The effects of COVID 19 on Micro Small and Medium Enterprises (MSMEs) in Kyebando Parish, Kawempe Division Kampala

Abstract

The study examined the effects of covid 19 on micro small and medium enterprises (msmes) in Kyebando parish, kawempe division Kampala. The study specifically looked at economic challenges and opportunities faced by small and medium enterprises as a result of Covid 19 restrictions, determinants of economic challenges and opportunities caused by Covid 19 restrictions on SMEs and the coping strategies being used by small and medium enterprises amidst Covid 19 restrictions in Kyebando Parish, Kawempe Division as the research objectives. The study used both qualitative and quantitative research approach using survey as research design. Qualitative method was used to promote better self-understanding and increase insight into the conditions and experiences of SMEs through the use of questionnaires to capture their views and opinions. Quantitative method was used to demonstrate relationships between the variables of interest to provide the basis of conclusions and recommendations. Data was collected from micro, small and medium sized enterprises within the parish of Kyebando in Kawempe Division. The finding of the study revealed that most of the respondents lost all their customers during the lockdowns and the goods got spoiled during the lockdowns. Most of the respondents reported that Life became very hard for them when the business was paused and they could not afford to generate income during Covid restrictions. most respondents reported that their clients became broke and they could not afford to buy their products/services due to restrictions. The study found that the top three coping strategies used by most businesses were boda bodas to get supply of their products, some were getting orders and delivering their services online and lastly, they sold their goods by the road side since the markets and shops were closed. Among the above top three coping strategies, the most effective one was they devised a better mode of getting orders and delivering goods to the clients. Government should encourage people to finish schooling at least up to lower and upper secondary. This will help increase the performance of business in the country since business of secondary graduates perform better than for primary graduates. Government should also put much emphasis to young people because young people are much more vulnerable to business challenges will older people are more resilient. Therefore, they need mentorship. Social workers should work hand in hand with the government to encourage and design business models that can help business improve in their performance. This study focused on the effects of covid 19 on micro small and medium enterprises (msmes) in Kyebando parish, kawempe division Kampala. This study recommends that another research be conducted focusing on socio demographic and economic factors that contribute to business startup by young people.