SME Survival During the COVID-19 Pandemic: An Outlook of Threats and Digital Transformation

Introduction

The epidemic caused by COVID-19 is sending shockwaves across the global economy and causing major disruptions to people's daily lives and the global economy. COVID-19 is a major health emergency but is also much more than that. It is a metabolic jolt with serious short-, intermediate-, and long-term consequences. The quarantines and social isolation enacted in many nations to stop the spread of the virus has delayed production and increased prices for consumers everywhere. Unemployment and work stoppages have increased as firms have closed and individuals have stayed at home, reducing demand for goods and services. Businesses of all sizes have been forced to close their doors because of this epidemic, and tens of millions of people have lost their jobs. Micro, small, and medium-sized businesses serve as the foundation of many global economies, making the significance and value of these businesses crucial. Small and medium-sized enterprises (SMEs) are significant in today's globalized world. The status of the global economy affects both the challenges and opportunities faced by small and medium-sized enterprises (SMEs) that rely on the long-term growth enabled by smartphone applications. Nonetheless, COVID-19 has presented substantial challenges for SMEs across a variety of countries and sectors.

Figure 1.

SMEs in covid-19 outbreak

Source: Buchholz, 2020

In emerging countries like India, SMEs make up the vast bulk of all firms. Numerous governmental and non-governmental organizations (NGOs) have provided various forms of help to SMEs to prevent the collapse of this crucial sector brought on by the COVID-19 crisis. In this chapter, we will delve more into the difficulties encountered by SMEs, the digital changes implemented for their benefit, and the tactics developed by the government during this pivotal time.