Firm’s Performance during Covid-19; A Case Study of Pakistan

Abstract

This research work on quantifying the impact of deadly contagious disease which is globally known and declared by WHO as coronavirus epidemic is motivated by inadequacy of existing literature, and attempts to shed light on the issues caused by this disease on the financial performance of the MSMEs firms in Pakistan. The government immediately started taking measures to cope with this virus when it broke out at the end of the year 2019, and extended support to micro, medium, and small-sized firms operating in the country as they are more vulnerable to such external shocks and account for almost 90% of the business economic activities as well as 50% of the employment ratio around the globe, thereby contributing more than 40% of the GDP in developing nations. However, this study attempts to deepen our comprehension and knowledge regarding the impacts of Covid-fear on micro, medium and small sized firms by using an online survey of these firms from 4 different sectors of Pakistan and exploring aspects such as profitability, sales, and employment conditions. The researcher considered adopting quantitative technique in this study and the results and findings of this research revealed negative effects which are according to the existing scholarly studies conducted so far on the consequences of this Covid-19 crisis.