Vol. 2 (S) Jun. 2020

Article ID. JHSSR-1035-2020[S]

COVID-19 Impact on Business Sustainability: A Case of Micro-Small and Medium Enterprises in Malaysia

Raja Suzana Raja Kasim, Fakhar Shahzad and Wan Suzanna Aafanii Adeeba Wan Ibrahim


micro-SMEs, sustainability, COVID-19, Malaysia

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This paper examines the impact of COVID-19 pandemic on business sustainability among nine micro-small and medium enterprises (SMEs) in Malaysia. The paper also reviews literature on the history of COVID-19 disease during the period of February 15th and April 10th, 2020 which hit the country. The paper analyzes three factors that play a role in the micro-SME’s business sustainability before and after the Movement Control Order. These factors are resource allocation, compensation and working implementation. Data was collected using an online survey and personal telephone interview. The final sample from these nine SMEs was 30 entrepreneurs with 60% (18) males and 40% (12) females. The vast majority companies have between 11-50 employees. The participating SMEs by industry involved were in the consumer goods, transportation equipment, retail and wholesale and food services. This paper confirms with the past study that health and safety of employees have the utmost priority. Micro-SMEs are concerned about business sustainability where responses to develop continuity team to manage business sustainability and decision making highlight the micro-SME’s move towards the COVID-19. Following conclusions from the analysis are drawn that micro-SMEs are concerned over business sustainability, acting proactively, and making timely decision towards the COVID-19 outbreak. The results of this paper offer insightful information for micro-SMEs readiness in identifying critical positions, arranging crisis management, and making decision during the crisis. These findings highlight the need for further research to determine the post-pandemic activity and recovery plan of micro-SMEs to react towards the COVID-19.

DOI: https://doi.org/10.37534/bp.jhssr.2020.v2.nS.id1035.p9