Effects of corona-virus outbreak on micro and small scale enterprise operation in southwest Ethiopia

Abstract

Goal: This examination is expected to survey the effect of COVID-19 for micro and small scale enterprise activity in southwest Ethiopia. Design/methodology/approach: The current study used the graphic exploration plan which includes 346 micro and small-scale enterprises. Enterprise proprietors, government authorities, and specialists were invited to answer self-administered questionnaires and information was also acquired from archive audit of different reports and exploration results zeroing. Result: The analysis reveals that the outbreak of the pandemic had a negative impact on production, employment, profit, seals level, operation costs and cost of raw material by 59%, 35%, 78%, 72%, 49%, 10%, 10%, 31% and 59% respectively. The virus also has a 10% 9% and 8% impact on local government tax revenue collected from the urban, services, and construction sectors, respectively. The virus has no impact on the manufacturing industry but has a positive effect on the trading sector; finally, the outbreak had a significant impact on the enterprises supply chain with a rate of 48%. Limitations of the investigation: The examination have the accompanying constraints first; the consequences of this investigation are not summed up to different segments other than Micro and small scale enterprise. Second the investigation utilized qualitative data that can’t fill the advantage of quantitative data. Thus, there must be further examination on the effect of COVID 19 in various benefit arranged and non- benefit arranged associations and even in the micro and small scale enterprise by joining other comports of operation that have not been contacted in the investigation. Practical implication: The result of this study has some important implications for micro and small scale enterprise owners and the government.  In this way, the examination gives insight to micro and small scale enterprise to take activities like moving their activity to related business and creation of right now requested defensive materials. Moreover, the investigation gives insight to the government and different partners on how COVID 19 affects both the micro and small scale enterprise as well the public tax. Originality/ value: This study is the first of its kind up to authors’ knowledge, and the data was collected from the most authentic sources.