COVID-19
COVID-19
 
COVID-19
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Socio-Economical Impact on MSME's since Covid-19 outbreak

The aim of the study is to identify the challenges that micro, small, and medium enterprises are facing throughout the COVID-19 pandemic and to what extent those challenges affect their socio-economic status, specifically their employment status, income, debt, and living conditions.

Click to see impact of COVID-19 on MSME's

 
 

Main Takeaways

Women owned businesses are still facing greater impacts, yet are showing willingness to act in response

Whilst still disproportionately impacted, women that own businesses are showing better signs of recovery

  • Women were less likely to report a decrease in their monthly profit (59% compared to 71% of men that own businesses) and saw a greater reduction in the overall percentage who reported a decrease (35% compared to 21% of men owned businesses).

  • Women were less likely to report a decrease in demand (56% compared to 66% of men) and saw a greater reduction in the overall percentage who reported a decrease (-35% compared to -27% of men).

However, the support needed by women is still very important

  • 27% needed financial support to survive/expand their business in October 2020 (compared to 19% of men owned businesses and 20% overall).

Business owners in Siem Reap are continuing to suffer the impacts of COVID-19 through a lack of tourism

MSME's in Siem Reap experienced increasing issues with inputs

  • The number who referred to rising prices of inputs increase by 51% in October 2020 compared to July 2020.

  • Businesses were more likely to report issues with getting enough supply to meet demand in January 2021.

  • The number of businesses reporting difficulty in accessing inputs increased by 13% in October 2020 compared to July 2020, reaching in January 2021 Half (50%) of businesses had difficulty accessing inputs due to travel restrictions.

  • MSME's referring to the late arrival of inputs increased by 9% in October 2020 compared to July 2020.

  • As a result, 24% stopped ordering supplies in January 2021 compared to 7% in Cambodia.

Businesses in Siem Reap continued to see a decrease in demand

  • Despite a reduction of 19% compared to October 2020, 62% still reported a decrease in demand which was higher compared to other provinces, and compared to overall (50%).

As a result, MSME's in Siem Reap were increasingly likely to take measures to respond

  • Businesses were more likely to order less and 23% temporarily stopped ordering altogether in October 2020.

  • The number deferring their loan payments increased by 31% in October 2020 compared to July 2020.

  • 27% had negotiated their rental fee in February 2021 compared to 5% in Cambodia.

  • 18% had temporarily closed their business in February 2021, marking an increase since July 2020.

  • In January 2021, a fifth were selling their products or services online compared to 8% in Cambodia.

Businesses in Siem Reap had greater difficulties in accessing support

  • 56% said it was more difficult to access loans in October 2020.

  • Yet, there was a reduction in the number who were not receiving government support (78% in January 2021 compared to 95% in October 2020).

Businesses in Kampong Cham appear to be adversely affected by COVID-19

Businesses in Kampong Cham saw minimal improvements in profit and demand

  • They were increasingly likely to report a reduction in monthly profit (63% in January 2021 compared to 57% in October 2020).

  • Whilst businesses here saw a small reduction in the number reporting a decrease in demand, this was still higher compared to most other provinces, and overall.
     

They continued to face issues with the supply of inputs

  • Whilst issues with the supply of raw materials remained relatively stable, businesses in Kampong Cham saw a 18% increase (43% in January 2021 compared to 25% in October 2020).

  • 84% reported an increase in the price of inputs in January 2021.

  • As a result, businesses were more likely to order more stock to meet demand.