Sustainability of small and medium enterprises during COVID-19 crisis and its impacts

Abstract

The COVID-19 pandemic has exposed small and medium enterprises (SMEs) to numerous challenges. Public health measures such as restrictions of physical movement and business closure have threatened the sustainability of small and medium enterprises. SMEs play a critical role in economic growth and development and governments must help SMEs to overcome the challenges of the COVID-19 pandemic. This study investigates some of the useful interventions that SMEs in the ASEAN region can adopt to recover from the devastating impacts of the pandemic in line with the ASEAN Comprehensive Recovery Framework (ACRF). The ASEAN Comprehensive Recovery Framework (ACRF) focuses on five broad themes including enhancing the capability of the health systems, ensuring the security of the people, digital transformation, promoting economic integration, and shifting to a more sustainable and resilient future to promote economic recovery after the pandemic. However, only a few studies have examined the impact of the ASEAN Comprehensive Recovery Framework (ACRF) on the recovery of small and medium enterprises in the ASEAN region. This study conducted a systematic review to determine the elements of the ASEAN Comprehensive Recovery Framework (ACRF) that small and medium enterprises can implement to overcome the pandemic. A literature search was used to find research studies that have examined the impact of the COVID-19 pandemic on SMEs, the initiatives that SMEs have taken to overcome the challenges of the pandemic, and the role of different stakeholders in the recovery of SMEs after the COVID-19 pandemic. The study finds that information and technology innovations, government support, and sustainable practices are important if SMEs are to overcome the current and future pandemics. This is one of the studies that shows a direct link between digital transformation, sustainability, and government support and the survival of small and medium enterprises during the COVID-19 pandemic.