Analysis of the effects of COVID 19 on the operations and sustainability of SMEs in South Western region, Uganda

Abstract

SMEs are considered huge boosters to the economy of Uganda. They serve as the engine and driving force for growth, development, innovation, economic prosperity and wealth creation of Uganda. The study aimed at establishing the upshot of COVID 19 on the operations and sustainability of SMEs in Uganda with a view to creating a lucid model for successful SMEs operations and improved performance. The study examined factors for efficient operations and sustainability for SMEs in Uganda. The study embraced a positivist quantitative approach with correlational design and cross sectional, survey design, underpinned on the interpretivism philosophy. The study used a sample of 205 SMEs working in Kabale, Kisoro, Rukiga, Rukungiri and Ntungamo. The findings revealed that COVID19 pandemic accounted for a significant variance in the operations and sustainability of SMEs in the selected boarder districts in Uganda. The study confirmed the hypothesis that the effects of COVID19 pandemic have positively affected performance, operations and sustainability of SMEs. The pecking order theory was largely supported by the study and resource based view lays the ground in explaining, sustainability, performance and operations of SMEs in Uganda. The study recommends that the respective government of Uganda authorities and partners offer appropriate liquidity intercessions to support SMEs in handling instant liquidity encounters, to avoid closures and bankruptcies.