DECLINE IN PRODUCTIVITY OF SMALL AND MEDIUM SIZED ENTERPRISES (SMEs) AT THE EMERGENCE OF COVID-19 PANDEMIC IN NIGERIA

Abstract

COVID-19 virus was first confirmed in the country on 27th February, 2020. This paper examines the productivity decline of small and medium scale enterprises (SMEs) in Nigeria at the emergence of covid-19 virus. It had a rapid human to human contact which wreaked havoc by raising public health concerns and devastated the economy, and as a result small scale businesses experienced a decline in business activities at the emergence, as operations were halted, to respect the “no movement order” and there was the inability to implement preventive health measures such as sanitisers, hand washing equipment, on-site lodging for employees, there was also in existence the fear of contacting the virus. These preventive measures resulted in an increase in operations for businesses that stayed open. Ulrich Beck’s Risk Society, Manuel Castell’s Network Society and the theory of change were employed to buttress the fact that covid-19 had brought about a decline in operations and productivity of SMEs and it has further brought about the impoverished state of individuals. The emergence of the corona virus pandemic and resultant lockdowns has cast a heavy toll on SMEs, in particular young firms and start-ups, the self-employed, as well as women-led or minority-owned businesses, lockdown measures affected low sales among the enterprises, particularly the problems of logistics blocks, labor shortages, and drops in demand, 80 percent of SMEs temporarily closed. The paper documented how SMEs were at the center of the disruptions at the start of the pandemic. This paper thus recommends that despite the significant struggles that SMEs have faced, the government response to the COVID-19 pandemic can help nurture a positive, resilient, and sustainable future for small businesses in Nigeria and also SMEs should consider adopting digital marketing to minimise the negative effect of pandemic. There is the need to address social protection approaches (such as palliative measures) which can help to cushion the effect on the pandemic on the Small and Medium Scale Enterprise in Nigeria.