Covid-19’s Socio-Economic Impact On Small and Medium Enterprises and Household Income in Enugu State, Nigeria: The Political Economy Perspective (Published)
The COVID-19 pandemic transformed the world economy and brought about a new normal; among other things, businesses suffered a setback, with household incomes decreasing as a result of job losses and company closures. The main objective of the study is to examine how COVID-19 has affected small and medium-sized companies in Enugu State from a socioeconomic perspective and how that has affected household income. Both primary and secondary sources were employed to gather the data. Small- and medium-sized business owners as well as households in the Enugu metropolitan area received hundred (100) surveys. A percentage and frequency table was then used to assess the data that had been gathered. The results show how the COVID-19 epidemic has impacted consumers’ short- and medium-term purchasing power as shown by the rise in demand for critical commodities at the expense of non-essentials due to panic buying. Second, SME operators have a sizable problem as a result of the COVID-19 pandemic-related fall in crude oil prices and the country’s currency’s subsequent depreciation. Thirdly, the ability of small and medium-sized enterprises (SMEs) to operate is harmed and/or they have severe liquidity issues as a result of a steep and rapid decline in demand and revenue. Consumers also experience loss of income, fear of the disease spreading, and greater uncertainty, all of which have a negative impact on their spending and consumption. The study found that by ensuring investment and providing relief to households, the government and big businesses should maintain acting to lessen the impact of COVID-19 on businesses and household income.
Keywords: COVID-19, Political Economy, Socioeconomics, and household income, small and medium businesses