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COVID-19 Impact on Micro, Small, and Medium-Sized Enterprises under the Lockdown: Evidence from a Rapid Survey in the Philippines

Author

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  • Shinozaki, Shigehiro

    (Asian Development Bank Institute)

  • Rao, Lakshman N.

    (Asian Development Bank Institute)

Abstract

The novel coronavirus disease, COVID-19, has brought significant change to people’s lives and business activities nationally, regionally, and globally. The Philippines took swift action—including enhanced community quarantine (ECQ)—to contain the pandemic and launched an emergency subsidy program with massive public spending to support disrupted households and businesses. The strict lockdown ran from mid-March to the end of May 2020 in the national capital region and high-risk provinces, causing huge economic losses. Six months after the March lockdown, the Philippine economy has moved to the recovery stage, but micro, small, and medium-sized enterprises (MSMEs) are continuing to confront a sharp drop in demand and revenue. We examine the initial impact on MSMEs of the ECQ and lockdown measures using evidence obtained from a rapid nationwide survey conducted from the end of March to mid-April 2020 and derive policy implications.

Suggested Citation

  • Shinozaki, Shigehiro & Rao, Lakshman N., 2021. "COVID-19 Impact on Micro, Small, and Medium-Sized Enterprises under the Lockdown: Evidence from a Rapid Survey in the Philippines," ADBI Working Papers 1216, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:1216
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    2. Maria Carmen L. Vidal & Filomena M. Mendoza, 2023. "A Path Analysis of the Antecedents, Business Sustainability Practices and Outcomes of Private Schools in the Philippines," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 13(1), pages 151-151, July.
    3. Zhu, Jun & Ho, Kung-Cheng & Luo, Sijia & Peng, Langchuan, 2023. "Pandemic and tax avoidance: Cross-country evidence," Economic Modelling, Elsevier, vol. 124(C).
    4. Tomo Kawane & Bismark Adu-Gyamfi & Yuqiu Cao & Yinjia Zhang & Nanami Yamazawa & Zuquan He & Rajib Shaw, 2024. "Digitization as an Adaptation and Resilience Measure for MSMEs amid the COVID-19 Pandemic in Japan: Lessons from the Food Service Industry for Collaborative Future Engagements," Sustainability, MDPI, vol. 16(4), pages 1-21, February.
    5. Magdalena Olczyk & Marta Ewa Kuc-Czarnecka, 2021. "Determinants of COVID-19 Impact on the Private Sector: A Multi-Country Analysis Based on Survey Data," Energies, MDPI, vol. 14(14), pages 1-17, July.
    6. Uma Shankar Yadav & Ravindra Tripathi & Mano Ashish Tripathi, 2022. "Adverse impact of lockdown during COVID-19 pandemic on micro-small and medium enterprises (Indian handicraft sector): A study on highlighted exit strategies and important determinants," Future Business Journal, Springer, vol. 8(1), pages 1-10, December.
    7. John Rey G. Lobaton, 2023. "Micro, small, and medium-sized enterprises (MSMEs) and their employees have been particularly hard hit by the recession because of the COVID-19 pandemic. This study assesses the level of vulnerability," Technium Business and Management, Technium Science, vol. 3(1), pages 104-125.
    8. Antonio Jr Estrada Etrata & Jackie Lou Raborar, 2022. "The Filipino generation Z’s entrepreneurial intention: What drives their business mindedness?," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 57-66, March.
    9. Anu Sharma & Ashima Tiwari & Neha Singh, 2024. "Social Platform: Key to Market Innovation for Indian Artisans—A Case Study of Chanderi Cluster," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 10(1), pages 84-96, January.
    10. Shigehiro Shinozaki, 2023. "Do Digitalization and Digital Finance Help Small Firms Survive Global Economic Uncertainty in Central and West Asia? Evidence from Rapid Surveys," Sustainability, MDPI, vol. 15(13), pages 1-29, July.
    11. Son, Hyun, 2022. "The Distributional Impacts of Fiscal Policy: The Case of the Philippines," ADB Economics Working Paper Series 662, Asian Development Bank.
    12. Igarashi, Takiko & Takeda, Asami & Truong, Hoa T. & Sonobe, Tetsushi, 2022. "Evolving Impacts of the COVID-19 Pandemic on Micro, Small, and Medium-Sized Enterprises in Asia," ADBI Working Papers 1286, Asian Development Bank Institute.
    13. Chen, Yutong & Debnath, Sisir & Sekhri, Sheetal & Sekhri, Vishal, 2023. "The impact of Covid-19 containment lockdowns on MSMEs in India and resilience of exporting firms," Journal of Economic Behavior & Organization, Elsevier, vol. 210(C), pages 320-341.
    14. Alfred Presbitero & John Jamir Benzon R. Aruta, 2024. "Reducing employee burnout in the context of a global crisis and remote work: focusing on quality of leader–member exchange, trust in leader and organizational identification," Asian Business & Management, Palgrave Macmillan, vol. 23(1), pages 32-54, February.
    15. Shinozaki, Shigehiro, 2022. "Informal Micro, Small, and Medium-Sized Enterprises and Digitalization: Evidence from Surveys in Indonesia," ADBI Working Papers 1310, Asian Development Bank Institute.

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    More about this item

    Keywords

    COVID-19; economic crisis; economic impact; MSMEs; SME development; access to finance; SME policy; Philippines;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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