INFLUENCE OF COVID-19 PANDEMIC ON STRATEGIC PERFORMANCE OF MICRO AND SMALL ENTERPRISES IN MANDERA EAST SUB-COUNTY, KENYA

Abstract

Micro, Small and Medium Enterprises (MSMEs) play a significant role in the economic development of a country. This study sought to assess the influence of covid-19 pandemic on strategic performance of micro and small enterprises in Mandera East Sub-County. The specific objectives of the study are; to establish the effect of MSMEs survival on strategic performance of micro and small enterprises in Mandera East Sub-County. To establish the effect of staff laying off on strategic performance of micro and small enterprises in Mandera East Sub-County. To establish the effect of MSMEs ability to repay on strategic performance of micro and small enterprises in Mandera East Sub-County. To establish the effect of demand and supply on strategic performance of micro and small enterprises in Mandera East Sub-County. The target populations was 2000 SMEs by the year 2020. A stratified random sampling approach was used for the study to ensure the presence of the key subgroups within the sample; the sample size was 100 respondents. Questionnaires were used in collecting information from 100 SMEs from Mandera East Sub count. The pilot study was conducted on 15 SMEs Mandera West Sub County. The data was then analyzed by the use of SPSS software. The study found out that whether MSMEs have come up with innovative ways to survive, majority of respondent disagreed. On whether there is risk losing their employment permanently if the threat of COVID-19 and associated containment measures persist. On whether MSMEs experienced a larger decline in businesses activity compared to medium and large firms, majority of respondents were neutral. On whether Covid 19 outbreak has led to shortage of essential products and services for MSMEs, majority of respondents disagreed. On whether the outbreak of COVID-19 has severely affected the MSMEs current performance and the overall business performance, majority of respondents were neutral. The study concluded that MSMEs have not come up with ways to survive through the pandemic and stay in operations. Majority of respondents were unsure on the future prospects of their businesses surviving the pandemic. The extent of decline in business activities could not be determined with certainty. Some essential products were available although they were in small quantity. Most MSMEs had capital but experienced the decline in their business operations. The study recommended that MSMEs owners and managers should come up with ways of surviving the ongoing pandemic like diversifying to other products. The government should provide funds that will caution MSMEs from the effect of the pandemic. The government should help MSMEs streamline it supply chain operation through removing barriers that causes shortage of goods and services for MSMEs.