THE IMPACT OF COVID19 PANDEMIC ON THE SUSTAINABILITY OF SMALL AND MEDIUM ENTREPRISES
THE IMPACT OF COVID19 PANDEMIC ON THE SUSTAINABILITY OF SMALL AND MEDIUM ENTREPRISES

Author(s): Otilia Oprea
Subject(s): Economy
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: pandemic; sustainability; SMEs; crisis; economy;
Summary/Abstract: The coronavirus crisis has affected Member States in a sudden and dramatic way, with a potentially major impact on their societies and economies. This has led to a sharp decline in economic activity, which may be exacerbated by liquidity constraints as companies struggle to pay their suppliers and employees. The purpose of this paper is to investigate the impact of Covid19 pandemic on the sustainability of the SMEs. . We used fixed effects methodology for times series data for the EU 28 countries during 2018-2020. We find that the main factors through which the pandemic contribute significantly and positively to SMEs are per capita income financial transactions and value added, and the variables which has a significant but negative influence are the number of Covid19 cases and labor productivity.

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