Impact of Coronavirus (Covid-19) Pandemic on Small and Medium Businesses in Edo State

The study assessed the impact of Coronavirus (COVID-19) pandemic on business in Edo State, Nigeria. It determined the effect of the pandemic lockdown on sales volume, cash flow and profit margin of small and medium business owners amidst covid-19. 1119 business operators constituted the study population and a sample size of 235 respondents were purposively selected. Four research questions gave focus to the study. A 40-item structured questionnaire was used to elicit information from the respondents. The descriptive survey research design gave credence to the study. A reliability coefficient value of 0.79 was obtained with the use of Cronbach Alpha formula. The research questions were answered with mean and respondents’ homogeneity determined with standard deviation. The result of the findings revealed that COVID-19 impacted negatively on sales volume, business cash flow and profit margin. It was concluded that Covid-19 as an unforeseen circumstances that was contingent truncated business growth and rendered many liquidated. It was therefore recommended that business owners should engage in more online business transaction to increase sales volume, facilitate increased steady cash flow and maximize profit amidst Covid-19 as well as develop other strategies to enable their massive savings to surmount crises that could be contingent and inimical to their businesses

other diseases outbreak happened in the past which equally affected lives and businesses such as Marburg virus of 1967, the Spanish flu of 1918 that claimed over 50 million lives, Smallpox of 1980 virus which claimed over 300 million lives, HIV of 1980 that claimed about 32 million lives, Rotavirus of 2008 that claimed about 453,000 children's lives, Swine-flu pandemic of 2009 that claimed about 203,000 lives across the globe, among others.
In order to mitigate the negative impact of Covid-19, government provided palliative measure for essential goods (foods and drugs) and increased its budgetary allocation from N8.83 trillion in 2019 to N10.59 trillion in 2020. The informal sector contributes a large proportion of its revenue to government coffer which were truncated by the sudden emergence of Covid-19 pandemic; investments by firms were greatly affected, decline in stock prices, increase in government spending and fall in global demand for goods and services occasioned by the restrictions on movement of people and border closures. This caused multiple negative effects on most Africa businesses especially Small and Medium Business sectors since majority of them depend solely on goods manufactured in China which are shipped to Africa. The pandemic resulted in decrease in the demand of goods and services by African nations which in turn directly affected local economies. Many business people cancelled overseas trips, thereby putting on hold goods manufactured in China as a result of border closures. Chilufa (2020) maintained that the Coronavirus (COVID-19) affected supply chain distributions due to port closures in China and argued that no other country in Africa consumes more Chinese products than Nigeria.
COVID-19 affected businesses adversely and put so many in a precarious situation by truncating and reducing cash flow, sales volumes and profitability as well as making business owners panic about their business future in terms of sustainability, survival and growth, therefore resort to adjustments in their financial commitments to employees and business expansion by downsizing or pay half salaries. Imanche, Tasinda, Tian and Dalibi (2020) stated that due to Covid-19 pandemic so many countries experienced unprecedented economic slowdowns and shutdowns and in particular SMEs in Nigeria struggled to survive due to decline in production volumes and harsh market conditions. ACCA Canada (2020) reported that Covid-19 has negatively affected employees' productivity by 52%, launch of new products or services by 27% and cash flow stood at 23%. The pandemic threw business into a precarious situation and the threats to lives made various governments across the world including Nigeria put measures in place to curb the spread in terms of when businesses should open for sales and the type of business that should open to customers which affected sales volumes and profit margins. Profit maximization is an important ingredient that encourages business growth vis-a-vis expansions within and outside its locations as well as encouraging foreign investors. York (2019) stated that business owners should change mode of operation and reduce cost to maximize profit by maintaining maximum cash flow, raise market bar, staying visibly connected, streamlining management costs, and making everybody sales representatives.
It is pertinent to note that many countries had total lock down of all their economic activities; in particular all offices and businesses in Edo State whether government or privately owned and whether big or small business were forced to temporarily shut down. These businesses include big corporations, firms, Artisans, spare parts dealers, wholesales goods, service centres, hotels and hospitality businesses, pubic and civil services among others. It was only small businesses in the informal sector dealing on essential commodities such as food stuffs and drugs (pharmaceutical stores) that are of basic necessities to lives for survival that were allowed to open to customers with strict regulatory measures. The study therefore investigated the extent to which Covid-19 affected business sales volumes, cash flow and profit margin in Edo State and suggest intervention strategies to revamp the economy at post-covid-19 era.

Objectives
The main objective of the study was to assess the impact of COVID-19 on business in Edo State. Specifically the study established the extent COVID-19 affected the following: 1. Sales volume of business.
2. Cash flow of business 3. Profit margin of business 4. The possible strategies to revamp businesses at post COVID-19 lockdown.

Literature Review
Business is a commercial activity that involves buyers and sellers and it could be small, medium or large scale such as manufacturing, services, hybrid or merchandising. Small and medium businesses emphasize investment at the micro level, reduction of poverty and employment generation as well as the promotion of business links at the macro level. Adequate information and Knowledge, risk-propensity, social contact and innovations are key determinants for successful SMEs operations. The major forms of business include sole proprietorship, partnership, corporation and limited liability companies. Oriazowanlan, Olowo-Onyanemi and Umunna (2008) stated that there is no universally acceptable definition of SMEs and that what is regarded as SMEs is based on assessment in terms of sales volume, assets value and capital investment as well as number of employees. Duke II (20100 posited that the definition of SMEs is time-sensitive but could be based on indices such as assets base, annual turnover rate, capital employed, number of employees and market shares. Small and Medium Enterprises Equity Investment Scheme (SMEEIS) defined SMEs as any enterprise with a maximumassets base of #500 Million (excluding land and working capital). Wikipedia defines business as the activity entered into for profit making which could be sole proprietorship, partnership, cooperative, liability company, franchises, company limited by liability, shares and guarantee among others. Kale (2019) posited that small businesses are the businesses in Nigeria whose contribution is critical to economic growth. It is pertinent to note that cash flow determines the solvency of a business, prescribing the availability of cash that is generated or consumed in the business and it represents revenue growth, operating margin as well as capital efficiency of a business while profitability determine the future of any business. The negative impact of Covid-19 on the global economic and businesses in particular has been a strong distractor to investors in all spheres and strata of the economic including businesses. In particular small and medium business operations in Nigeria suffered a great set back due to cessation of movement and interstate border restrictions to curtail its spread to curtail the spread of Covid-19. Seen (2020) stated that during this time of COVID-19 crisis, businesses incur operating losses and maintained that during lockdown business meetings were held virtually and most times making it practically impossible to sign some agreed documents online, while some documents may not be visible for signature. Kim (2020) reported that the Consumer Electronics Division recorded lower earnings as a result of COVID-19 compared to a year before as well as decline in sales from TV business. In the same vein, Kilpatrick, Dess, and Barter (2020) maintained that tourism, hospitality, entertainment and air transportation suffered the negative impact of Covid-19 but businesses in consumer goods and retail faced higher financial risk especially by those having their supplies from China. Commenting on profit margin during Covid-19 pandemic, Singh (2020) reported that Puma's sales declined in the first quarter of 2020 due to impact of Coronavirus that is ravaging the global market.
The impact of Covid-19 is affecting sales volume of many businesses and White (2020) reported that Coca-Cola company global sales volumes fell by 25% in the first quarter of 2020 and stated that the company had a short fall in its sales to $8.6 billion, representing a fall of 1% compared to the same period a year before. The Covid-19 pandemic impacted positively and negatively on Nigerian economy and other nations in other parts of the world. In Nigeria, the sales of food stuffs and drugs and its auxiliary products which are basic necessities to lives increased tremendously while non-essential goods and services received low patronage. Coonrod (2020) stressed that distiller of Missouri Ridge Distillery maximized an increase of profit in the production of hand sanitizer during covid-19 pandemic. Influencer Marketing Hub (2020) stated that YouTube videos watchers in Italy increased 20 times growth considerably compared to same period in 2019. Aman (2020) stated that the Automobile sector has been badly affected by Covid-19 resulting from the sales of vehicle dropping to 683,000 units. Aman further stated that the sales of vehicles dropped to 197,000 units of vehicles compared to 328,000 units in 2019. Shaulova (2020) revealed that during the coronavirus in African nations and Nigeria in particular the sales of over-the-counter in healthcare items increased significantly. Sales volume of pharmaceutical products grew by 30 percent compared to the same period of the previous year. Meyer (2020) stated that sales volume of apparel dropped to as low as 20%. The economic crunch occasioned by Covid-19 pandemic affected cash flow in the Nigeria economy.
Cash flow could be regarded as the life blood of any business including small and medium businesses, be it privately owned or a limited liability company. Foss (2020) stated that as a result of the coronavirus pandemic, business owners are experiencing tight cash flow to run various arms of their business. Foss, Shah (2020) also stated that the major problem confronting business in this Covid-19 pandemic is the issue of cash flow which has been a hindrance to many organizations. Shah, further stated that many businesses are restructuring their operations to enhance their cash flows. Tregurtha (2020) identified the following to overcome cash flow difficulty and business uncertainties; organizations should provide business services virtually as result of social distancing as well as lockdown restrictions to control the virus spread which is capable of ruining small business cash flow. It is pertinent to note that the business needs to offer pick-up delivery service; e-commerce site or online delivery platform could be used to abate the challenges of restrictions on movements posed by Covid-19 pandemic.
The challenges posed by Covid-19 to business are enormous and it's a big blow to small and medium business across the globe including Nigeria and Edo State in particular. Businesses were completely shut down, some doing skeletal services, some downsized, while some are still reducing the pay packet of their workers. However calamitous this scourge appears to be, it has some advantages to business. This is why Allinson, (2020) stated that every challenge brings immense joy and opportunities. Du-Plessi (2020) opined that the ravaging of the Black Death to Europe between 1347 and 1353 brought about reconstruction and renewal of European society. This set the pace for renaissance. Davies (2020) opined that technology industry is taking the advantage of COVID-19 to excel in cloud computing, electronic payments, and ecommerce, among others. This also in consonance with Ministry of Social Development New Zealand (2020) which provides wage subsidy and support to business during COVID-19, and save workers from being laid off. Olubiyi (2020) explained that the use of technology in the areas of distribution, sales, after-sales service, and inventory management will help rescue business dormancy during Covid-19. This will make market to be extended across borders with the introduction of e-commerce, shopping, bargaining, and transactions can be done anywhere which makes businesses accessible everywhere. E-commerce platform gives business owners the clear vision and the precautionary measures required during pandemic. During Covid-19 Pandemic, shopping cost, transaction and operational costs are drastically reduced. This can also enhance business to continue despite restriction orders. It is a 24-hour trading without physical contacts. Olubiyi concluded that during Covid-19 pandemic, business revenues and sales improved market reach, access to new markets and cost savings in marketing and communication expenditure are greatly enhanced. Russia Statistical Research Department (2020) stressed that coronavirus (COVID-19) outbreak has helped their company to produce desired result, as well as making their workers to be ready to work for less pay up to 20 percent. Russia Statistical Research Department further stated that Covid-19 has helped companies to take proactive decision in increasing its effectiveness, adoption of new technology, cutting costs, taking unpopular decisions, and having new opportunities.
Imanche, Tasinda, Tian and Dalibi (2020) carried out a study on the effect of Covid-19 on SMEs in Nigeria and it revealed that the cessation of movement, reduction in consumer spending power and decrease in imported goods negatively affected SMEs in Nigeria. They also opined that due to Covid-19 pandemic only fewer investors were willing to pump money to enable the sustainability of SMEs while the decrease consumer spending automatically reduced the income of SMEs. The temporary closure of non-essential enterprises decreased output and production. A study carried out by Enemona, Muhammed and Usio (2020) on the effect of Covid-19 on SMEs in Lokoja, Nigeria revealed that Covid-19 inhibited normal SMEs activities and operations; reduced their income, increased prices of materials input and downsizing of workers, decline in demand for products due to restriction of movement. A study carried out by Oyewale, Adebayo and Kehinde (2020) on the effect of Covid-19 on Entrepreneurs in Nigeria revealed that majority of the entrepreneurs in Nigeria were affected by Covid-19 pandemic lockdown both severely and slowly which had increasing effect on low sales among enterprises especially for non-agricultural produce but contrary on agricultural produce (food).

Methodology
The descriptive survey research design was employed. One thousand one hundred and seventeen (1117) business owners in Edo State constituted the population. Purposive sampling technique was used to select a sample of two hundred and thirty five (235) respondents. Data was collected with the aid of a questionnaire made of two parts. Part 'A' is respondents' bio-data; while 'B' had 39 item statements measuring the various constructs identified in the research questions. The instrument was pilot tested by administering it on a sample of 30 respondents distinct from those of the study sample. The Cronbach Alpha form of reliability was carried out and a reliability coefficient value of 0.79 was obtained. The researcher engaged the services of six research assistants in administrating the questionnaires to business owners and data collected was analyzed using mean and standard deviation. The value of 2.50 was the mean criterion. Therefore, a calculated value greater than 2.50 was high extent while below 2.50 was low extent.

Research Questions One:
What is the extent of Covid-19 pandemic effect on the sales volume of small and medium business in Edo State? All the items were rated low extent except items No 8 that was rated high extent. The grand mean of 1.95 indicated low extent shows that sales volume was low during COVID-19 pandemic Research Questions Two: What is the extent of Covid-19 pandemic effect on the cash flow of small and medium business in Edo State? Items 9,10, 12, 15 and 16 were rated high extent while items 11, 13,14, and 17 were rated low extent with a grand mean of 2.38 which indicated that cash flow was low during CVID-19 pandemic lockdown. Research Questions Three: What is the extent of Covid-19 pandemic effect on the profit margin of small and medium business in Edo State?  ,19, 20,22, 23, 28, 29 and 30 were rated low extent. The grand mean of 2.22 indicated that all the profit margin was low. Research Question Four: What are the possible strategies for effective small and medium businesses management amidst COVID-19? All the Items rated high extent with a grand mean of 3.00 which indicated that all the items raised will ensure effective small and medium business management amidst Covid-19.

Discussion of Findings
The findings of this study revealed that sales volume was very low during COVID-19 pandemic. This finding is in agreement with White (2020) who opined that the Coca-Cola company sale volume dropped during COVID-19. The finding is also in agreement with Bodnar (2019) who opined that sales dropped considerably during COVID-19 period. The finding is in agreement with White (2020) who reported that Coca-Cola company global sales volumes fell by 25% in the first quarter of 2020. White further stated that the company experienced a short fall in its sales $8.6 billion, representing a fall of 1% compared to the same period a year before. This finding is in consonance with Aman (2020) who stated that the auto sector has been badly affected by Covid-19 resulting from the sales of vehicle dropping to 683,000 units. Aman further stated that the sales of vehicles dropped to 197,000 units compared to 328,000 units in 2019. Also it is agreement with Imanche, Tasinda, Tian and Dalibi (2020)who stated that due to Covid-19 pandemic only fewer investors were willing to pump money to enable the sustainability of SMEs resulting in the decrease of consumer spending and automatically reduced the income of SMEs. It also agreed with Oyewale, Adebayo and Kehinde (2020) who stated that Covid-19 pandemic lockdown affect entrepreneurs both severely and slowly which had increasing effect on low sales among enterprises especially for non-agricultural produce but contrary on agricultural produce (food).
The findings equally revealed that cash flow was very low during COVID-19. This is in consonance with Tulder (2020) who opined that businesses cash flow is significantly impeded and discount rates higher during COVID-19 era. The researcher also opined that COVID-19 has brought liquidity issues to businesses thereby making companies to be distressed financially. The finding is also in consonance with Finkel (2020), who emphasized that during COVID-19 business expenses appear too high in relation to volume of sales which invariably affects cash flow. The finding is in consonance with ACCA Canada (2020) which reported that Covid-19 has negatively affected employee productivity by 52%, launch of new products or services by 27% and cash flow stood at 23%. The finding is also in agreement with Foss (2020) who stated that as a result of the coronavirus, business owners are experiencing tight cash flow to run various arms of their business. The finding is also in agreement with Foss, Shah (2020) who maintained that the major problem confronting business in this Covid-19 pandemic is the issue of cash flow which has been a hindrance to many organizations.
It also revealed that profit margin was low during COVID-19 pandemic lockdown. The finding is in agreement with the finding of LaPointe (2020) who maintained that there was a drop in profit generated by hospital compared to previous periods before Covid-19. This may not be unconnected with the fact that people were scared to go to the hospital to treat other ailments for fear of contacting Covid-19. It also agreed with Goldstein (2020) who stated that big companies used their reserves to give out loans to companies on high interest rate. Also with Kim (2020) who reported that the Consumer Electronics Division recorded lower earnings as a result of COVID-19 compared to a year before as well as decline in sale from TV business. The finding of Kilpatrick, Dess, and Barter (2020) also agreed with the findings which stated that tourism, hospitality, entertainment and air transportation had felt the negative impact of Covid-19 with complete shut down and low patronage. Singh (2020) finding is also in consonance with the findings which reported that Puma's sales declined in the first quarter of 2020 due to impact of Corona virus that is ravaging the global market. It also agreed with Enemona, Muhammed and Usio (2020) who stated that the effect of Covid-19 in nigeria inhibited normal SMEs activities and operations and reduced their income. The findings also contradicted Ludwig (2020) assertion who maintained that food delivery services were in high demand also with Egba (2020) who stated that MTN Telecommunication Company made a steady growth during the pandemic period owing to the enforced lockdown. This may not be far from the fact that people were indoors and the only means of reaching out was through mobile communication and online services. The finding also contracted Switzerland (2020) who reported that e-commerce sales reached 29.4% which exceeded 10% of total Group sales before Covid-19. The finding is equally in contrast with Coonrod (2020) who stressed that distiller of Missouri Ridge Distillery maximized an increase of profit in the production of hand sanitizer during covid-19 pandemic.
Moreso the finding is in agreement with Davies (2020) who noted that technology industry is taking the advantage of COVID-19 to excel in computing, electronic payments and ecommerce. The finding is in agreement with Allinson (2020) who stated that every challenge brings immense joy and opportunities. The finding agrees with Du-Plessi (2020) who stated that the ravaging of the Black Death to Europe between 1347 and 1353 brought about reconstruction and renewal of European society to set the pace for renaissance. The finding is in consonance with Dorsey (2020) who opined that during pandemic, governments set aside their differences to have a political will and foresight to build a world good for all that will be equitable politically, economically and socially. The finding is in consonance with Olubiyi (2020) who explained that the use of technology in the areas of distribution, sales, after-sales service, and inventory management will help rescue business dormancy during Covid-19. This will allow market to be extended across borders with the introduction of E-commerce, shopping, bargaining, and

Conclusion
The study revealed that COVID-19 impacts negatively on small and medium businesses profit margin, sales volume, cash flow. Although essential goods such as foodstuffs and drugs had positive impact during the period the cessation, restriction of movement and temporary lockdown affected businesses negatively by reducing sales volume and cash flow which affected profit margin. Therefore, business owners should engage more in online sales to increase sales volume and develop other strategies to enable massive savings to surmount crises that could be contingent and inimical to businesses.

Recommendations
1. Business owners should stay in close contact with their customers through email and social media platform. 2. Business owners should closely work with their vendors and suppliers to avoid cash crunch and ensure steady cash flow. 3. Suppliers who are credit worthy can supply goods on credit basis. 4. Business owners should also look for financial help from either state, local, and federal authorities. 5. Business owners should develop other strategies to enable their massive savings to surmount crises that could be contingent and inimical to their businesses

Contribution to Knowledge
The study has empirically provided insights for effective business management amidst Covid-19 and advocated adequate steps to be taken to salvage the situation. The findings of the study will help business owners whose businesses are already collapsing amidst Covid-19 to revamp the sales volume, increase cash flow and maximize profit.