Complications of SME Sector Due to the Outbreak of COVID-19 and Projections on it: A Study on Cumilla District

Abstract

Most of the economic sectors of the world are affected by the unembellished outspread of Covid-19. The economy of Bangladesh could not go beyond its adverse effect. This study tries to determine the complications of the SME sector of Cumilla district due to the outbreak of the Covid-19 pandemic situation and to indicate some strategic choices to adapt to the hostile Covid-19 situation. Setting three possible strategies of the SMEs to adapt adverse Covid-19 conditions, the binary logistic model is used in this study and found that asset level and labor force management have a significant impact on the decision making of the SMEs. Kendall’s W shows that ‘a decrease in revenue earnings’ is the most pressing constraint faced by the SMEs during the period. To survive in the market, individual attempts of the SMEs may not be fruitful at all, stakeholders should come forward soon.