A substantial number of micro, small and medium enterprises (MSMEs) are still unsure of their business’ survival two years since Covid-19 erupted, the latest study by research firm GeoPoll reveals.
The Africa MSME Pulse Survey covered 312 MSMEs across three different African markets including Kenya’s 102, it found that more businesses will continue to scale back operations, including laying off employees in spite of the pandemic appearing to be moving to endemicity in most parts of the world.
“In our study, three out of every four respondents say their business was negatively impacted by the pandemic.
The percentage is highest in Kenya at 81 percent,” the report reads in part.
This comes after GeoPoll research revealed that Kenyans were most likely to report losses in personal income and employment due to the pandemic.
A majority of the MSMEs surveyed in the study – which is about 57 percent, had to lay off, halt work, or reduce salaries for employees in the past two years.
The trend remained consistent across the three countries including Nigeria and South Africa, with the construction industry, for instance, hit particularly hard, with 80 percent, saying they had to take adverse hiring measures.
“With less income coming in, many construction clients likely halted long term projects over short-term uncertainties,” it noted.
More than 70 percent of the MSMEs, the survey conducted last December shows, were forced to close their businesses at least temporarily due to the pandemic, of which only 17 percent have fully resumed normal operations.
The largest percentage, 42 percent, shut down temporarily and have opened at limited capacity.
Despite many businesses resuming work to some extent, employment opportunities remain scarce as MSMEs try to recover lost time and revenue, it continued.
Overall, GeoPoll found that 43 per cent of the MSMEs say they are not likely to hire or rehire staff in the next three months (between January 2022 and March 2022), with only a quarter, saying they are very likely to fill positions.
Those fears are now being compounded by the looming August 9 General Election, a typical period employers tend to freeze hiring due to uncertainty of the polls outcome.