COVID-19 Pandemic, crisis management response, economic downturn, MSMEs, survival strategy


COVID-19 Pandemic posed a great threat and challenges to the business world, especially the Micro, Small and Medium Enterprises (MSMEs). Many of these enterprises suffered a great downturn in business activities and reduction in profit volume. Many of them were forced to close down while others survived on the margin. The government and other stakeholders in the MSMEs have provided solutions to their problems but most of them have not really yielded the desired result. This paper investigates the challenges that MSMEs in Lagos State encountered as well as the strategic options for their survival during the Covid-19 Pandemic era. A survey research design was adopted and primary data were collected with the help of questionnaire. The population of study was 3,224,324 registered MSMEs in Lagos State, while the sample size of 400 was determined with Yamane (1967) formulae. A simple random sampling technique has been employed to administer 400 copies of questionnaire out of which 297 were properly filled and returned. The findings from the regression analysis and the descriptive statistics revealed that there is no significant effect of MSMEs Covid-19 challenges (such as: decline in productivity, business closure, supply chain breakdown, low customer demand, reduction in profit volume, self-isolation, reduced opportunities to meet new clients) on business survival. Also, it was revealed that most of the respondents adopted cutting expenses as a strategic option for the survival of their businesses. However, the study concluded that Covid-19 Pandemic is a major threat to MSMEs survival and growth. It was recommended that MSMEs should embark on cutting expenses in order to survive Covid-19 and further, they should embrace crisis management response, finance and liquidity, operation and supply chain, determine and activate the business continuity plan, monitor the implementation to enhance their survival and readjust their response approach towards environmental changes.


Abulescu, C. (2020). Coronavirus and financial volatility: 40 days of fasting and fear. Cornell University. arXiv preprint arXiv:2003.04005.

Afi. (2017). Alliance for financial inclusion. Retrieved from:

African Heroes. (2020). Micro, Small, and Medium Enterprises (MSMEs) in Nigeria – An Overview. Retrieved from:

Ajibo, H. (2020). Effect of Covid-19 on Nigerian Socio-economic Well-being, Health Sector Pandemic Preparedness and the role of Nigerian Social Workers in the war against Covid-19. Social Work in Public Health, 35(7), 511-522. Doi:10.1080/19371918.2020.1806168

Akingbade, W.A. (2020). Service Differentiation Strategy and Organizational Performance of Nigeria Small and Medium Enterprises in Lagos State. International Journal of Economic Behaviour, 10(1), 21-33.

Aladejebi, O. (2020). Managing Small Businesses in Nigeria during Covid-19 crisis: Impact and survival strategies. IOSR Journal of Business and Management, 22 (8), 24-34.

Asia-Pacific MSME Trade Coalition. (2020). COVID-19 SME Impact Survey. COVID-19 Impact Survey. Asia Business Trade Association.

Audretsch, D.B. (2015). Everything in its place: Entrepreneurship and the strategic Management of Cities, Regions, and States. Oxford, UK: Oxford University Press

Autio, E., Kenney, M., Mustar, P., Siegel, D., & Wright, M. (2014). Entrepreneurial innovation: The importance of context. Research Policy, 43(7), 1097-1108. Doi:10.1016/j.respol.2014.01.015

Baumol, W. (2015). Joseph Schumpeter: The long run, and the short. Journal of Evolutionary Economics. Springer 25(1), 37-43. Doi: 10.1007/S00191-013-0327-3

Bogliacino, F., & Pianta, M. (2013). Profits, research, development, and innovation: A model and a test. Industrial and Corporate change, 22(3), 649-678.

Boseley, S., Devlin, H., & Belam, M. (2020). Coronavirus symptoms: What are they and should I see a doctor? Retrieved from: https//

Bourletidis, K., & Triantafyllopoulos, Y. (2014). SMEs Survival in time of crisis: Strategies, tactics and commercial success stories. Procedia-Social and Behavioural Sciences, 148, 639-644.

CDC. (2020b). Symptoms. Retrieved from

CDC. (2020c). Coronavirus disease 2019 (COVID-19). Retrieved from

Dorin, C., & Alexandra, G.S. (2014). Dynamics of the entrepreneurship concept: Literature review. The annals of the University of Oradea, 23(1), 443-451.

Fitriasari, F. (2020). How do small and medium enterprises survive the COVID-19 outbreak? Jurnal Inovasi Ekonomi, 5(2), 53-62.

IMF. International Monetary Fund. (2020). Retrieved from:

International trade centre. (2020). Retrieved from:

Johnson, N.P., & Mueller, J. (2002). Updating the accounts: global morality of the 1918-1920 Spanish influenza Pandemic. Bull Hist Med. 76, 105-115.

Kain, T., & Fowler, R. (2019). Preparing intensive care for the next Pandemic influenza. Critical Care, 23, 337.

Kale, Y. (2019). Public Presentation of the 2017 NBS-SMEDAN Small and Medium Enterprises Development. Agency of Nigeria (SMEDAN). National Survey of Micro, Small and Medium Enterprise (MSMEs), Report held in Lagos.

Konstantakis, K., Michaelides, P.G., & Papageorgiou, T. (2014). Sector size, technical change and stability in USA (1957-2006): A Schumpeterian approach. International Journal of Social Economics, 41(10).

Li, Q., Guan, X., Wu, P., Wang, X., Zhou, L., & Tong, Y. (2020). Early transmission dynamics in Wuhan, China, of novel coronavirus-infected pneumonia. The new England Journal of Medicine, 382(13), 1199-1207. Doi:10.1056/NEJMoa2001316

Liu, Y., Kuo, R., & Shih, S. (2020). COVID-19: The first documented coronavirus Pandemic in history. Biomed Journal, 43(4), 328-333. Doi: 10.1016/

National agency for food and drug administration and control. (2021). NAFDAC approves COVID-19 vaccine. Retrieved from:

NCDC. (2021). Nigeria Centre for Disease Control. Retrieved from:

Ogundele, O.J.K. (2012). Introduction to Entrepreneurship Development, Corporate Governance and Small Business Management. (2nd ed.) Lagos, Nigeria: Molofin Nominess.

Pak, A., Adegboye, O.A., Adekunle, A.I., Rahman, K.M., McBryde, E.S., & Eisen, D.P. (2020). Economic Consequences of the COVID-19 outbreak: The need for Epidemic Preparedness. Frontiers in Public Health, 8(241), Doi:10.3389/fpubh.2020.00241

WC. (2020). COVID-19: Impacts on Business. Retrieved from: www.

Schumpeter, J.A. (2012). Schumpeter’s theory of Economic Development: 100 years of development. Journal of Evolutionary Economics, 22(5), 917-933.

Simonsen, L., Clarke, M.J., Schonberger, L.B., Arden, N.H., Cox, N.J., & Fukuda, K. (1998). Pandemic versus epidemic influenza mortality: a pattern of changing age distribution. Journal of Infect Disease, 178, 53-60 .

SMEDAN & NBS. (2013). Small and Medium Enterprises Development Agency of Nigeria and National Bureau of Statistics Collaborative Survey: Selected findings. Retrieved from:

Udoh, C.R. (2020). Africa, Enterprises, Micro, Nigeria, Small & Medium, Small Businesses Retrived from:

US Bureau of labour statistics. (2016). Retrieved from:

Vandenberg, P. & Helble, M. (2020). Three Ways to Support Businesses and Their Workers during a Pandemic. Asian Development Blog.

Vandenberg, P. (2020). Bouncing Back Support to SMEs for COVID-19 Recovery. Presented at the Policy Actions for COVID-19 Economic Recovery Dialogues of the Asian Development Bank.

Viboud, C., Simonsen, L., Fuentes, R., Flores, J., Miller, M.A., & Chowell, G. (2016). Global moralityimpact of the 1957-1959 influenza Pandemic. Journal of Infectious Disease, 213, 738-745

WHO (2020b). World Health Organization. Retrieved from:

WHO. (2021). World Health Organization. Retrieved from:

World Bank. (2014). Building Competitive Green Industries: The Climate and Clean Technology Opportunity for Developing Countries. Retrieved from:

Yamane, T. (1967). Statistics: An Introductory Analysis, 2nd Edition. New York, USA: Harper and Row.

Yamey, G., Schaferhoff, M., Aars, O.K.. Bloom, B., Carroll, D., Chawla, M. (2017). Financing of International collective action for epidemic and Pandemic preparedness. Lancet Global Health, 5, 742-4, Doi:10.1016/52214-109X(17)

Zhu, N., Zhang, D., Wang, W., Li, X., Yang, B., & Song, J.A. (2019). A novel coronavirus from patients with pneumonia in China. N Engl Med, 382,727-733.






Review Scientific Paper

How to Cite


Similar Articles

1-10 of 312

You may also start an advanced similarity search for this article.

Most read articles by the same author(s)

1 2 3 4 5 6 7 8 9 10 > >>