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Small Firms and the Pandemic: Evidence From Latin America

Author

Listed:
  • Christopher Neilson

    (Princeton University)

  • Maria Guerrero

    (UCLA)

  • John Humphries

    (Yale University)

  • Naomi Shimberg

    (Yale University)

  • Gabriel Ulyssea

    (UCL)

Abstract

This paper studies the effects of the COVID-19 pandemic on small businesses between March and November 2020 using new survey data on 35,000 small businesses in eight Latin American countries. We document that the pandemic had large negative impacts on employment and beliefs regarding the future, which in turn predict meaningful economic outcomes in the medium-term. Despite the unprecedented amount of aid, policies had limited impact for small and informal firms. These firms were less aware of programs, applied less, and received less assistance. This may have lasting consequences, as businesses that received aid reported better outcomes and expectations about the future.

Suggested Citation

  • Christopher Neilson & Maria Guerrero & John Humphries & Naomi Shimberg & Gabriel Ulyssea, 2021. "Small Firms and the Pandemic: Evidence From Latin America," Working Papers 651, Princeton University, Department of Economics, Industrial Relations Section..
    • Handle: RePEc:pri:indrel:651
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    References listed on IDEAS

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    2. Cerda, Maikol & Gertler, Paul & Higgins, Sean & Montoya, Ana María & Parrado, Eric & Undurraga, Raimundo, 2023. "The Causal Impact of Covid-19 Government-backed Loans on MSMEs Liquidity and Earnings," IDB Publications (Working Papers) 12710, Inter-American Development Bank.
    3. Barbakadze, I., 2023. "With a Little Help from My Friend: Political Connections and Allocation of COVID-19 Aid," Cambridge Working Papers in Economics 2355, Faculty of Economics, University of Cambridge.
    4. Le, Minh-Phuong & Chauvet, Lisa & Marouani, Mohamed Ali, 2024. "The Great Lockdown and the Small Business: Impact, Channels and Adaptation to the Covid Pandemic," World Development, Elsevier, vol. 182(C).
    5. Constantinescu,Ileana Cristina & Fernandes,Ana Margarida & Grover,Arti Goswami & Poupakis,Stavros & Reyes Ortega,Santiago, 2022. "Globally Engaged Firms in the COVID-19 Crisis," Policy Research Working Paper Series 9991, The World Bank.
    6. Shynar Issabayeva & Bayan Smagambet & Igor Barkhatov & Igor Okhrimenko, 2024. "A Sociological Portrait of a Family Business in Post-Soviet Economies: Challenges from the Market, Government, and Society, as well as Interaction with These Institutions in the Context of Digital Gov," Public Organization Review, Springer, vol. 24(1), pages 161-181, March.
    7. Jacob A. Jordaan, 2023. "Firm‐level characteristics and the impact of COVID‐19: Examining the effects of foreign ownership and international trade," The World Economy, Wiley Blackwell, vol. 46(7), pages 1967-1998, July.
    8. Hoelscher, Kristian & Garcia, Catalina G., 2024. "SMEs, violence and crisis: Stylized facts from a survey in Latin America," World Development, Elsevier, vol. 184(C).
    9. Enlinson Mattos & Leonardo Stelzer-Rossi, 2024. "The pandemic shock and the heterogenous responses for durable versus non-durable industries," Economics Bulletin, AccessEcon, vol. 44(4), pages 1414-1433.
    10. Liu, Qingfu & Shi, Chen & Tse, Yiuman & Wang, Chuanjie, 2023. "The value of communication during pandemics," Pacific-Basin Finance Journal, Elsevier, vol. 82(C).
    11. Grijalva, Diego, 2023. "Women-led firms’ performance during the Covid-19 pandemic. Evidence from an emerging economy," MPRA Paper 117225, University Library of Munich, Germany.
    12. Zengdong Cao & Qin Tu & Nichola Latoya Williams, 2024. "E‐commerce, Pandemic Shock, and the Survival of Small and Medium Enterprises," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 32(5), pages 113-139, September.
    13. Christina Nicolas & Nathalie Brender & David Maradan, 2023. "How Did Swiss Small and Medium Enterprises Weather the COVID-19 Pandemic? Evidence from Survey Data," JRFM, MDPI, vol. 16(2), pages 1-16, February.

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    More about this item

    Keywords

    COVID-19; small business; Latin America;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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