The Impact of COVID-19 on Small and Medium-Sized Enterprises in Iraq

Abstract

This paper explores the impacts of COVID-19 on small and medium-sized enterprises in Iraq. This research analyses data using a linear probability model to estimate the impact of a pandemic on entrepreneurs, using an electronic data collection approach, and PLS modeling for the variables driving a multivariate probit model coping strategies. We find that most entrepreneurs (seriously and slightly), through a complete lockdown and motion limitation, have suffered from COVID-19 pandemics. The findings indicate the various effects of the COVID-19 pandemic according to an economic sector (agriculture versus non-agriculture). In the context of food and agriculture, the study highlighted that partial lock-up measures have increased likelihood impact on the low sales between enterprises, particularly for the non-agricultural sector. Furthermore, partial lockdown raises the probability of swapping methods (coping strategies), while complete lock-up negatively affects coping strategies. The need to discuss social security strategies such as palliative action can reduce the pandemic impact on SMEs in Iraq.