Coronavirus Pandemic and Survival of Small and Medium Scale Enterprises in Nigeria

Abstract

Covid 19 is a global epidemic that has ravaged the whole world in one way or the other. It has affected the developed and developing economies alike. Nigeria is not an exception. Small and medium scale enterprises have been globally acclaimed as the engine behind the development of world economies and the threat of the pandemic has not spared any sector. In view of the above, this study examines the extent at which the pandemic influences small and medium enterprises in Nigeria with special reference to Kogi State. The study involved respondents who are operators or owners of small and medium scale enterprises in Kogi State. A structured questionnaire which is made up of 19 items was the major instrument used to collect data for the study. The population of the study is all the owners or managers of registered small and medium scale enterprises in Kogi state numbering 600. The study adopts Godden sample size statistical formula which generated a sample size of 234. However, out of the total of 234 questionnaires distributed only 198 were duly completed and returned giving a retrieval rate of 85%. The study was anchored on the prospect theory. The data were analyzed using frequency, simple percentage, mean and a five point’s likert scale and the analytical tool is the regression analysis. Results show a high positive correlation coefficient of .73 which shows that the independent variable has a high positive influence on the dependent variable. The study revealed that the corona virus pandemic significantly affected the survival of small and medium scale enterprises in Nigeria. Therefore, the study recommends that owners and managers of small and medium scale enterprises be constantly engaged in training to enable them cope with the new reality of doing business amidst the covid-19 pandemic. Finally, the palliatives measures being adopted by the Federal government of Nigeria to support the SMEs are sustained.