THE IMPACT OF COVID-19 ON SMALL BUSINESS - THE CASE OF SMALL ENTERPRISES IN SOME COUNTRIES OF THE WORLD

Abstract

Small manufacturing businesses as well as small businesses in the service sector have always been typical economic entities of market economies in every country of the world. They make a great contribution to job creation, especially through self-employment. So small business offers more employment opportunities than big business. This means that they significantly affect the reduction of the unemployment rate through the contribution to the overall development of the economy. So, small business is considered as the driving force of economic development, therefore any shock to the economy caused by various factors, directly affects the activity and activity of any small business. The global economy is continuing to suffer the consequences of the major shock caused by the coronavirus pandemic. The crisis caused by COVID-19 has affected many sectors, but from the data we have, in reality the most affected sectors are tourism and other related services, but also the manufacturing and export industries. This is caused as a result of numerous restrictions between different countries of the world. The impact on the economy has been serious enough due to restrictions on movement which have led to a reduction in demand but also supply as a result of limited labor supply and due to difficulties in securing raw materials. The largest percentage of firms in each country were forced to close their business activity, while the rest that continued to remain open have experienced significant declines. So, most businesses have suffered significant revenue losses due to the COVID-19 crisis. Various data and analyzes have shown that small business is more and more severely affected than large business. Total closure for a long period has resulted in a huge loss and fears that a second wave of closure could be fatal for small business. Larger layoffs are observed in small enterprises due to their inability to keep their employees in the workplace. In addition to this concern, the concern of the manufacturing sector is the loss of production capacity. Understanding the importance and value of small business in the economy as a whole, this research aims to gather evidence regarding the possible effects of the COVID-19 pandemic on business and its activity as well as to reveal the negative effects as a result of the shock caused by the recent global economic crisis. This study was undertaken to obtain a concise overview of the impact of the COVID-19 pandemic on small enterprises in several countries of the world used as valuable examples to clarify the negative impact on these businesses.