Effect of Covid-19 on the success of micro and small-scale businesses: a case study of Wandegeya, Kikoni, and Kikumikikumi, Kawempe Division

Abstract

The study pursued to establish the impact of covid-19 on the success of micro & small-scale businesses in Wandegeya, Kikoni, Kikumi-Kikumi, Kawempe Division. The objectives of the study to establish how the demographic and socio-economic characteristics of the firm owner (micro or small scale) are associated with sales during covid19. The study used a cross section study design was used where quantitative methods of data collection were applied. Simple random sampling method was used, and a sample 68 participants was selects. The data obtained was presented at three levels; univariate, bivariate and multivariate analysis. From the analysis, 29% of the businesses had an increase in sales during covid-19, and 71% had a decrease in sales during covid-19 pandemic. Pearson chi-squared measure of association at 5% level of significance showed that gender, business type, change of operation, and covid-19 impact on suppliers had a significant relationship with increase in sales since their p-value was less than 0.05. Binary logistic results showed that the females had lower odds of having increase in sales than the males, those in carpentry and metal fabrication had lower odds of having an increase in sales than those in salons, those dealing in grocery and vegetable stalls had higher odds of having increase in sales than those in salons, those in chapatti/restaurants/bakery had higher odds of having an increase in sales than those in salons, and finally those in transport had lower odds of having an increase in the sales than those in salons keeping other factors constant, businesses that didn’t change operation to protect their businesses had lower odds of having an increase in the sales than those who changed their operation, and lastly businesses whose suppliers were moderately injured by the pandemic had higher odds of having an increase in the sales than those that were severely injured keeping other factors constant.