Problems Caused by the Impact of COVID-19 on Small and Medium Enterprises Management and its Solutions

Abstract

The present paper has been made a comparative analysis of Small and Medium-sized Enterprises to determine the impact of the COVID-19 pandemic-related restrictions and lockdown on their activity. At the same time has been analysed pre- and post-pandemic periods. Also, the paper provides opinions about the ways how to mitigate and avoid impact on small and medium enterprises (SMEs) caused by pandemics, which might reoccur in the future. The importance of SMEs in the world and Georgian economy has been estimated in terms of added value, GDP, turnover, manufacturing products, and working place formation. It has been concluded that SMEs can handle some minor and short-term issues by themselves with the elaboration of the business continuity plan and crisis management scenarios, but these still are needed the active involvement of state aid. The latter implies financial support and professional, informational, and technical support as well, such as state internet-platform available for SMEs for interactive coordination and communication between the parties and for rapid action from the state on those fields which has been damaged mostly.