Small to medium-sized enterprises are businesses that have below a certain amount of sales, assets, or staff. The concept of small and medium-sized enterprises ( SMEs) is specified in each region. There should be some scale requirements, and even periodic attention must be given to the sector in which the company works. Small to mid-size enterprises play a large part in the economy since they remain small to medium-sized enterprises. They are substantially greater than big corporations, employ a large number of people, and usually have an entrepreneurial orientation, leading to creativity.
Business activity, job creation, and economic growth in all countries is greatly affected by small- and medium-sized enterprises ( SMEs). They constitute between 50% to 60% of gross domestic product ( GDP) and 60% of employment in developing economies. In certain developed economies the importance of small- and medium-sized enterprises may be estimated, whereas elsewhere they are less significant. Governments facing a struggle to improve job growth, diversification, and other economic priorities often use SME policies and programs. However, a rather heterogeneous landscape of enterprises is protected by the SME group. Not all small and medium-sized enterprises with or are willing to raise and they face diverse markets, processes, and failures. They can vary based on their height, age, and willingness to rise in political and economic impacts. After founding these businesses, most of them don't expand dramatically and their first few years struggle to a large degree. Even if most SMEs do not push economic growth, their performance will benefit positively because SMEs deliver a large amount of economic activity and jobs.
One of the most important topics for researchers is still SMEs. There are a variety of main features that differentiate it from larger corporations. Researchers rendered features of small and medium-sized enterprises. Attributes sometimes referred to as characteristic of small enterprises are as follows:
In general, the finances of small and medium-sized enterprises are minimal. This is particularly true for fresh beginnings when the organization is missing or missing track records to draw customers and banking prospects. Therefore the owner's ability to produce capital is strongly contingent (White and Welsh, 1981).
Management is typically casual for small to medium-sized businesses. The owner has almost everything to do and workers are usually supposed to have a general role because the duties are not specifically separated (Kotey and Slade, 1999; Slade, 2005).
Due to its scale and informal structure, the organization has more ability to respond to environmental changes. In the business world, it is also vulnerable to development. Any improvement in public policy or infrastructure may be of major significance to businesses, for example, so imminent improvements need additional funding or money. The businesses will be forced to compete to retain themselves in the market (Aragon-Sanchez and Sanchez-Marin, 2005).
The businesses are run and operated by the director. The business is run by founders and both as an employee and as an employer. The investor decides the growth of businesses. The owner normally takes choices (Feltham and Barnett, 2005).
There is no potential for the complexity generated by Covid-19 for small and medium-sized enterprises. SMEs also have to compete because of the extent, scale of their companies, and the scarce capital in challenging markets even in normal circumstances. We recognize that, even if small and medium-sized enterprises have less money, they have been able to conquer obstacles to become major corporations. There are many examples of businesses like Facebook, Amazon, etc. that began in a garage or at home with little assets. SMEs have the same appetite to overcome Covid-19 obstacles.
SMEs were faced with the toughest obstacle of ensuring market stability. The lock-down has slowed down the market speed in countries too. Small businesses can't operate their stores. Due to the limited demand and the limited time allowed to open the firm, the continuity of the business is difficult. Flexible workplace structures with an emphasis on disaster preparedness, cost-effective preventive measures are expected (International Trade Centre, 2020).
It also leads to lower morals among the workers during tough periods, including the recent pandemic. This is because the manager and workers have no cash liquid cash left. The staff could be faced with cuts in wages. They are not granted licenses that they have previously enjoyed. The liquidity crunch is further developed. During the tumultuous days, companies face great challenges. To make difficult decisions in a crisis, psychological features like self-confidence, bravery, etc. have to be taken. Companies must analyze and adapt to the changing needs of mature workers. This will reinforce and reinforce the organization. The leaders should be open and sympathetic to the stakeholders. They should still be able to create a positive optimism for the future (Sandler et al., 2009).
Coronavirus contributed to a market production shortage. This influenced medical as well as non-medical products. Even the essential food supply has been compromised by the health equipment including personal protective suits, sanitizers, masks, tissue paper. This is the moment when small and medium-sized enterprises will start to import and provide short products to the poor in the regions. Because of dependence only on a few countries for products, multinational supply chain businesses struggle. In Wuhan, which is the epicenter of the epidemic, there are more than 200 fortune-big businesses. These businesses will potentially face major disruptions. You should train the workers, use assessment protocols to carry out routine health checks, plan for temporary or partial worker absenteeism, handle non-essential travel, have versatile working systems. The effect of the recession obliged enterprises to search at new supply chain outlets, inventories, distribution, and redefine cash flow management (Kilpatrick et al., 2019).
Financially restrained businesses have been further impacted by the crisis (Campello et al. 2010). In crisis management, liquidity plays a major role. As sometimes, businesses have to adjust the market atmosphere during the crucial scenario like the one triggered by Corona. This will shift market appetite, delay the supply chain, or even endanger people's lives. Coronavirus has endangered people's lives as a highly contagious illness. Companies are facing a struggle to proceed. Different financial outlets like cash reserves or bank credit lines may be used as a workaround (Almeida and Campello, 2007; Sufi 2009). Yet small businesses can have challenges getting credit in the pandemic on time.