Comprehensive Report: COVID-19 Impact on Small and Medium Businesses

This report analyzes the impact of the COVID-19 pandemic on Small and Medium Enterprises (SMEs). It begins with an introduction to the virus and its rapid spread. The report then examines the findings of several articles, each focusing on different aspects of the pandemic's effects on SMEs, including financial challenges, business risks, and the need for government support. The research methodologies employed include qualitative and quantitative approaches, with data collected from various sources. The similarities between the studies are highlighted, such as the focus on financial shortcomings and the use of secondary information due to lockdown restrictions. The report also discusses the limitations of the research, such as the lack of focus on the IT sector and government expenditure. It concludes that financial hardships are a major factor in the failure of SMEs and emphasizes the need for restructuring and financial assistance to help these businesses resume operations. The report includes references to the articles and books used in the analysis.

IMPACT OF COVID-19 ON
SMALL AND MEDIUM
BUSINESS

Table of Contents
1.1 INTRODUCTION.....................................................................................................................3
FINDINGS.......................................................................................................................................3
1.2.1 Article 1..............................................................................................................................3
1.2.2 Article.................................................................................................................................3
1.2.3 Article.................................................................................................................................4
1.2.4 Article.................................................................................................................................4
1.2.5 Article 5..............................................................................................................................4
1.2.6 Article 6..............................................................................................................................5
1.2.7 Article 7..............................................................................................................................5
1.3.1 Similarities..........................................................................................................................5
1.3.2DISCUSSION AND ANALYSIS.......................................................................................6
1.3.3 Impact that have not been discussed in above researches...................................................6
1.3.4 impact that have been discussed.........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................1

1.1 INTRODUCTION
COVID-19 is a disease that is caused by virus that is called corona virus. Most society
has been facing this virus disease as this virus is spreading in a rapidly all over the world. SME
are small- medium companies which are run through small number of employees. The numbers
of employees may vary in different countries as the highest number of workers are 250. The
following assessment will evaluate the impact of Covid-19 had on small and medium companies
and a critically analysis will be presented for the same.
FINDINGS
1.2.1 Article 1
Title: “European SMEs amidst the COVID-19 crisis: assessing impact and policy responses”
As per the Juergensen (2020), the aim of research paper was to examine different types of EU
manufacturing small and medium companies influenced by COVID-19 and policies implications
which are based on analysis. The methodology used in this review is qualitative as the research
had used pre develop policies of the pandemic situation to elaborate the COVID and necessary
implication of policies. The research show how COVID affects the businesses of small and
medium companies. The study basically differentiate between present effects, the outputs of
occurrence of lock down all over the European market. In short run small and medium business
have runned with various challenges.
1.2.2 Article 2
Title: “The impact of COVID-19 on small business outcomes and expectations”
According to Bartik (2020), the aim was to investigate the impact of COVID-19 on SME their
expectations and outcomes. The methodology used in research is quantitative approach to collect
required data. Mass Layoff was presented several themes. The medium enterprises have more
than $10, 000 in their monthly expenditure. The major business planned to seek the amount

through the aid which are being allot by economy. The article is contributed to make a
favourable understanding of the impact that are caused by COVID-19 on small business
activities. The risk that is caused by COVID-19 is related to expected duration of situation.
1.2.3 Article 3
Topic: “The impact of COVID-19 on SME financing markets”.
The Kraemer-Eis (2020), aim to analysis the impact of pandemic period of COVID-19 on entire
finance marketing of small and medium companies. The methodology of this research is
qualitative as the data is collected from primary and secondary methods. The COVID-19 has
impacted on internal economic attitude. The economic of EU was faced the recession in the
beginning of the 2020 year. The economy has contracted more than 8 percentage during 2020.
SME financial practise is underdevelopment and from the time of the pandemic situation still the
economy is facing financial crisis. The SMEs are also helped European market in their job
creation and help the economic to grow further.
1.2.4 Article 4
Topic: impact of the COVID-19 crisis on the perception of business risk in the SME segment
Cepel(2020), was aim to determine the impact of COVID0-19 pandemic situation entrepreneurs
position towards the business risk in SMEs companies. The methodology has used quantitative
approach to as 1502 small and medium companies have been taken for the research. For that 822
companies are giving response for risks related to business and other are of COVID-19 crisis.
Before the pandemic period of COVID-19 62.8 percentage small and medium business in
solovakia and 67.8 percentage in Czech republic are considered as risk that are personal.
1.2.5 Article 5
Title: “COVID-19 and SME Failures”
As per the views of Gourinchas and et. al., (2020),the aim of this article is to assess the impact of
a major shock, that is COVID-19 where huge number of small and medium enterprise. The
negative aspect of dependence over bank for financing in order to inject liquidity has also been
highlighted, which leads to inability among SME's in obtaining liquidity finance at a very short
notice. This research paper involved quantitative study of SME's operating in seventeen

countries by utilizing their large representative database of cost minimization in order to measure
their liquidity shortfalls.It has found out that despite huge impact on other sectors, financial
sector has been moderately affected. The Non performing loans has been significantly increased
in bank's balance sheet. It has also been found that poor cash flows in SME's leads to inability to
pay for fixed costs and financial expenses.
1.2.6 Article 6
Title: “Impact Of COVID-19 On SME'S And Employment”
According to Indriastuti and Fuad (2020), the purpose of this study to examine the extent to
which SME's gets affected from the sudden emergence of COVID-19 pandemic. The objective of
this study is estimate individual business owner of SME's gets affected by the pandemic and how
they manage their survival. In this research paper, interviews has been conducted along with
verbal responses to gather data. Thematic perception test has been adopted to analyse qualitative
data. From this research paper, it has been found that there was a need of governmental actions
in order to ensure SME's survival and revive their failing status through moratoriums, loans and
waiving interests.
1.2.7 Article 7
Title: “Impact of Covid-19 on Digital Transformation and Sustainability in Small and
Medium Enterprises (SMEs): A Conceptual Framework”
Al-Fadly (2020) stated that, the aim of this study to understand the framework of sustainability
by highlight the adoption of digital technology in SME's. This study was a qualitative study
where secondary source of data has been utilized. It has been found from this study that due to
lacking digital skills and inability to adopt digital technology because of financial shortcomings
many of the SME's failed in this ground.
1.3.1 Similarities
The similarities between research conducted on impact of COVID-19 on SME's are:
1. In the context of aims and objectives, most of the studies are aims to analyse financial
shortcomings and liquidity shortfalls of the SME's.
2. If looking at the research methods adopted, many studies are qualitative research, where
only secondary sources of information has been utilized due to not able to approach
participants in times of countrywide lock-down..

3. Findings of almost study are similar in the sense that these SME's are greatly affected due
to its structural deficiency in acquiring finance for adopting new innovations in order to
continue their operations in times of lock downs.
1.3.2DISCUSSION AND ANALYSIS
 In this discussion there are different aim and objectives as one have aim to examine
different types of EU manufacturing the SMEs and another one is evaluating the impact
of COVID-19 on financial market and article are not focused on all the sectors.
 The methodology are generally qualitative as due to crisis situation the research are done
on secondary source of information.
 Basically the difference on the basis of sectors that are being influenced due to COVID
pandemic period. Some articles are on failure of SMEs and some are on impact on overall
business risk.
1.3.3 Impact that have not been discussed in above researches
In the above researches, there is no discussion about how SME's operating in IT sector get
benefited due to advancement in operating systems of various other sector's businesses. There
was no inclusion of any literature related to impact on governmental expenditure with the
emergence of COVID-19 pandemic. Also, there was no discussion about those SME's whose
profitability gets improved by adopting digital technology for their operations.
1.3.4 impact that have been discussed
In these article the risk and failures are taken majorly and the discussion may related to
entrepreneur Of the SMEs as they are main in small organizations should be involved in the
article. The discussion may also involve the opportunities that are arise for SMEs in the
pandemic period. As the articles are mostly on the risk and failure and the opportunities that are
available for small and medium companies are being excluded in this.

CONCLUSION
From the above report it has been concluded that by analysing various researches
conducted for studying the impact of COVID-19 on SME's, it has been learnt that the main
reason highlighted in almost all studies was the financial hardships which causes the failure of
various SME's. From the discussion of various impact on SME's, there is a need to restructure
these SME's in order to resume their operations through financial assistance in terms of various
governmental support.

REFERENCES
Books and journals
Bartik, A.W., Bertrand, M., Cullen, Z., Glaeser, E.L., Luca, M. and Stanton, C., 2020. The
impact of COVID-19 on small business outcomes and expectations. Proceedings of the
National Academy of Sciences. 117(30). pp.17656-17666.
Juergensen, J., Guimón, J. and Narula, R., 2020. European SMEs amidst the COVID-19 crisis:
assessing impact and policy responses. Journal of Industrial and Business
Economics. 47(3). pp.499-510.
Kraemer-Eis, H., Botsari, A., Gvetadze, S., Lang, F. and Torfs, W., 2020. European Small
Business Finance Outlook 2020: The impact of COVID-19 on SME financing
markets (No. 2020/67). EIF Working Paper.
Cepel, M., Gavurova, B., Dvorský, J. and Belas, J., 2020. The impact of the COVID-19 crisis on
the perception of business risk in the SME segment. Journal of International Studies.
Gourinchas, P. O., and et. al., 2020. Covid-19 and SME failures (No. w27877). National Bureau
of Economic Research.
Indriastuti, M. and Fuad, K., 2020, July. Impact of covid-19 on digital transformation and
sustainability in small and medium enterprises (smes): A conceptual framework.
In Conference on Complex, Intelligent, and Software Intensive Systems (pp. 471-476).
Springer, Cham.
Al-Fadly, A., 2020. Impact of COVID-19 on SMEs and employment. Entrepreneurship and
Sustainability Issues, 8(2), p.629.
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