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

Abstract

The negative impact of COVID-19 pandemic on both lives and businesses was quite enormous. The study therefore assessed its impact on businesses in Edo State of Nigeria. It determined the effect of lockdown occasioned by the pandemic on sales volume, cash flow and profit margin of small and medium business owners amidst covid-19 era. 1119 business operators constituted the study population and a sample size of 235 respondents were randomly 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 being an unforeseen circumstances which was contingent truncated business growth and rendered many liquidated. It was therefore recommended that business owners should use online business transaction more often to increase sales volume, facilitate a steady cash flow and maximize profit amidst Covid-19 as well as develop other strategies to attract massive savings in order to surmount crises that could be contingent and inimical to their businesses

Keywords:  Coronavirus Pandemic (Covid-19), Lockdown, Small and Medium Businesses and Edo State

DOI: 10.7176/EJBM/13-10-07

Publication date:May 31^st 2021