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ENVIRONMENTAL CHANGE AND THE CORONAVIRUS PANDEMIC

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PART 2: ANALYZE THE ORIGINS AND EFFECTS OF COVID-19 AND EXPLAIN THE

CHALLENGES POSED BY THESE FOR BUSINESS AND THE ECONOMY

INTRODUCTION

This study employed a Systematic Review to investigate secondary data to objectively assess the

effect of Covid-19 on SMEs and the strategic initiatives made to alleviate the issue in emerging

countries. After reviewing the relevant literature, we can say that COVID-19 impacts the

practices of both big and small organizations. The COVID-19 pandemic has set in motion

massive human suffering and death. It's the worst disaster to hit public health in living memory.

It has set off a massive economic disaster, with unknown effects on national output, plummeting

confidence, spending, and negative reactions from financial markets due to heightened anxiety

(Belitski et al., 2022).

OVERVIEW

Without a vaccine or treatment, the virus quickly spread over the globe, prompting several

governments to impose restrictions on their citizens' movements. Financial instability, a sign of a

changing market scenario, resulted from the interconnected web of public health programs and

the economy. Small and medium-sized enterprises (SMEs) bear the brunt of the COVID-19

dilemma since they predominate in the most difficult sectors. Because there is currently no

treatment for COVID-19, countries have taken drastic steps in response to its identification and
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spread, such as isolating large portions of the population and increasing the distance between

them. Some small and medium-sized enterprises (SMEs) have adapted to the crisis by solving

issues creatively to capitalize on openings (Siuta-Tokarska, 2021).

Unfortunately, a few government actions were required to turn such possibilities into reality by

reinvigorating the entrepreneurial culture and lessening the negative impact of quarantine

restrictions. Still, they are resilient and may discover opportunities in disruptive and

unpredictable times. As a result, I will analyze the results of covid 19 on SMEs and the reactions

of their stakeholders using a systematic review.

DEFINITION AND EXPLANATION

By systematically and descriptively identifying, selecting, and critically appraising the original

studies, as well as retrieving and analyzing data from the examined research results, a systematic

review provides a full analysis of the findings for a specified issue. This method will help

academics and interested readers understand the divergent perspectives presented in the

published studies on the effects of COVID-19 on SMEs. The findings of this research will

provide light on potential approaches that small and medium-sized enterprises (SMEs) might use

to deal with the challenges given by COVID-19 (Le and Nguyen, 2022).

Moreover, systematic reviews encourage evidence-based management, which is crucial for

logical decision-making in the scientific realm. Thus, it enriches the study by illuminating the

reasons behind the effectiveness of certain strategies in counteracting the effects of COVID-19

and the failure of others. Ultimately, it provides a communal jumping-off point for further

research by pointing out evidence, gaps, and negative academic outcomes. On the other side,
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there are restrictions to a systematic review. Initial studies are easily available, and the wide

variety of research approaches complicates attempts at synthesis. The importance of narrowing

down your topic of study, finding the right databases and search terms, and applying thematic

analysis to group findings based on commonalities are all stressed (Goldstein et al., 2021).

The systematic review underwent a process of iterative discovery, examination, and evaluation

of published information to develop its aspects, such as the searches and the scope and

constraints for evidence selection. The whole evaluation process is documented so that reliable

findings may be obtained. The research employed a qualitative technique to examine and

evaluate the discovered literature, emphasizing keywords and various ideas from numerous

studies to generate an objective and scholarly perspective on the issue.

JUSTIFICATION

The search criteria for the systematic review were "impacts of COVID-19 on SMEs" and "SMEs

methods to tackle COVID-19 difficulties," in addition to identifying the critical practices. A

recent systematic study evaluated the influence of well-established SME practices in the setting

of pandemics in both developing and wealthy nations (Giunipero et al., 2022). Thus,

investigations were carried out. The search terms were selected to zero down on the topic and

pull out pertinent data. Word shortening also has useful outcomes.

PROCESS
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The research was found by a comprehensive search of internet databases using keywords. The

databases of the government, as well as those of Springer, Elsevier, Wiley, and Emerald, were

searched (Kuah, 2022). These resources met all the requirements for a credible systematic

review: they were comprehensive, used consistent criteria, and offered the many peer-reviewed

publications needed to draw accurate conclusions. They were home to numerous highly regarded

publications, lending credence to the reviews.

LIMITATIONS

The articles included in the systematic review, however, were selected because of their

worldwide reputation and the quality of peer review. Furthermore, a time constraint of 2016-

2021 was chosen to take advantage of recent findings; prior publications and undated sources

were not considered.

FINDINGS

Impact of COVID 19 on SMEs:

Many problems have arisen due to COVID-19. This has impacted SMEs' demand and supply

dynamics, cutting their overall profits.

SMEs strategies to combat COVID-19 challenges: Small and medium-sized enterprises (SMEs)

have overcome the challenges posed by COVID-19 with the help of management and other

entities, such as government and non-governmental organizations.

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IMPACT OF COVID 19 ON SMEs

Companies with less than 500 employees have felt the effects of the COVID-19 epidemic the

most, which has ripple effects on the market. Many people who normally would go to work on

such days when schools are closed instead stay home to care for sick children or other family

members, leaving small enterprises short-handed (Caballero-Morales, 2021). Lockdowns and

immunizations, among other preventative measures, have further reduced production.

Disruptions in supply chains also cause shortages of components and final products. When

demand and income suddenly and significantly decline, or when SMEs suffer major financial

challenges, their capacity to operate is affected. As a result, people are less inclined to go out and

buy things because they fear losing money, becoming sick, and the future, in general, is

unknown (Juergensen et al., 2021). These impacts are exacerbated when corporations cannot pay

employees' wages due to layoffs. Customers and businesses lose faith in industries impacted

particularly severely, such as hospitality and transportation. Because of the larger effect social

distance' has on SMEs, they are at increased risk during the pandemic. SMEs start the vast

majority of new enterprises, GDP, and jobs.

Although SME prevalence is high overall, it is especially so in sectors and areas impacted

particularly hard by the economic downturn. The SMEs of Northern Italy play a crucial role in

the Italian economy (Amankwah-Amoah et al., 2021).

Furthermore, SMBs abound in sectors such as transportation (affected by the virus and the

suppression efforts) as well as the food and textile industries (requiring rapid delivery) (SMEs).

In reality, SMEs were in more danger since they relied so heavily on suppliers in areas where

COVID-19 was already widespread. Another issue for SMEs is the difficulty in transporting

products by water, land, or air. SMEs are especially susceptible to interruptions in corporate
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supply chain systems since they are interconnected with bigger organizations (like MNEs) and

rely on outsourcing for many important business facilities.

Because of the disruption to the supply chain operations and the formation of new partnerships

and commercial agreements by former colleagues, it may be difficult for many SMEs to relink

with prior relationships. If global demand for businesses' products and services drops, it would

be especially hard for small and medium-sized enterprises (SMEs). Among SMEs servicing local

markets that have established control measures, this impact may be seen most strongly in sectors

like the travel industry (Kuah, 2022). Due to a lack of flexibility and resources, small enterprises

are more vulnerable to economic downturns. In the wake of the pandemic, the International

Trade Commission (ITC) conducted the COVID-19 Economic Impact Survey, which surveyed

4,467 enterprises across 132 countries (Aduhene and Osei-Assibey, 2021).

SMEs STRATEGIES TO COMBAT COVID-19 CHALLENGES

The small and medium-sized enterprise (SME) sector has been hit hard by the COVID-19

epidemic. In the wake of the COVID-19 economic downturn, SMEs had challenges delivering

their primary services and were put at substantial financial risk (Le and Nguyen, 2022). The

problems brought on by the pandemic have been met in various ways, and previous studies have

shown that SME managers have responded in their unique ways. After experiencing the effects

of the COVID-19 epidemic, SMEs might greatly benefit from outside aid to recover and thrive.

Many government and non-government organizations (NGOs) provided SMEs with a wide range

of resources, including government-owned subsidiaries, to keep them afloat as the COVID-19

pandemic spread (Siuta-Tokarska, 2021).

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Different governments have launched several initiatives to lessen the blow of the crisis. When

the COVID-19 issues arose, SMEs could get financial aid from international NGOs and banking

institutions. To lessen the blow of COVID-19, many small and medium-sized company owners

have taken measures like outsourcing to cut down on pay and labor costs. SME owners were

surprised by the COVID-19 recession but responded by developing novel management systems

and sales strategies (Belitski et al., 2022).

The innovative practices of small enterprises significantly contribute to their prosperity. These

findings imply that small and medium-sized enterprises (SMEs) that adapt to the COVID-19

pandemic by using new management methods (in external information, frameworks and

governance, restoration, and worker duties) may have higher productivity and a higher chance of

survival (Carracedo et al., 2021).

CONCLUSION

It was shown here that the relationship between creative activities and company lifespan might

be tempered with external aid to SMEs. Businesses of all sizes can persevere and even thrive in

the face of the COVID-19 pandemic because of the external aid they get in recruitment, advice,

and funding. Partly supporting the claims of those who argued that financial institutions should

adjust their lending practices to help small and medium-sized enterprises (SMEs) cope with the

fallout from the COVID-19 pandemic problem, the facts show that such action is warranted.

Consequently, studies show that outside aid is crucial for maintaining the link between SME

organizational innovation and survival during the pandemic disaster. When looking at the
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correlation between innovation strategies and the relatively short-term performance of these

organizations, they show that this function is less crucial.

REFERENCES

Amankwah-Amoah, J., Khan, Z. and Wood, G., 2021. COVID-19 and business failures: The

paradoxes of experience, scale, and scope for theory and practice. European Management

Journal, 39(2), pp.179-184.

Belitski, M., Guenther, C., Kritikos, A.S. and Thurik, R., 2022. Economic effects of the COVID-

19 pandemic on entrepreneurship and small businesses. Small Business Economics, 58(2),

pp.593-609.

Caballero-Morales, S.O., 2021. Innovation as a recovery strategy for SMEs in emerging

economies during the COVID-19 pandemic. Research in international business and finance, 57,

p.101396.

Carracedo, P., Puertas, R. and Marti, L., 2021. Research lines on the impact of the COVID-19

pandemic on business. A text mining analysis. Journal of Business Research, 132, pp.586-593.

Giunipero, L.C., Denslow, D. and Rynarzewska, A.I., 2022. Small business survival and

COVID-19-An exploratory analysis of carriers. Research in Transportation Economics, 93,

p.101087.
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Goldstein, I., Koijen, R.S. and Mueller, H.M., 2021. COVID-19 and its impact on financial

markets and the real economy. The Review of Financial Studies, 34(11), pp.5135-5148.

Kuah, E., 2022. Re-structuring small and medium-sized enterprises for better survival in the

post-COVID-19 world. Journal of the International Council for Small Business, pp.1-7.

Le, T.T. and Nguyen, V.K., 2022. Effects of quick response to COVID-19 with change in

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the effects of changes, applied tools and management strategies—the example of Poland—

sustainability, 13(18), p.10185.

Aduhene, D.T. and Osei-Assibey, E., 2021. Socio-economic impact of COVID-19 on Ghana's

economy: challenges and prospects. International Journal of Social Economics.