 How Covid-19 impacts the financing in SMEs: Evidence from private firmsZhigang Yao and Yao Liu Economic Analysis and Policy, 2023, vol. 79, issue C, 1046-1056 Abstract: The world economy, and SMEs in particular, have been hit hard by the COVID-19 epidemic. SME finance issues are becoming a significant focus of policymakers and academics. This research uses private companies as a sample to analyze how COVID-19 affected SME finance. We examine critical factors such as business size, leverage, profitability, liquidity, and the influence of COVID-19. Our research shows that the pandemic has had a significant, detrimental impact on funding for small and medium-sized businesses. Small and medium-sized enterprises (SMEs) have expanded their borrowing amid falling profits and cash flow. More specifically, smaller SMEs have been hit harder than their bigger counterparts. Implications for policymakers and the owners of SMEs are substantial. Governments should help small and medium-sized enterprises by providing incentives like tax credits and loan guarantees. Owners of small and medium-sized enterprises (SMEs) should prioritize sound financial management and stability. This research sheds light on SMEs’ funding difficulties in the wake of COVID-19 and highlights the need to aid such businesses as rebuild. Keywords: Small and medium-sized enterprises; Financing; Private firms; Leverage; Profitability (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:79:y:2023:i:c:p:1046-1056 DOI: 10.1016/j.eap.2023.06.036 Access Statistics for this article Economic Analysis and Policy is currently edited by Clevo Wilson More articles in Economic Analysis and Policy from Elsevier |
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