IMPACT OF CORONAVIRUS CRISIS ON SMALL AND MEDIUM-SIZED ENTERPRISES IN THE SLOVAK REPUBLIC
Katarína Belanová
University of Economics in Bratislava, Dpt. of Finance, Bratislava, Slovakia
DOI: https://doi.org/10.31410/Balkans.JETSS.2021.4.1.9-22
Katarína Belanová
University of Economics in Bratislava, Dpt. of Finance, Bratislava, Slovakia
DOI: https://doi.org/10.31410/Balkans.JETSS.2021.4.1.9-22
Balkans Journal of Emerging Trends in Social Sciences, (2021) , Vol 4, No 1
ISSN: 2620-164X
ISSN: 2620-164X
Abstract: The crisis caused by the coronavirus COVID-19 pandemic has hit the corporate sector from an economic point of view particularly hard. The forced closure of operations led to a dramatic drop in sales and disruption of normal cash flow. In this regard, SMEs have been affected the most. Because of their economic and social importance for the economies, governments have taken many measures to help them. This article aims to evaluate the impacts of the coronavirus crisis on small and medium-sized enterprises in the Slovak Republic. For this purpose, we surveyed 139 SMEs up to the end of 2020. The results of the survey show that the existing help from the state has not compensated for the loss of sales and losses that entrepreneurs have had to deal with. The negative impact of the measures related to the second wave of the COVID-19 pandemic was felt by up to 96% of the addressed SMEs. The article also includes proposals from interviewed SMEs regarding business support measures. In this regard, it is necessary to focus especially on eliminating the technical and procedural shortcomings of the measures.
Keywords: Small and medium-sized enterprises, COVID 19 pandemic, Financial support.
JEL Classification G38 · G2 · L25
REFERENCES
Alves, J. C. et al. (2020). Crisis Management for Small Business during the COVID-19 Outbreak:
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Bank. Available at: https://doi.org/10.1596/33611[Accessed: 25.6.2021]
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na MSP. [online]. Available at: http://lepsiezakony.sk/wp-content/uploads/2020/06/
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European Commission (2019). Annual report on European SMEs 2018/2019 Research and Development
and Innovation by SMEs, Luxembourg. Available at: https://op.europa.eu/en/
publication-detail/-/publication/cadb8188-35b4-11ea-ba6e-01aa75ed71a1/language-en [Accessed:
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Intrum (2020). European Payment Report 2020. [online]. Available at: https://www.intrum.com/publications/
european-payment-report/european-payment-report-2020/ [Accessed: 15.4.2021].
Juergensen, J., Guimón, J. & Narula, R. (2020). European SMEs amidst the COVID-19 crisis:
assessing impact and policy responses. J. Ind. Bus. Econ. 47, 499–510. Available at: https://
doi.org/10.1007/s40812-020-00169-4[Accessed: 25.6.2021]
Lu, Y., Wu, J., Peng, J., & Lu, L. (2020). The perceived impact of the Covid-19 epidemic: evidence
from a sample of 4807 SMEs in Sichuan Province, China, Environmental Hazards. Available
at: https://doi.org/10.1080/17477891.2020.1763902 [Accessed: 25.6.2021]
Prohorovs, A. (2020). Getting Ready for Recession: How SMEs Prepared for Covid-19 Pandemic
and Economic Recession (May 7, 2020). Forbes (Latvian edition) No. 11, May 2020, pp. 46-
49. Available at: https://ssrn.com/abstract=3596611 or http://dx.doi.org/10.2139/ssrn.3596611
[Accessed: 25.6.2021]
SBA (2020a). Report on the state of Small and Medium Enterprises in the Slovak Republic in
2019. [online]. Available at: http://www.sbagency.sk/en/state-of-small-and-medium-entreprises
[Accessed: 5.4.2021].
SBA (2020b). Analýza malých a stredných podnikov pôsobiacich v odvetviach najviac zasiahnutých
karanténnymi opatreniami. [online]. Available at: http://monitoringmsp.sk/wp-content/
uploads/2020/04/Anal%C3%BDza-MSP-p%C3%B4sobiacich-v-odvetviach-najviac-
zasiahnut%C3%BDch-karant%C3%A9nnymi-opatreniami.pdf [Accessed: 17.3.2021].
SBA (2020c). Štátnu pomoc treba zjednodušiť a prestať strašiť sankciami. [online]. Available at:
http://www.sbagency.sk/sites/default/files/2020-05-26-ts-korona-prieskum-vysledky.pdf
[Accessed: 15.4.2021].
World bank (2020). Map of SME – Support Measures in Response to COVID – 19. online].
Available at: https://www.worldbank.org/en/data/interactive/2020/04/14/map-of-sme-support-
measures-in-response-to-covid-19 [Accessed: 15.4.2021].
Keywords: Small and medium-sized enterprises, COVID 19 pandemic, Financial support.
JEL Classification G38 · G2 · L25
REFERENCES
Alves, J. C. et al. (2020). Crisis Management for Small Business during the COVID-19 Outbreak:
Survival, Resilience and Renewal Strategies of Firms in Macau. Available at: https://doi.
org/10.21203/rs.3.rs-34541/v1[Accessed: 26.6.2021]
Didier, T. et al. (2020). Financing firms in hibernation during the COVID-19 Pandemic. World
Bank. Available at: https://doi.org/10.1596/33611[Accessed: 25.6.2021]
Centre for better regulation (2020). Testovanie vplyvov korona krízy a prijatých vládnych opatrení
na MSP. [online]. Available at: http://lepsiezakony.sk/wp-content/uploads/2020/06/
Test-MSP_vplyvy-korona-krizy-na-podnikanie-MSP_MAR.pdf [Accessed: 15.4.2021].
European Commission (2019). Annual report on European SMEs 2018/2019 Research and Development
and Innovation by SMEs, Luxembourg. Available at: https://op.europa.eu/en/
publication-detail/-/publication/cadb8188-35b4-11ea-ba6e-01aa75ed71a1/language-en [Accessed:
25.6.2021]
EU Independent Fiscal Institutions. European Fiscal Monitor Available at: https://www.euifis.eu/
download/european_fiscal_monitor_special_updatevol2_01.pdf [Accessed: 25.6.2021
Intrum (2020). European Payment Report 2020. [online]. Available at: https://www.intrum.com/publications/
european-payment-report/european-payment-report-2020/ [Accessed: 15.4.2021].
Juergensen, J., Guimón, J. & Narula, R. (2020). European SMEs amidst the COVID-19 crisis:
assessing impact and policy responses. J. Ind. Bus. Econ. 47, 499–510. Available at: https://
doi.org/10.1007/s40812-020-00169-4[Accessed: 25.6.2021]
Lu, Y., Wu, J., Peng, J., & Lu, L. (2020). The perceived impact of the Covid-19 epidemic: evidence
from a sample of 4807 SMEs in Sichuan Province, China, Environmental Hazards. Available
at: https://doi.org/10.1080/17477891.2020.1763902 [Accessed: 25.6.2021]
Prohorovs, A. (2020). Getting Ready for Recession: How SMEs Prepared for Covid-19 Pandemic
and Economic Recession (May 7, 2020). Forbes (Latvian edition) No. 11, May 2020, pp. 46-
49. Available at: https://ssrn.com/abstract=3596611 or http://dx.doi.org/10.2139/ssrn.3596611
[Accessed: 25.6.2021]
SBA (2020a). Report on the state of Small and Medium Enterprises in the Slovak Republic in
2019. [online]. Available at: http://www.sbagency.sk/en/state-of-small-and-medium-entreprises
[Accessed: 5.4.2021].
SBA (2020b). Analýza malých a stredných podnikov pôsobiacich v odvetviach najviac zasiahnutých
karanténnymi opatreniami. [online]. Available at: http://monitoringmsp.sk/wp-content/
uploads/2020/04/Anal%C3%BDza-MSP-p%C3%B4sobiacich-v-odvetviach-najviac-
zasiahnut%C3%BDch-karant%C3%A9nnymi-opatreniami.pdf [Accessed: 17.3.2021].
SBA (2020c). Štátnu pomoc treba zjednodušiť a prestať strašiť sankciami. [online]. Available at:
http://www.sbagency.sk/sites/default/files/2020-05-26-ts-korona-prieskum-vysledky.pdf
[Accessed: 15.4.2021].
World bank (2020). Map of SME – Support Measures in Response to COVID – 19. online].
Available at: https://www.worldbank.org/en/data/interactive/2020/04/14/map-of-sme-support-
measures-in-response-to-covid-19 [Accessed: 15.4.2021].
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