As the economic effects of the lockdowns worldwide begin to solidify, businesses large and small are collapsing, write BFA Global’s Coco Dong and Michelle Hassan.
In Kenya and China, small and medium enterprises are struggling to stay afloat. Given the difficulty in accessing government support, many owners have found their own solutions to stay in business, the authors write.
In China, digital platforms have been critical in helping SME owners find workaround solutions. In Kenya, platforms are also helping SMEs find solutions, though they have not adjusted or expanded access in response to COVID-19 as the Chinese platforms have.
The authors, however, note that these solutions are not enough emphasizing the need for governments and other stakeholders to find sustainable, medium-term solutions to help SMEs survive.