The effects of COVID-19 on SME business owners and their coping strategies: qualitative evidence from Bangladesh

Purpose The study aims to investigate the effects of COVID-19 on small and medium-sized enterprises (SMEs) owners and their coping strategies in the context of Bangladesh. Design/methodology/approach A qualitative case study has been applied to attain the research objectives. Data have been collected through semi-structured personal interviews with ten SME owners, while most of them are directly connected with SME training. The NVivo software was used to analyze the data. Findings The study finds that SME businesses slowed slowdown during COVID-19. SME owners have to bear losses. The sales were also slower than before, which hampered the profit margin at a lower level. Most of the SME owners did not get any help from banks and financial institutions, NGOs, or any other microfinance institutions. Moreover, SME’s employees were affected with Coronavirus, which also made the business growth slow as well as the negative psychological impact in terms of business survival challenges. They spent their saving and took loans from their relatives during that time. SME owners got the support from their community during the COVID situation. In addition, government supports are not sufficient for them to survive. Research limitations/implications This study has significant implications for policymakers, government, SME Foundations, trade organizations and NGOs. First, the findings will be beneficial for the government to focus on the development of the SME industry. Second, this study will help the SME Foundation in developing a deeper understanding of the support needed by SMEs in sustainable financial systems. Originality/value This study focused on the effects of COVID-19 on SME business owners and their Coping Strategies.