The effect of covid-19 on Small Medium Enterprises (SMEs) in Uganda a case study of Makerere-Kikoni
The primary purpose of the study was to establish the effect of covid-19 on Small Medium Enterprises (SMEs) in Uganda. A case study of Makerere-Kikoni. The objectives of the study included; • To determine whether the reduction in business revenue is associated with the covid-19 situation. • To determine whether the Small Medium Enterprises laid off workers due to the covid-19 situation. • To determine whether the profitability of Small Medium Enterprises was affected during the COVID-19 situation. The research design for this study was qualitative and quantitative to collect and compile useful information on the effect of covid-19 on small medium businesses (SMEs) in Uganda. The qualitative method looked at how Covid-19 has affected small medium enterprises around Makerere-Kikoni. The study revealed that reduction in business revenue associated with Covid-19 situation, results show that, 55.5 % of the respondents strongly agreed that there was a reduction in business revenue as a result of Covid-19 situation. The determination of whether the Small Medium Enterprises laid off workers due to the covid-19 situation show that it cannot out rule 55.5% who are in agreement with the statement. Finally, the determination of whether the profitability of Small Medium Enterprises was affected during the COVID-19 situation, results indicated that 28.8% of the respondents agreed that Covid-19 affect business performance. This is attributed to various functions of Covid-19 in relation to decision making process. Most vital business decisions are made basing on the past and its records keeping practices that provide information relating to past transaction. The researcher recommended that there should be cooperation and collaboration between the SMEs and the banking institutions where they will provide a soft loan to these firms to help them increase their operations. Again, the researcher recommended that the banking institutions should focus on the nature of the business and the ease of recording cash inflows than the security requirement. This will help those who cannot provide security to also have access to loans to expand their businesses.