Effects of government COVID 19 interventions on the financial performance of Small and Medium Enterprises within Nairobi County
Date
2022
Authors
Oindi, F.
Journal Title
Journal ISSN
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Publisher
Strathmore University
Abstract
SMEs form the backbone of economies. Developing countries rely on SMEs to a greater extent than their more developed counterparts hence emphasizing the need for support of such businesses in the event of economic crises. The Covid-19 pandemic has proven one such crisis event that has threatened the very existence of small businesses in the developing world. The purpose of this study was to focus on government interventions put in place to aid the performance of SMEs during the tumultuous government restriction period. The general objective was to assess the effects of government interventions on the financial performance of SMEs within Nairobi County during the Covid-19 government restriction period. The specific objectives were as follows: To determine the effect of the expenditure package on the financial performance of SMEs in Nairobi County. To determine the effect of tax reductions on the financial performance of SMEs in Nairobi County. To determine the effect of loan restructuring provisions on the financial performance of SMEs in Nairobi County. Data was collected through structured questionnaires issued through a random stratified process targeting SMEs in Nairobi County. A total of 262 businesses are targeted, all of which operate in the service and manufacturing industry. Data was analysed through ordinal logistic regression. The findings revealed that of the three factors, tax incentives were the only valid factor determining the performance of SMEs in Nairobi County (95% confidence level). However, this inference is to be made in light of the observation that only service and manufacturing entities were included in the study. These findings thus point to the need for additional investigations into the nature of SME performance and the implications of the lack of significance of direct expenditure and loan restructuring vis-à-vis Keynes’ laws.
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Full - text thesis
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Citation
Oindi, F. (2022). Effects of government COVID 19 interventions on the financial performance of Small and Medium Enterprises within Nairobi County [Strathmore University]. http://hdl.handle.net/11071/15791