IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0257036.html
   My bibliography  Save this article

Research on the impact of COVID-19 on Chinese small and medium-sized enterprises: Evidence from Beijing

Author

Listed:
  • Zhengwei Ma
  • Yiran Liu
  • Yida Gao

Abstract

COVID-19 leads small and medium-sized enterprises (SMEs) to survive very hard. The development difficulties of SMEs lead to weak employment and GDP growth in various countries. In the process of COVID-19’s continuous spread, what is the major reason for the difficulties of SMEs? This paper hopes to answer this question by studying SMEs in Beijing. On this basis, this paper uses structural equation model (SEM) to study the relatively fast recovery of SMEs in Beijing, China, to explore the factors affecting SMEs in the pandemic. After detailed desk research and interviews with relevant entrepreneurs, this paper collects 234 valid questionnaires from SMEs in various industries in Beijing with the help of Federation of Industry and Commerce and Chamber of Commerce in Beijing. Then the data is analyzed with the SEM, which shows the relationship between cash flow from financing activities, markets, employees, costs, government policies and the impact of the pandemic. Finally, an impact model of the pandemic on SMEs is established. The result of the model indicates that the direct effect of the pandemic on the market is the most prominent, and government policies can significantly reduce the negative impact of the pandemic on SMEs indirectly. Based on this, this paper puts forward some policy suggestions, such as the targeted issuance of consumption vouchers and the reduction of administrative barriers. This will enable megacities in various countries to improve policy support for SMEs and promote the recovery and development of SMEs.

Suggested Citation

  • Zhengwei Ma & Yiran Liu & Yida Gao, 2021. "Research on the impact of COVID-19 on Chinese small and medium-sized enterprises: Evidence from Beijing," PLOS ONE, Public Library of Science, vol. 16(12), pages 1-22, December.
    • Handle: RePEc:plo:pone00:0257036
    DOI: 10.1371/journal.pone.0257036
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0257036
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0257036&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0257036?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Chrisovalantis Malesios & Prasanta K. Dey & Fuad Ben Abdelaziz, 2020. "Supply chain sustainability performance measurement of small and medium sized enterprises using structural equation modeling," Annals of Operations Research, Springer, vol. 294(1), pages 623-653, November.
    2. Hock-Doepgen, Marianne & Clauss, Thomas & Kraus, Sascha & Cheng, Cheng-Feng, 2021. "Knowledge management capabilities and organizational risk-taking for business model innovation in SMEs," Journal of Business Research, Elsevier, vol. 130(C), pages 683-697.
    3. Brown, Ross & Rocha, Augusto, 2020. "Entrepreneurial uncertainty during the Covid-19 crisis: Mapping the temporal dynamics of entrepreneurial finance," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    4. Latifi, Mohammad-Ali & Nikou, Shahrokh & Bouwman, Harry, 2021. "Business model innovation and firm performance: Exploring causal mechanisms in SMEs," Technovation, Elsevier, vol. 107(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. German Arana‐Landin & Waleska Sigüenza & Beñat Landeta‐Manzano & Iker Laskurain‐Iturbe, 2024. "Circular economy: On the road to ISO 59000 family of standards," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1977-2009, May.
    2. Staples, Aaron J. & Deming, Kristopher & Malone, Trey & Carpenter, Craig W. & Weiler, Stephan, 2024. "Pouring the Paycheck Protection Program into craft beer: PPP employment effects in service-intensive industries," Journal of Business Venturing Insights, Elsevier, vol. 21(C).
    3. Malewska, Kamila & Cyfert, Szymon & Chwiłkowska-Kubala, Anna & Mierzejewska, Katrzyna & Szumowski, Witold, 2024. "The missing link between digital transformation and business model innovation in energy SMEs: The role of digital organisational culture," Energy Policy, Elsevier, vol. 192(C).
    4. Meena Madhavan & Mohammed Ali Sharafuddin & Thanapong Chaichana, 2022. "Impact of Business Model Innovation on Sustainable Performance of Processed Marine Food Product SMEs in Thailand—A PLS-SEM Approach," Sustainability, MDPI, vol. 14(15), pages 1-33, August.
    5. Yiming Zhuang & Meltem Denizel & Frank Montabon, 2023. "Examining Firms’ Sustainability Frontier: Efficiency in Reaching the Triple Bottom Line," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    6. Dwivedi, Abhishek & Pawsey, Nicholas, 2023. "Examining the drivers of marketing innovation in SMEs," Journal of Business Research, Elsevier, vol. 155(PB).
    7. Ying, Ying & Wang, Shixiang & Liu, Yang, 2022. "Make bricks without straw: Eco-innovation for resource-constrained firms in emerging markets," Technovation, Elsevier, vol. 114(C).
    8. Martina Pilloni & József Kádár & Tareq Abu Hamed, 2022. "The Impact of COVID-19 on Energy Start-Up Companies: The Use of Global Financial Crisis (GFC) as a Lesson for Future Recovery," Energies, MDPI, vol. 15(10), pages 1-15, May.
    9. Majid Azadi & Zohreh Moghaddas & Reza Farzipoor Saen & Angappa Gunasekaran & Sachin Kumar Mangla & Alessio Ishizaka, 2023. "Using network data envelopment analysis to assess the sustainability and resilience of healthcare supply chains in response to the COVID-19 pandemic," Annals of Operations Research, Springer, vol. 328(1), pages 107-150, September.
    10. Demetris Vrontis & Jaroslav Belas & Alkis Thrassou & Gabriele Santoro & Michael Christofi, 2023. "Strategic agility, openness and performance: a mixed method comparative analysis of firms operating in developed and emerging markets," Review of Managerial Science, Springer, vol. 17(4), pages 1365-1398, May.
    11. Azeem, Muhammad & Ahmed, Munir & Haider, Sajid & Sajjad, Muhammad, 2021. "Expanding competitive advantage through organizational culture, knowledge sharing and organizational innovation," Technology in Society, Elsevier, vol. 66(C).
    12. Andrea Bellucci & Gianluca Gucciardi & Rossella Locatelli & Cristiana Schena, 2022. "Gender Gap in Business Angel financing," Mo.Fi.R. Working Papers 175, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    13. Kristina Stoiber & Kurt Matzler & Julia Hautz, 2023. "Ambidextrous structures paving the way for disruptive business models: a conceptual framework," Review of Managerial Science, Springer, vol. 17(4), pages 1439-1485, May.
    14. Chen, Kuan-Yang & Huan, Tzung-Cheng, 2022. "Explore how SME family businesses of travel service industry use market knowledge for product innovation," Journal of Business Research, Elsevier, vol. 151(C), pages 519-530.
    15. Ming-Ta Tu & Li-Shiue Gau & Ji-Hwan Park & Wen-Shin Huang & Pham Thuy Duong & Jong-Chae Kim, 2022. "Smart and Sustainable Management of Shoe Machinery Companies in Taiwan during the COVID-19 Pandemic—Case Studies of the Tung Sheng Company and Strong Basic Enterprise Limited Company," Sustainability, MDPI, vol. 14(16), pages 1-11, August.
    16. Thomas Gries & Wim Naudé, 2021. "Extreme Events, Entrepreneurial Start-Ups, and Innovation: Theoretical Conjectures," Economics of Disasters and Climate Change, Springer, vol. 5(3), pages 329-353, October.
    17. Erika Branca & Marika Intenza & Federica Doni, 2025. "Startup entrepreneurs’ personality traits and resilience: unveiling the interplay of prior experience," International Entrepreneurship and Management Journal, Springer, vol. 21(1), pages 1-28, December.
    18. Shuting Chen & Dengke Yu, 2024. "What Drives Business Model Innovation? Exploring the Role of Knowledge Management Capability in Chinese Top-Ranking Innovative Enterprises," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 6390-6424, June.
    19. Prasanta Kumar Dey & Chrisovaladis Malesios & Debashree De & Pawan Budhwar & Soumyadeb Chowdhury & Walid Cheffi, 2020. "Circular economy to enhance sustainability of small and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2145-2169, September.
    20. Varun Gupta & Luis Rubalcaba, 2021. "Competency-Industry Relatedness (C-IR) Framework for Sustained Business Growth in Startups during and Beyond Pandemic: Myths and Lessons from Publicly Funded Innovative Startups," Sustainability, MDPI, vol. 13(9), pages 1-23, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0257036. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.