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Impact of COVID-19 on SMEs and employment

Author

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  • Ahmad Al-Fadly

    (Gulf University for Science and Technology, Kuwait)

Abstract

COVID-19 is a highly infectious disease-causing serious health hazards and fatalities to humans around the world. The objective of this paper is to identify how COVID-19 caused immense failures to society, particularly Small-Medium Enterprises (SMEs) in the hospitality and tourism sectors which provide employment to many people. A literature review examined how preventive measures to control COVID-19 devastated businesses. The review highlighted particular interest to workforce, supply chain and cash flow of SMEs. This research addressed the gap in understanding what and how business was affected as seen by business owners. This research used phenomenology to study businesses crippled by the pandemic. Interviews were conducted with several business owners using a set of unstructured guiding questions. Verbal responses from the participants were transcribed to textual data and analyzed thematically. The results constructed a generalized perception of SME business owners and identified themes reflecting the business individual, the business, and business survival. Importantly, the study revealed several government actions are needed to support surviving businesses and revive lost businesses, specifically, in the form of stimulus funds, moratoriums, extended loans and waivers of interest.

Suggested Citation

  • Ahmad Al-Fadly, 2020. "Impact of COVID-19 on SMEs and employment," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(2), pages 629-648, December.
    • Handle: RePEc:ssi:jouesi:v:8:y:2020:i:2:p:629-648
    DOI: 10.9770/jesi.2020.8.2(38)
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    References listed on IDEAS

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    1. Alexander W. Bartik & Marianne Bertrand & Zoe Cullen & Edward L. Glaeser & Michael Luca & Christopher Stanton, 2020. "The impact of COVID-19 on small business outcomes and expectations," Proceedings of the National Academy of Sciences, Proceedings of the National Academy of Sciences, vol. 117(30), pages 17656-17666, July.
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    Cited by:

    1. Giuseppe Maria Bifulco & Riccardo Savio & Maria Federica Izzo & Riccardo Tiscini, 2023. "Stopping or Continuing to Follow Best Practices in Terms of ESG during the COVID-19 Pandemic? An Exploratory Study of European Listed Companies," Sustainability, MDPI, vol. 15(3), pages 1-16, January.
    2. repec:zib:zbjtwe:v:1:y:2023:i:2:p:93-98 is not listed on IDEAS
    3. Jan Skrabka, 2021. "The moratorium on loan repayments during the Covid-19 Pandemic in Europe: a comparative analysis of loan moratoria in selected European countries," Perspectives of Law and Public Administration, Societatea de Stiinte Juridice si Administrative (Society of Juridical and Administrative Sciences), vol. 11(Special I), pages 291-301, October.
    4. Michela Piccarozzi & Cecilia Silvestri & Patrizio Morganti, 2021. "COVID-19 in Management Studies: A Systematic Literature Review," Sustainability, MDPI, vol. 13(7), pages 1-28, March.
    5. Igor Denisov & Yelena Petrenko & Irina Koretskaya & Stanislav Benčič, 2021. "The Gameover in Universities Education Management during the Pandemic COVID-19: Challenges to Sustainable Development in a Digitalized Environment," Sustainability, MDPI, vol. 13(13), pages 1-23, July.
    6. Hafiz Suliman Munawar & Sara Imran Khan & Fahim Ullah & Abbas Z. Kouzani & M. A. Parvez Mahmud, 2021. "Effects of COVID-19 on the Australian Economy: Insights into the Mobility and Unemployment Rates in Education and Tourism Sectors," Sustainability, MDPI, vol. 13(20), pages 1-17, October.
    7. Marco Ardolino & Andrea Bacchetti & Dmitry Ivanov, 2022. "Analysis of the COVID-19 pandemic’s impacts on manufacturing: a systematic literature review and future research agenda," Operations Management Research, Springer, vol. 15(1), pages 551-566, June.
    8. repec:ers:journl:v:xxiv:y:2021:i:2:p:748-754 is not listed on IDEAS
    9. Zbigniew Malara & Rafal Misko, 2021. "The SMEs in a Pandemic Period in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(2 - Part ), pages 748-754.

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    More about this item

    Keywords

    COVID-19; pandemic; economic effects; hospitality; tourism; businesses owners;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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