SME Survey Reveals COVID-19 Impact on Businesses is Still Alive

The mention of Covid-19 may have faded in a new SME survey produced by the Economic Policy Research Center, but its remaining impact on small enterprises remains visible. According to report by Ismail Ladu, micro-businesses are particularly vulnerable in times of large economic shocks.

The survey reveals a correlation between the size of an enterprise and its ability to withstand shocks, according to a survey by the Economic Policy Research Centre (EPRC).

“What is shocking is that for micro-businesses, the correlation between business growth and resilience is weaker. Micro-businesses exhibit the lowest level of resilience. However, there is a slight improvement. Small enterprises display a slightly better level of resilience than medium enterprises. Medium enterprises, while still relatively weak, exhibit noticeable improvement. This progression is crucial, emphasizing the importance of supporting businesses in their growth journey,” said Smartson Ainomugisha, Research Associate from EPRC.

The survey, which tracked over 1,000 companies between 2020 and 2023, spanning two COVID-19-related lockdowns until the full reopening of the economy, underscores that while the pandemic may not dominate headlines, its effects persist, especially for many SMEs.

“The pandemic may be officially over, and the economy is open, but the long-term changes it wrought are ongoing. It’s imperative to support businesses as they grapple with these lasting effects, helping them recover and return to pre-pandemic levels,” he added.

Micro and small businesses, in particular, are still grappling with the aftermath and struggling to regain their pre-pandemic footing. A key takeaway from the report is the urgent need to develop resilience, possibly through training and other interventions, to ensure businesses are protected against future economic shocks.

According to Musa Ladu of NTV Business, the study emphasizes the essential importance of giving continued support to prevent economic crises from washing away these enterprises.—NTV Uganda

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button