Economic Shocks and SME Performance: Survey Evidence on Covid-19's impact in Southeastern Nigeria

This study investigates the impact of COVID-19-induced economic shocks on the performance of Small and Medium Enterprises (SMEs) in Southeastern Nigeria, with a focus on urban commercial centers in Anambra State. Using a survey research design, data were collected from 300 randomly selected SME owners through structured questionnaires and semi-structured interviews. Descriptive statistics and thematic analysis were employed to examine the effects of the pandemic on business operations, revenue, supply chains, and financial stability. Findings indicate that COVID-19 had a significant adverse effect on SME performance, with 36.7% of respondents reporting very high negative impacts and 31.7% experiencing severe revenue declines. Operational disruptions were mainly due to reduced customer demand (33.3%) and supply chain delays (30.0%), while financial difficulties included diminished cash flow, liquidity, and access to capital. SMEs responded with coping strategies such as digital/online sales (30.0%) and cost-cutting measures (28.3%), although government and institutional support was perceived as only moderately effective. The study underscores the vulnerability of SMEs to economic shocks and highlights the need for proactive business continuity planning, targeted external support, and capacity-building initiatives to enhance resilience against future crises.