• Jobs of the World
  • Mentoring Programme
  • Login for Grantees
  • Code of Conduct
  • About
    • History
    • Investigators
    • Team
  • Projects
    • GLM|LIC
      • Agricultural Labour Markets
      • Gender and Employment
      • Labour Markets in Low-Income Countries
      • Migration
      • Skill Training
    • G²LM|LIC
      • Fact & Policy
      • Fertility & Labour markets
      • Barriers to gender parity
      • The Future of Work
      • Policies & Welfare
    • COVID-19
  • Publications
    • Policy Briefs
    • Synthesis Papers
    • Working Papers
    • Published Articles
    • Book
    • Datasets
  • Events
  • For Policy Makers
  • Skip to main content
  • Skip to primary sidebar
G²LM|LIC Working Paper No. 56

SME’s During COVID-19

COVID-19
The Impact of COVID19 Pandemic on the Small Firms in Developing Countries

The study examines how cottage and microenterprises have been coping with Covid-19. It conducts a largescale panel survey of about 2300 microenterprises across Bangladesh. In the first round of the survey in July 2020, the study found that the average sales were less than half of that of pre-Covid levels and only about 60% of enterprises were fully open. While laying off workers was not that prevalent, employees in more than 80% of enterprises were facing a cut in working hours and wages. To assess the extent of recovery, the second round was conducted in January 2021 – eight months after the first lockdown. It appears that the enterprises have largely recovered; 97% of the enterprises were fully open for business. But they were still struggling with sales and orders, with sales remained 17% lower than the pre-Covid level, indicating a sluggish demand. Recovery was also uneven across sectors. Businesses that require more close contact have much lower recovery. Female workers were disproportionately affected by COVID-19 as they experienced lower wages and reduced employment prospects following the recovery. They also experienced worse psychological stress during the pandemic. These small and medium firms also hardly received any financial support after nine months of the announcing the initial stimulus by the government of Bangladesh, suggesting barriers to accessing such incentives.

G²LM|LIC Working Paper No. 56

SME’s During COVID-19

  • Asadul Islam
  • Margaret (Maggie) Triyana
  • Xing Xia
  • Atiya Rahman
  • Rafia Nisat
  • Fahad Mirza
  • Atiya Rahman
  • Rafia Nisat
Download the PDF

sidebar

Subscribe to our mailing list
Contact us
Follow us on Bluesky
Follow us on X

Established in 1998 in Bonn, Germany, IZA is an independent, non-profit research institution supported by the Deutsche Post Foundation with a focus on the analysis of global labour markets. It operates an international network of about 1,500 economists and researchers spanning across more than 50 countries.

Based on academic excellence and an ambitious publication strategy, IZA serves as a place of communication between academic science and political practice.

The Foreign, Commonwealth & Development Office (FCDO) leads the UK's work to end extreme poverty. We're ending the need for aid by creating jobs, unlocking the potential of girls and women, and helping to save lives when humanitarian emergencies hit.

FCDO is a ministerial department, supported by 12 agencies and public bodies.

© 2012–2025 | IZA – Institute of Labor Economics | Code of Conduct | Imprint