COPING STRATEGIES OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN NIGERIA: THE COVID-19 EXPERIENCE
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The negative effect of Covid-19 has deluged every sector of the economy leading to global economic crisis and countries with rich human, financial and natural resources are not left out. This situation has spread gradually across Sub-Sahara Africa including Nigeria. SMEs are mostly affected in this unfortunate situation as their survival is being threatened due to the challenges of this global pandemic. Previous
studies have focused on the impact of Covid-19 pandemic on economic growth and development. However, little is known about the impacts of Covid-19 pandemic on SMEs and their coping strategies. This paper examines the impacts of Covid-19 pandemic on SMEs in Nigeria and their coping strategies. The study adopted the survey research design and purposive sampling technique. Data were collected from 205 SMEs owners in three commercial cities of Akwa Ibom State, namely; Uyo, Ikot Ekpene and Eket through the use of questionnaire. Data analysis involved the use of descriptive methods. Preliminary findings revealed that SMEs have been greatly affected by the Covid-19 pandemic as it has caused gross reduction in sales and revenue, inability to repay loans, rents and salaries and products expiration. SMEs have adopted coping strategies, which include product diversification, increase in learning, exploration of new markets as well as the use of delivery agents to reach out to customers in the rural areas. Government efforts to prevent and curb the spread of the virus, reopen the economy and increase economic growth should include reduction of interest rates, relax loan and tax payments especially on the Importation and exportation of goods and services.
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