26% of SMEs suspends activities during January-May due to COVID-19: Report

26% of SMEs suspends activities during January-May due to COVID-19: Report

A total of 26% of small- and medium-sized enterprises (SMEs) worldwide suspended their activities between January and May this year, due to the novel coronavirus (COVID-19).

In some countries, this percentage increased to as high as 50%, as government lockdowns and a global economic slowdown negatively impacted the companies around the world.

The statistics were published on Wednesday in a Facebook report entitled "The Global Status Report for the Small and Medium-Sized Business and Enterprise Sector“, conducted in partnership with the World Bank and the Organization for Economic Co-operation and Development (OECD).   

The report, based on a survey of over 30,000 SME owners in over 50 countries around the world, is the first in a continuous series that were planned prior to the pandemic.

With the pandemic slowly petering out, SMEs now need to resume liquidity flows to restore their business and keep up their ability to pay employee wages. The report stated that a large proportion of SMEs having reduced their workforce as part of their response to the pandemic's consequences during the time of the survey.

A total of 51% of companies surveyed in Egypt reduced their employee numbers, alongside 50% in the UAE, and 35% in Saudi Arabia.

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