EFFECT OF COVID-19 ON PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN RWANDA.

Abstract

The present study is on the effect of covid-19 on the performance of small and medium enterprises (2019-2023). The general objective of this study was to investigate on the Effect of Covid-19 on performance of Small and Medium Enterprises in Rwanda special in Gasabo district. The three specific objective was to establish the effect of covid-19 on SMEs sales/activities on its financial performance, to assess the financial performance of SMES before and post the COVID-19 pandemic and the third one was to establish the relationship among covid-19 and the performance of small and medium enterprises. Descriptive research design was adopted for this study using quantitative methods of data collection. The study used a sample of 35 SMEs selected using purposive and universal sampling techniques. The study used primary and secondary data was collected by questionnaires. In order to achieve objectives, data were collected from selected respondents to generalize the results of the study. After analysis the study found that the pandemic presented significant hurdles for SMEs in Rwanda, including disruptions in supply chains, reduced consumer spending, and restrictions on physical operations. Many businesses faced financial strain and struggled to maintain their pre-pandemic levels of revenue and employment. The study conclude that the COVID-19 pandemic had a profound and multifaceted impact on the performance of Small and Medium-sized Enterprises (SMEs) in Rwanda. The main recommendation was made to strengthen digitalization, access to finance, skill development, collaborative networks, government support, risk management, market diversification, health and safety measures, data analytics, customer engagement, these researcher recommendations aim to support SMEs in Rwanda in navigating the challenges posed by the COVID-19 pandemic and building resilience for the future.