Covid-19 Pandemic and the Informal Sector in Nigeria: Implications for Sustainable SMEs

Abstract

The Covid-19 epidemic has generated an unprecedented health crisis, with numerous terrible outcomes, and has impacted every element of social and corporate activity around the world, putting around half of the world's economic activity under stress, as well as supply chains. This study examined the implication of Covid-19 pandemic on the sustainability of small and micro entrepreneur business in the informal sector in Nigeria with specific focus on Ose market in Onitsha, Anambra State. The study specifically analyzed the effect of covid 19 on informal SME, extent of risk and vulnerability and how small and micro businesses were sustained within the period of pandemic. Multi-stage, purposive and random sampling techniques were used in selecting 150 small and micro entrepreneurs business in the informal sector in Onitsha from which data used for the study were collected. Primary data was collected using questionnaire instruments. The study reveals that, Covid-19 exerted significant effect on small and medium scale entrepreneurs in the informal sector and that small and medium scale businesses are vulnerable and prone to risk. The study therefore, recommends among other things that government should provide safety net to small and medium scale business in form of zero interest loan and other forms of government assistance in order to cushion the effect of covid-19.