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

39 Pages Posted: 18 Mar 2021

See all articles by Shigehiro Shinozaki

Shigehiro Shinozaki

affiliation not provided to SSRN

Lakshman Nagraj Rao

Asian Development Bank

Date Written: March 18, 2021

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.

Keywords: COVID-19, economic crisis, economic impact, MSMEs, SME development, access to finance, SME policy, Philippines

JEL Classification: D22, G20, L20, L50

Suggested Citation

Shinozaki, Shigehiro and Rao, Lakshman Nagraj, COVID-19 Impact on Micro, Small, and Medium-Sized Enterprises under the Lockdown: Evidence from a Rapid Survey in the Philippines (March 18, 2021). ADBI Working Paper 1216, Available at SSRN: https://ssrn.com/abstract=3807080 or http://dx.doi.org/10.2139/ssrn.3807080

Shigehiro Shinozaki (Contact Author)

affiliation not provided to SSRN

Lakshman Nagraj Rao

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

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