Effect of COVID-19 Pandemic on the Performance of Small and Medium Business Enterprises in Abuja-FCT, Nigeria

Abstract

It is obvious that corona virus pandemic has seriously disrupted the world economy and continuing to ravage the existence of businesses. The small and medium businesses are worst hit. This study specifically identifies the effect of COVID-19 pandemic on the performance of SMEs business in Abuja and providing recommendations on how their businesses can improve and perform effectively during this falling economy and the numerous challenges caused by the pandemic. The study adopted a quantitative research technique using data collection method through the administration of structured questionnaire and on 10 selected SMEs with 100 respondents in Municipal Area Council in Abuja which were selected purposively to elicit insights into the effect of COVID-19 pandemic on their businesses. Findings from the analysis indicated that the COVID-19 pandemic’s effect includes: loss of competent staff resulting from reduction in staff salary, low revenue or income generation, lack of patronage, and lack of sincerity on the part of government to reduce the prevalence of the pandemic. The SMEs are often faced with problems such as: inability to pay salaries, repay loans and rent. Most respondent suggested that government should introduce a well monitored and structured palliative schemes, poverty alleviation programs, reduced interest rates, relax loans and defer tax payments. There are related variables that were not mentioned in this study. It is therefore necessary to consider them in future research work.