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

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