The Effects of COVID-19 Pandemic on Small and Medium Enterprises

Abstract

The research aimed to delineate the effects of COVID-19 on the operations of Small and Medium Enterprises (SMEs) in Candelaria, Quezon specifically on key business drivers, HR and business functions such as operations, finance and marketing. Using descriptive research method, the 133 randomly chosen business owners were surveyed using researcher-made questionnaire distributed via Google Forms. The study showed that key business drivers highly affected by the pandemic were products and services offered and business location. The businesses were unlikely affected in terms of HR but likely consider to stop hiring new employees and reduce working hours. The overall effect on the major business functions was rated ‘high’ with emphasis on the installation of health protective measures and strictly following the protocols. In addition, most of the business owners anticipate loss than profits. The emergence of different platforms to market and sell the products and services enable the SMEs to transcend from the losing end to the new normal of work. However, to sustain the operations of the SMEs in the long run, the local government intervention is necessary.

Keywords

• small and medium enterprises
• smes
• sustainability
• covid-19