By Donstance Koroma
A recent survey has been conducted by the Sierra Leone SME Forum, Africa Consulting Group and Business Coalition on COVID-19, with regards how the country’s Micro, Small and Medium-sized Enterprises (MSMEs) are navigating the economic disruption resulting from COVID-19 and how it will impact and affect their decisions and prospects.
The survey was reportedly conducted to ascertain how the MSMEs are coping with the COVID-19 outbreak, assess the current level of financial fragility among MSMEs, ascertain measures taken to adjust to the realities of the period and the types of support needed to survive even after the crisis period.
The survey exposes the impact of the virus on businesses across the country, especially MSMEs that are becoming unbearable. It was also aimed at understanding the impact of the virus crisis on MSMEs, especially considering the two nationwide lockdowns and other issues associated with the period, more specifically as it seeks to determine the challenges on businesses.
The survey captured 1,674 MSMEs comprising 60% of females and 31% of males participated in the survey, coupled with 42 Â Â leaders of MSMEs that participated in an online experience sharing session. The survey identified agriculture, fashion and manufacturing as having the highest followed by education, retail and health.
Other sectors that the survey captured included beauty cosmetics, information technology, social services, media and transportation. Â Â The report stated that the Micro, Small medium Enterprises find it difficult to access finance and the advent of the world deadly virus has made matters even worse.
MSMEs see great value in collaboration and partnership, as funding, as a major support, is needed, the report highlighted. The survey report noted that the pandemic has caused unprecedented panic and disruptions for both public and private sectors. He referred to the crisis as an existential threat to the global economy, with governments and businesses grappling with the effects.
The report identifies growing apprehension as to the eventual impact of the pandemic, especially for economies. The report continues that the health impact of the crisis is substantial; the economic effects are no less devastating especially for businesses.
The pandemic, the survey continued, has generated critical challenges for micro, small and Medium Scale Enterprises in the country, forcing many to shift focus from routine operations to crisis management and alternative business response efforts.
The impact, the survey stated, is already manifesting in the area of sales and services, which are all measures to cushion the adverse implications, opportunities, challenges, support measures and chances of business survival.
According to survey findings, with the government restricting movement and also the shutdowns of business activities in most parts of the country, MSMEs expectedly are counting the losses in terms of income that the report reflected in the responses as most of the businesses have experienced low sales and services.
93% of the MSMEs reported decline in income while only 7% reported increase in incomes, the report stated.
This decline, the report noted, is particularly sharp as only businesses operating in the food, pharmaceutical and other essential services are allowed to operate; although, on apprehensive conditions, every other MSMEs in all other sectors of the supply chain have been impacted .
Additional information gathered by the SME Forum, from Statistics Sierra Leone, revealed the degree of contribution to the Sierra Leonean economy cannot be taken for granted. Economic crisis for MSMEs is inevitable. However how deep and long the downturn will be depends on the workability of measures to assist MSMEs.
The survey examines the massive disruptions that are already occurring in the country’s MSMEs ecosystem and the limited financial resources that these businesses have to operate.