NAME: ELISHA OWAIS

ROLL NUMBER: BM-19028

COURSE: BUISNESS COMMUNICATION (HS-202)

‘THE IMPACT OF CORONAVIRUS ON SMALL SCALE

AND MEDIUM SCALE BUSINESS ENTERPRISES IN
PAKISTAN AND WHAT STRATEGY WAS ADOPTED BY
THEM TO INCREASE THEIR BUSINESS PERFORMANCE’

SUBMITTED TO:

MISS SAMRAH RAZA

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 TABLE OF CONTENTS:

S. No. Topic Page No.

1 Introduction 3

2 Discussion 3-4

3 Conclusion 4

4 Recommendation 5

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  INTRODUCTION:
Although the COVID-19 epidemic first originated in Wuhan, China, the WHO designated it a
Public Health Emergency on January 30, 2020 and it is known to spread in nearly 180 countries.
The disease grew into a global pandemic as it spread around the world, affecting public health
globally and posing a severe threat to the global community. It was tried that all people were
made aware of the COVID-19's fast changing status in order to fight and stop the disease's
spread. During this pandemic, different businesses experience a range of problems and losses.
They specifically deal with a number of issues, including a decline in demand, disruptions in the
supply chain, cancellation of export orders, a scarcity of raw materials, and challenges with
transportation, among others. Micro, small, and medium-sized organizations, as opposed to large
enterprises, typically do not possess sufficient resources, especially financial and management
resources, and are not prepared for such disruptions likely to last longer than planned.

 DISCUSSION:
Global COVID-19 issue erupted in February 2020. Cities throughout the world went into
lockdown, there were limits on labor movement, there were travel bans, there were airline
suspensions, and most crucially, there was an economic slowdown as a result of COVID-19.
According to World Economic, 2020, it was discovered that the COVID-19 epidemic had a
significant impact on the growth of the global GDP. The worldwide GDP was negatively
impacted by the COVID-19 pandemic by 2.3 percent to 4.8 percent. Furthermore, it was shown
that the pandemic reduced worldwide foreign direct investment by 5% to 15%. In addition, the
UNCTAD research stated that the world need a support package of up to $2.5 trillion to repair
the damage.
Numerous small firms work in the retail and service industries and deal directly with the
customer. Due to the limits and closures put in place by the government, these industries were
the most negatively impacted by the COVID-19 epidemic. Small firms are able to provide
something distinct from the conventional goods and services provided by big enterprises since
they frequently operate in narrow and highly particular industries. Many of them serve as
specialised suppliers of parts, components, and subassemblies to large industrial companies,
which for the most part continued to operate throughout the COVID-19 period due to their status
as crucial industrial enterprises for the economy. This is true especially in the industry sectors.
Numerous small- and medium-sized businesses struggled with major difficulties. For instance,
the installation of lockdowns mostly had an impact on the textile and garment industries. The
economy is disproportionately affected by a decline in the demand for exports of food, drinks,
clothing, and other goods. Similar actions were taken in the transportation sector, as numerous
drivers of local buses, taxis, and rickshaws were sent home. According to a World Bank
assessment, the closure of companies and disruption of national supply chains had a considerable
impact on the retail and wholesale, transport, storage, and communications industries.

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Small enterprises all throughout the world were severely impacted. It is uncommon for retailers
and companies to close so many of them due to the coronavirus. Stores, factories, and numerous
other companies were closed as a result of governmental requirements, declining demand, health
issues, or other reasons. Due to the owners' inability to cover costs and survive the lockdown,
many of these closures were permanent.
A study found that 37 percent of companies use digital payment tools, 16 percent use them for
service delivery, and 23 percent use them for ordering. However, throughout COVID-19, we
have also observed a significant number of small firms discover creative techniques to survive,
from new markets to developing new forms of transport for their goods and services. Large
online companies like Facebook and Google developed new methods for small businesses to
interact with their consumers at the same time. Employees suffered financial losses due to lost
jobs or less hours worked even when companies are functioning. It's crucial to keep in mind that
if a company shuts or is forced to lay off employees, it has an impact on entire communities of
people who depend on their employment for financial security, which in turn helps to sustain
other local companies and organizations.
Corona viruses provided benefits and prospects for various industries in the nation beyond its
countless difficulties and crises. Opportunities to accelerate a return to trend also emerged from
the large number of businesses experimenting with digital activities for the first time. For
instance, using repurposing to support small and medium size businesses in the manufacturing
sector by producing medical equipment and supplies, or to make significant progress in the
digitalization of services in the public and private sectors and greatly encourage innovation.

 CONCLUSION:
Disruptions caused by COVID-19 did not affect all firms equally. The ability to develop
measures to satisfy social distancing rules for operating and reopening during the pandemic is
more likely to be available to larger firms because to their greater size, commercial and legal
structure, and returns to scale. However, there are more small enterprises running and it is
difficult for them to survive in such crisis period.
Over 90% of global firms are small and medium-sized businesses, which also generate 40% of
the GDP and over 40% of export revenues. These companies are more susceptible to a crisis of
this nature. More than 50% of these businesses were already at risk. The COVID-19 epidemic
and the mandated company closures had a significant impact on micro-enterprises. Additionally,
businesses with very little cash on hand were at risk and did not survive the COVID-19
pandemic.
Considering how dangerous and contagious COVID-19 is, protecting workers was important
throughout the pandemic. Furthermore, information accuracy is crucial for keeping stakeholders
informed about the state of affairs and company operations during times of increased tension.
Moreover, many companies are unable to survive the crisis without aid from the government.

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  RECOMMENDATIONS:
Globally, the COVID-19 epidemic had a significant impact on enterprises. According to a BDC
poll of more than 600 entrepreneurs, 73% of businesses were already experiencing the negative
effects of the crisis by mid-March 2020. Cash becomes much more crucial for a firm during a
crisis than it normally is. Companies can continue operations, although at a reduced capacity, by
developing a thorough continuity plan and cash flow projection. This will also make it easier to
recover when the crisis is over.
Given below is a list of measures that can be taken to protect small and medium-sized businesses
during Covid-19:

 Giving importance to health and safety of employees working during the covid-19
outbreak
 Information accuracy and responsible communication through media.
 Making home delivery and offline services more common
 Use of online banking
 Expanding business hours
 Provision of financial assistance and other subsidies by the government
 Providing concession or suspension of commercial property rents
 Telecommuting and flexible working

 BIBLIOGRAPHY:

 M. Shafi, J. Liu, and W. Ren, “Impact of COVID-19 pandemic on Micro, small, and
medium-sized enterprises operating in Pakistan,” Research in Globalization, 30-Jul-2020.
[Online].Available:https://www.sciencedirect.com/science/article/pii/
S2590051X20300071. [Accessed: 23-Jul-2022].

 “Impact assessment of covid-19 on Pakistan’s Industrial Sector,” https://www.unido.org ,

08-Mar-2021. [Online]. Available: https://www.unido.org/sites/default/files/files/2021-
03/UNIDO%20COVID19%20Assessment_Pakistan_FINAL.pdf. [Accessed: 23-Jul-
2022].

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