COVID-19: CONTINUITY AND RECOVERY STRATEGY FOR SMALL AND MEDIUM ENTERPRISES- LITERATURE REVIEW

Abstract

Globally, the Covid-19 pandemic has caused unprecedented shockwaves in all sectors of the economy.
The unprecedented cataclysm has been severely felt in the third world countries like Kenya and especially
so in the Small Medium Enterprises (SMEs) which form the backbone of the economies of these countries.
The ramifications of Covid-19 are of serious concern to the SMEs sector that caters for the employment
of the ballooning global population. The impact of Covid-19 on SMEs sector is acute and it is important
that recovery is essential for the eventual survival of the sector in the normal way of living. The aim of
this paper is to review the impact of Covid-19 on SMEs and responses of governments on continuity and
recovery strategies. This was a qualitative study using secondary data resources, research papers, case
studies, stakeholder reports and other online sources. The paper is anchored by the Sociological
Ecological Theory of Murray Bookchin in 1960. The results showed that Covid-19 crisis had a
devastating impact on SMEs globally. A good proportion of SMEs were totally annihilated and the
remaining facing a dire struggle to survive. The pandemic did not discriminate between the SMEs in
developing and developed countries. In terms of continuity and recovery strategies, developing and stable
economies like USA, India and South Africa were able to offer financial assistance. However, in
developing countries, due to financial constraints, the governments were not offering requisite Covid-19
assistance to SMEs. The paper recommended that governments and especially in developing countries
should set aside funding for SMEs support. In addition, to enhance durability and resilience during
pandemics, SMEs and especially those in the developing countries need to adopt unorthodox thinking and
execution of innovative strategies. Finally, SMEs owners/managers/decision makers should undertake
SWOT analysis of the business strategy in order to establish the resources availability and capabilities of
the SMEs during crisis.
Key words: SMEs; Covid-19; Continuity; Recovery; Strategies