Economic ramifications of a global pandemic for small and medium businesses /

Abstract: This paper will discuss the economic ramifications of the pandemic for small and medium-sized businesses. I decided to write this particular paper because personally I have faced during my internship period the lock-downs and state intervention taken in regards of the SME in the country of Georgia. It became interesting to me what effects this crisis had on different countries and specifically on SMEs in the country of Georgia. The aim of the paper is to understand concept of the small and medium enterprises, reviewing scientific literature and conducting research for the global pandemic in favor of small and medium business. First and foremost different authors’ writings were reviewed to understand SME success strategy, Objective guidelines for the formation of SME, criteria and strategic functions for determining them and its’ production - driving economic growth power. To connect the dots and find the ramifications of the pandemic for SMEs different authors’ articles was used. The articles mainly consist of current legal status and further forecasting and predictions. I decided to do my empirical research on Georgian companies. Empirical research has shown that almost all of the research participant companies are shocked and they are taking extreme measures to survive and stay in the market. Starting with the expenses incurred in the current activity ending with a reduction in staff. Research clearly showed that not all companies were ready for a global crisis and their strategy to deal with external factors turned out to be weak. There were also companies that had interesting ideas that could be used for “New Road” Ltd. The spread of coronavirus earlier this year was a stark reminder of how necessary it is to be prepared for a sudden crisis and how interconnected the whole world is today. In the first stage of the crisis, of course, the safety of employees, consumers and the public is a priority. All organizations must also be prepared to manage operational or financial risks associated with the impact of the pandemic on supply chains and markets. It is vital to maintain business resilience and continuity, as well as to overcome potential crises. Practical steps to deal with the situation will be: • Study possible future scenarios along with the current situation; • Analyze the wider consequences of the epidemic; • Develop a new communication strategy. In the event of a crisis, there is a danger that the company's actions will only be a response to the crisis. Right now is the time for companies to plan for the future and discuss new scenarios. From the research and surveys conducted, we may draw the conclusion that in the current situation, what is called the global pandemic, which is throwing the world into a severe economic crisis, how effectively companies continue to work. Every company considers an individual plan to get out of the crisis, it is important for the company to be able to adapt and provide additional services to use other assets, as well as significantly reduce unnecessary costs and strict control over other costs, and reduce market staff demand. Considering such experiences will help to maintain the reputation of “New Road” (Akhali Gza) Ltd. and return to the market with fewer losses due to close relations with partners.

Grantor dc:publisher

Institutional Repository of Vilnius University

Year dc:date

2020

Author dc:creator

• Gogelia, Daviti,

• Small and Medium Business, Pandemic

Statement dc:rights

• info:eu-repo/semantics/openAccess

Language dc:language

eng

Repository record dc:identifier

https://repository.vu.lt/VU:ELABAETD193301658&prefLang=en_US

OAI identifier oai:identifier

oai:vu.lt:elaba:193301658