Economic Impacts of COVID-19 on Microfinance Institutions and Small Businesses: Empirical Survey from Somalia

Abstract

The microfinance institutions promote the entrepreneurial innovations that contribute the fundamentals of a healthy economy and job creation opportunities. In Somalia, the small businesses have ever been valuable resources to encourage the economic sustainability of Somali country. After the destruction in January 26, in 1991, the people of Somalia have relied on the entrepreneurial skills to develop small businesses on which the lives of many Somali people have hinged. Therefore, this study assesses the economic impacts of covid-19 on microfinance institutions and small businesses. The study follows descriptive correlation. The overall sample consisted of 40 participants in Benadir region.  The study found that covid-19 has negative impact on both microfinance institutions and small businesses as shown by the mean index of microfinance institutions 1.72 and standard deviation 0.48, likewise, the mean index of small businesses scored 1.86 and standard deviation 0.69.

Key words: Economic impacts, Covid -19, Microfinance Institutions, Small Businesses, Benadir region

DOI: 10.7176/EJBM/13-6-21

Publication date:March 31^st 2021