Effects of Coronavirus Pandemic on Organizational Performance of Small and Medium Scale Enterprises in Nigeria

Emmanuel O. Emenyi & Owoibohoeno K. Udo

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Abstract

This study examined the effect of COVID-19 pandemic on organizational performance of small and medium scale enterprises (SMEs) in Nigeria. The survey research design was adopted for the study and data were obtained from primary and secondary sources. Descriptive and inferential statistics were deployed in analysing the data collected. The population of the study was made up of six thousand and thirty three (6,033) small and medium scale enterprises drawn from the South-South geo-political zone of the country cutting-across all operational areas of SMEs in Nigeria including computer and internet services, poultry businesses, barber shops, car wash, sport viewing centres, fast- food businesses, photography, haulage, courier services and laundry businesses. The sample size of the study was three hundred and seventy-five (375) SMEs and the sampling technique adopted in achieving this was the Taro Yamane Formular at 5% confidence interval level. Findings from the study revealed that, there is a significant effects of COVID-19 pandemic period on Return on Assets (ROA) of SMEs in Nigeria. From the results of findings, it was concluded that all the variables maintained an inverse relationship with the Return on Asset (ROA) of SMEs during the period and that there was a significant combined effects of COVID-19 pandemic period on sales volume and operating expenses during COVID19 pandemic period on Return on asset (ROA) of SMEs in Nigeria. It was recommended that there is need for improvement and implementation of proactive response strategies by SMEs as one of the worst hit sub-sectors in contending and cushioning the effects of COVID-19 pandemic in Nigeria, adoption of marketing strategies to drive demand and boost sales volume and patronage level of goods and services, reduction in operating expenses in order to increase profitability and achieve good performance in return on asset (ROA) of SMEs in Nigeria.

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