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EFFECT OF COVID-19 ON THE FINANCIAL PERFORMANCE OF SMEs IN NIGERIA

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

Nigeria is without a doubt one of Sub-Saharan Africa’s most important economies1. While she is largely reliant on oil,  According to the Ministry of Industry, Trade, and Investment, Nigeria has approximately 37.07 million micro, small, and medium-scale firms (SMEs), which account for more than 84 percent of overall employment in the region. MSME enterprises in Nigeria account for around 48.5 percent of the country’s GDP and 7.27 percent of all goods and services exported out of the country, according to the government. Micro businesses account for 36,994,578 (approximately 99.8%) of all SMEs in Nigeria, with small businesses accounting for 68,168 and big enterprises contributing for 4,670. The top three states in Nigeria with the most SMEs are Lagos State, Oyo State, and Kano State.her economy is bolstered by pockets of global entities from practically every sector, including international corporations with offices in the region, indigenous firms, and a large number of small and medium-sized businesses (SMEs). Small and medium-sized businesses (SMEs) are self-contained, non-affiliated businesses with fewer than a certain number of employees. This amount varies depending on the country. The most typical upper limit for designating a SME in the European Union is 250 employees. However, some countries limit the number of employees to 200, whereas SMEs in the United States are defined as businesses with fewer than 500 employees. Micro-companies have fewer than 50 employees, while small firms have fewer than 50.

STATEMENT OF PROBLEM

Corona viruses are members of the Coronaviridae family of viruses that infect both animals and humans. MERS (Middle East Respiratory Syndrome) and SARS (Extreme Acute Respiratory Syndrome) are examples of human corona viruses that can produce mild sickness similar to a common cold or more serious illness (Severe Acute Respiratory Syndrome). In December 2019, a novel corona-virus was found in Wuhan, China, that had never been seen in humans previously. Fever, cough, and shortness of breath are signs and symptoms of respiratory problems. Infection can cause pneumonia, severe acute respiratory syndrome, and, in the worst-case scenario, death. When coughing or sneezing, use a flexed elbow or a disposable towel to screen the nose and mouth, and avoid physical contact with someone who is sick. Many traders and small company owners’ lives are in peril as the COVID-19 threatens to wreck havoc. According to a recent Goldman Sachs poll, half of business owners feel they won’t be able to keep their businesses running for more than three months. Business owners have numerous problems, including guaranteeing the continued operation of the firms in which they have committed their blood, sweat, and tears. On top of that, they all have employees to protect and reassure, which is a Herculean task given their own exhaustion. COVID-19 continues to have an impact on businesses and how they operate, ranging from production/operations closures to a loss of customer trust. The effects of the Corona Virus are undeniable.

OBJECTIVES OF THE STUDY

To determine whether the Corona Virus (COVID 19) has any impact on Nigeria’s small and medium-sized businesses.

To find out if the Corona Virus (COVID 19) has had a favorable impact on Nigerian or SME businesses.

RESEARCH QUESTIONS

I. Has the Corona virus had any effect on Nigeria’s small and medium-sized businesses?

II. Has the Corona virus had a good impact on Nigeria’s small and medium-sized businesses?

SIGNIFICANCE OF THE STUDY

The importance of this study effort is that it focuses on the influence of Covid 19 on small and medium firms, but it will also be valuable to other researchers, intellectuals, and students who want to perform related research.

SCOPE OF THE STUDY

This study was conducted in Keffi, Nasarawa state, and focused only on the impact of Covid 19 on small and medium businesses.

LIMITATION OF THE STUDY

During the course of this investigation, the researcher experienced numerous problems, including a lack of funding, as well as a lack of materials and time constraints.

DEFINITION OF TERMS

CORONA-VIRUS: Corona-viruses are a broad family of viruses that can cause illnesses ranging from the common cold to more serious conditions like Middle East Respiratory Syndrome (MERS) and Severe Acute Respiratory Syndrome (SARS).

(SARS).

SMEs: Small and medium-sized enterprises, or SMEs, are classified differently around the world. The size of a small firm is dictated by the country in which it operates. A company’s size or classification as a SMEs may be determined by a variety of variables, depending on the jurisdiction. Annual revenue, staff count, assets held by the company, market capitalization, or any combination of these factors are examples of characteristics.

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