FATE Foundation and BudgIT surveyed Micro, Small and Medium Enterprises in Nigeria amid the Covid-19 pandemic, aiming to drive stakeholders in the ecosystem to engage in urgent interventions to enable businesses thrive during and after COVID-19.
Here are its key findings:
Overall Impact: The report analyses responses from 1,943 Micro, Small and Medium Enterprises (MSME) across Nigeria’s 36 states and the Federal Capital Territory (FCT). It shows that 94.3% of businesses surveyed reported being negatively impacted by the pandemic, particularly in their Cash flow, Sales and Revenue.
Surviving the Pandemic: The report shows that despite the negative impact of the pandemic, about 47% of the respondents were positive that their businesses will survive the pandemic. About 22% are unsure and 30% report that their businesses will not survive.
Cash flow Constraints: A significant number of the businesses had cash flow challenges, with 13% indicating enough cash flow to run operations for one to three months. About 33% had enough cash flow to stay operational for only one to four weeks, and about 27% for only one to seven days.
Jobs: Jobs were impacted as 82.8% of the businesses reported were likely to lay off one to five employees.
Opportunities: Close to 50% of the businesses were able to identify opportunities along the lines of creating new products and services, expansion and diversification, etc. Most businesses reported need for support with cash flow, sales, funding and access to markets.
Recommendations: The report makes key recommendations to government, enterprise support organisations, and private sector and development sector stakeholders on the design and implementation of policies and programmes that provide funding and business support for MSMEs. It calls for targeted policy interventions that enable their resilience, and promote the survival of such vulnerable segments as micro enterprises, women entrepreneurs and young entrepreneurs.
To read the full report, click here: Impact of Covid-19 on Micro, Small and Medium Enterprises in Nigeria