Impact of COVID 19 on Small and Medium-Sized Enterprises: Evidence from Egyptian Plastic Packaging Industry

ABSTRACT

The paper presents the impact of COVID 19 on small-and medium-sized enterprises and the survival initiatives based on the owners' perspectives. The authors focused on plastic packaging small and medium size producers working in Egypt as a case study. The study applies qualitative approach conducted through phone-based interviews with five selected SMEs' and also supported by desk research and followed by three experts' interviews with professionals working at the ministry of environment in Egypt. The paper finds that SMEs working in the plastic packaging in Egypt were hit significantly by COVID-19. The impacts of COVID 19 on SMEs are classified into operational problems and financial problems. Regarding operational problems, the number of paid employees and the total number of hours worked by paid employees were reduced by 50%. And in terms of production, clear disruption in the supply chain occurred. Regarding financials, they have limited cash on hand, yet they did not apply for a loan to cover their expenses and preferred to temporarily reduce production. This paper represents one of the first attempts to closely assess the impact of COVID-19 on Egyptian SMEs working in plastic packaging. The assessment considers various aspects including employment, production, supply chain, financials, and the outlook to capture the full potential cost of COVID-19. It also discusses the solid waste plan (2019-2023) and how the government can support the green initiatives related to plastic recycling. The results show that fiscal and monetary measures taken by the Egyptian government were not perceived as the ultimate support desired by SMEs in this specific industry. They wanted more tailored programs addressing their specific needs. © 2021 IEEE.