IMPACT OF COVID-19 PANDEMIC ON PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES IN THE SERVICE SECTOR IN NAIROBI COUNTY
Abstract
Pandemics have been a major catastrophe to humankind since a long time ago. Recently, COVID 19 pandemic has brought the world to a stop still with its outbreak. The negative impacts of the COVID 19 disease and the restrictions enacted to control the spread of the disease have been felt by service sectors all over the world that require face to face contact. The protocols set by the government on social distancing and travel restrictions have affected the demand and also the supply chain for not only the small and medium enterprises but also the large companies. This study, therefore, investigated the impact of the COVID19 pandemic on the performance of micro, small and medium enterprises in the service sector in Nairobi County. The study adopted a systemic review approach to identify and select data from studies in a clear and comprehensive way. The findings of the study indicate that the impact of the COVID 19 outbreak on MSMEs have brought about job layoffs, reduced profit margins, reduced business activities, increased costs of operations in maintaining health safety measures, decline in productivity, constraints in obtaining credit and settling debts and finally closure of the business. The impacts and potential threats from COVID 19 are still undefined, it is therefore paramount for small businesses to reinvent themselves by adopting technological strategies that will enable them to still conduct their businesses with their customers contactless during this period of COVID and yonder.
Key Words: Covid 19, Micro, Small and Medium Enterprises, Performance
CITATION: Kiwara, G. (2021). Impact of Covid-19 pandemic on performance of micro, small and medium enterprises in the service sector in Nairobi County. The Strategic Journal of Business & Change Management, 8 (1), 826 – 834.
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DOI: http://dx.doi.org/10.61426/sjbcm.v8i1.1952
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