circulation
making productivity of business reduced(Scarborough, 2016). COVID 19 lead towards lock
down and social distancing making people stay inside the house. This lead upon sales and profit
generation of SME nil which created financial trouble for small scale industries. Small
businesses are the backbone of any economy, and with the ripple effect of COVID-19 on
economies all over the world, their protection has become important more than ever. Since the
first case of pandemic surfaced in Ethiopia, the government has been taking various sweeping
health and economic measures to mitigate its impact. Recognized by the government as a driver
for economic growth and job creation, small businesses, or more commonly referred here as
small and micro enterprises as the lexicon goes, the sector has been growing steadily for the past
decade or so. However, facing the wrath of the coronavirus pandemic, most of these firms face
difficulty surviving in the current climate for even above 5 months, Ethiopian press agency.

The COVID 19 pandemic has added challenge over small business all over the world in
relation to size, location and funding. As per the spread of COVID 19 has lead focus shift
towards finance that is based over consequences within small firm that lack funding and financial
assistance deal in more effective way. In the time of pandemic situation certain strategies has
been adopted within market and entrepreneurship as per crisis. Small business research is able to
recognize various main issues faced by them but failed to develop appropriate strategies only
some business were able to survive(Maylor, Blackmon, and Huemann, 2016). COVID 19 made
patterns of business operations change and shift to online medium which were not applicable in
SME. The recent review has shown that basic income of employee were not paid by various
SME organization. This lead over increase within rate of unemployment. The financial issue
raised by 51% out of which only 41% followed it. The pandemic made economic crises faced by
SME which made sales reduced and profit decreased making SME closed. Short term measures
during the time of COVDI 19 has made 16 start-ups closed. SME requires time to establish in
market but due to COVID 19 policies formed by government made organization struggle more
effectively. Further, COVID 19 made SME face challenges by enhancing policies more
effectively. The quality of work has reduced within SME making pattern of work got disturbed.
SME majorly faced economic trouble while conducting operations. In order to deal with
challenges flexibility within business models were developed making opportunities created in
more effective way. This lead upon developing business strategy for SME making them survive
during the time of COVID 19. These models and strategies made various kinds of changes made
within business patterns helping in enhancing business more effectively.
Further, Small business organizations used digital technology making business progress
more effectively. These organizations lead upon various perspectives of business covered more
effectively leading upon business to be improved with better perspective. In the time of COVID
19 small business were using digital technology for seeing stock availability that made shortage
of stocks taking place. The COVID 19 pandemic has lead over making people lives to be taken
all over world. The SME has made various kinds of problems faced within various sectors that
made manufacturing barred more effectively(Turner, and Gianiodis, 2018). SME were not able
to develop coordination which made distribution process disturbed more effectively. The
circumstances that are vital in nature made understanding developed upon scale, nature and
depth of social and economic impacts making design to be developed in appropriate manner

making global chain of SME functions reduced. The small business faced main challenges that is
stuck by COVID 19 making challenges that is evident over slowing of high growth, the risk of
debt distress over domestic resource mobilizing over high inflation and unemployment which
made opportunities within an economy over elevating information in relation over exchange rate
of an organization. This made social unrest caused over making issues in relation to political and
environmental factors included more effectively. The COVID 19 has caused problem in relation
over socio-economic development within country which made industries face lot of challenges
within an organization. This lead upon making COVID 19 deal with various kinds of challenges
more effectively.
The effect of coronavirus has been felt by business all over the world. In this broad range
of interrelated issues faced upon keeping employee and customer safe in order to conduct
operations by supporting government programs. The coronavirus pandemic has affected all
sectors within economy but its drastically impacted SME and there business. It has made drastic
impact to be created on business. It has made supply chain of these business reduced making raw
materials reduced due to designing strategy programs related to business development is
effective in nature(Lombardi, 2019). It mainly impacted employees and there payrolls. This
pandemic has impacted maximum growth and sustainability which made procurement developed
within market making organization grow in more effective way. It has lead upon making
automation developed in different manner. Further, business has made fundamental challenges
faced over generating capabilities by demanding for an organization more effectively. COVID
19 has caused experts developing scope, new capabilities and demand developed more
effectively. This impact COVID 19 made drastic effect upon business organizations and its
various process. Also SME has made significant change caused within the demand of COVID 19
this made SME face financial problem making its operations closed more effectively. The
economic and social well being of affected COVID 19 which makes social security lost in the
time of pandemic. In relation to COVID 19 pandemic SME has been effected in relation over
conducting business more effectively. The payment has made increase within digital business
making some SME survive more effectively. Also COVID 19 pandemic has made changes
caused within working of an organization which made business work in more effective way.
COVID 19 helped in making improvement done in more effective way. In the situation of
COVID 19 it has been marked out that SME used new ways to conduct business which made

COVID 19 handle various situations. This made COVID 19 pandemic handle various kinds of
perspectives more effective which made functions of SME done more effectively. This made
technological changes caused within business organization made its process improved from
future perspective more effectively. This discussion shows that COVID 19 has impacted SME
drastically making business process change. This made macro level of business effected with
trade policies during time of COVID 19. Unlike a local disease, as this epidemic is widespread,
the expectation at the macro level is a world of intercultural relationship and unity during
COVID 19.
Evaluate whether people can be trained to be creative, and what are the advantages of this for
businesses in creating competitive advantage
The training and development are two major considerations which is essential to be
provided to people. In order to increase the strengths and capabilities of an individual, it is
necessary to provide training and development. The training and development in the business is
major responsibility of human resource management. In the recent times, the competition
between companies is increasing, so there is need of providing training opportunities. All major
companies in the international and national marketplace focus on providing training and
development opportunities to employees for gaining competitive advantages. In order to increase
the overall development of a business, it is essential for the management to focus on training and
development(Goncharenko, 2020). Main companies also focus on providing training and
development to employees on the basis of contemporary business environment. Key role of a
business entity should be to formulate effective and major ways to provide business solutions. In
this section example of TESCO company is taken into consideration which is a British
multinational grocery and merchandise company. The TESCO company was founded in the year
1919 and is known worldwide for its quality products and services. Training and development
should be provided by organisations in a professional manner in order to lead the competition.
The companies also focus on increasing strength of business by development of strategic choices
in training. The main advantages and benefits of providing training and development to
employees are mentioned below:
 Employee productivity- The productivity of employees and its enhancement is essential
to be developed by a company. With the help of training based practices, a business

entity increases overall productivity of employees. The TESCO company put a key
emphasis on training and development of all major employees in order to achieve its set
targets in a specific time period. The companies also focus on increasing overall potential
of employees by conducting regular training sessions. TESCO should also focus on
increasing employee productivity in order to move ahead of its competitors. It is major
role of a company to focus on analysing the importance of developing employee
productivity.
 Performance of employees- The training and development based practices helps in
increasing overall performance of employees. It is major role of a business to focus on
increasing performance of employees by providing them training. Increasing the
performance of employees will organisation more competitive at the marketplace. Main
role of a business should be to focus on training needs of employees by developing major
practices for the same(Dawson, 2016). In order to enhance performance of employees, it
is major role of business management of TESCO to develop crucial ways of providing
training and development. Human resource management is also a major organisational
body which develops effective edge in maintaining key employees in a precise and
systematic manner. In the corporate world, it is essential for TESCO to increase
performance of employees with support of training and development and performance
management.
 Employee satisfaction- In order to gain performance development, it is crucial role of a
business to increase the satisfaction of employees. The employee satisfaction is one of the
topmost priorities of a company. In order to increase the employee satisfaction, it is
important for a company to take assistance of training and development based practices.
The main companies in the global and domestic marketplace focus on providing training
with focus on major elements related to internal and external environment. According to
a survey, TESCO company's employees are highly satisfied with the practices developed
by human resource management. In order to increase the potential and overall growth of
the company, it is also essential for TESCO to understand wants and needs of employees.
The key focus of a company should be on increasing satisfaction of employees in order to
gain competency edge at the marketplace. The employee of a company must be satisfied
by giving major priority to them. This is also one of the major role of top level and

strategic management to provide key solutions to employees on the basis of dynamic
situation.
 Overall development of the organisation- The overall development of a company is
essential to be developed and achieved by management. It is major role of the board of
directors to formulate major practices in training and development of employees for
gaining market growth. The companies should also prefer to choose most convenient
ways of performance development by providing major training sessions to employees.
Companies are always ready to improve their organisational strength by formulating
flexible training sessions. This is one of the major roles and responsibilities of a business
to achieve defined goals with the assistance of training and development. In order to
provide effective training and development sessions, it is crucial for the company to take
into consideration key ways of performance improvement. The major companies in the
international and national marketplace focus on increasing business strength with the help
and support of effective training tools and techniques.
 Development of skills and capabilities- It is essential for a business to focus on
improvement of skills and capabilities in employees. The training and development based
approach is helpful in providing development of employees in terms of skills and
capabilities. It is one of the major roles of a business to also analyse the requirement of
skill development in employees to evaluate major practices(Castillo, Mora, and García-
Arenas, 2017). This is ethical role of strategic and top level management to develop a
focused approach in increasing skills. The key skills like decision making, leadership,
problem solving and critical thinking skills should be developed in employees for focused
development approach. It is moral responsibility of management of a business to put key
emphasis on training and development for the achievement of long, short and medium
term goals. All companies including TESCO develops a key approach in skill
development in employees to make them more effective and productive. The key role of
a business is to increase strengths and capabilities of all employees to achieve key
objectives. This is one of the major role of management of a business to also develop ICT
and information and technology based skills in order to increase the overall potential. The
development of communication skills is also necessary for an organisation to achieve

maximum output of employees. Increasing communication skills will enhance
coordination between employees and also help in increasing their growth and expansion.
 Decreasing employee turnover ratio- In the competitive world, the employee turnover
ratio is increasing day by day. It is necessary for different companies to focus on
decreasing the employee turnover ratio in order to gain effectiveness in performing key
operations and tasks. The company can provide effective training and development to
employees in order to increase their interest towards the job. The employee turnover ratio
must be decreased by a company in order to formulate major practices in the field of
organisational development. In order to decrease the employee turnover, training must be
provided to employees in a professional manner. TESCO company is able to achieve
effectiveness in decreasing the employee turnover ratio with the help and support of best
management practices.
 Management of workplace- In the recent times, management of the workplace is one of
the most crucial tasks of the top level authorities of a business(Bullough, Moore, and
Kalafatoglu, 2017). This is one of the major role of management to provide crucial
training sessions to employees in order to manage the workplace. It is also essential for
the business to focus on taking into consideration major and effective ways which are
helpful in providing competitive edge. The business entity should develop a major and
effective approach in dealing with key practices which are related to business growth and
expansion. The major companies are also developing a major and focused approach in
dealing with the consequences of professional development in order to analyse
competitive value. The main role of a manager is to provide training sessions to
employees in order to increase the value development of a business. The main task of a
manager should be to develop a basic understanding of wants and needs of employees
and provide crucial training sessions. The company can also perform key ways of
assessment and evaluation of performance of employees to deliver focused practices. In
the TESCO company, the management try to develop effective and working internal
environment to the employees in order to achieve the desired results. Main focus of a
business entity should be to create an effective approach in dealing with consequences
and challenges that arise in between the competition.

 Employee retention- The training and development based practices are also effective in
providing key solutions to retaining employees. It is one of the major roles of
management of a business to retain employees who are highly dissatisfied with their job
role. It is also one of the major role of a business to focus on decreasing employee
retention rates to ensure market success.
CONCLUSION
From the above discussion it can be concluded that SME are those organizations which
has been used in order to start business within local areas. These organizations operates at lower
level and is impacted during the time of COVID 19. Further, training regarding employees are
treated more effectively and its various aspects has been covered. Then creativity is used for
developing more unique methods of training employees in an organization.

REFERENCES
Books and Journals
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Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Castillo, P.A., Mora, A.M., and García-Arenas, M.I., 2017. Applying computational intelligence
methods for predicting the sales of newly published books in a real editorial business
management environment. Knowledge-Based Systems, 115, pp.133-151.
Dawson, J., 2016. Analysing quantitative survey data for business and management students.
Sage.
Goncharenko, T., 2020. From business modelling to the leadership and innovation in business:
bibliometric analysis (banking as a case). Business Ethics and Leadership, 4(1), pp.113-
125.
Lombardi, R., 2019. Knowledge transfer and organizational performance and business process:
past, present and future researches. Business Process Management Journal.
Maylor, H., Blackmon, K. and Huemann, M., 2016. Researching business and management.
Macmillan International Higher Education.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Turner, T. and Gianiodis, P., 2018. Entrepreneurship unleashed: Understanding entrepreneurial
education outside of the business school. Journal of Small Business Management, 56(1),
pp.131-149.

REFERENCES
Books and Journals