PwC MSME Survey 2020

Impact of COVID-19 on MSMEs in Nigeria Workforce Disruption to the supply of labour, especially daily wage-workers as lockdown persist Inability to pay remuneration and other contractual obligations could lead to loss of skilled workforce to drive vision Emotional and psychological strain due to current uncertainties could impede innovation and efficiency Finance and liquidity Cash inflow constraints which will impact ability to meet due obligations could lead to risks of credit default and bankruptcy Revenue shortfall due to declined demand is a constraint to operations and execution of short to medium-term strategies Operations Loss of inputs to supply-chain challenges, as well as major customers to more adaptive and efficient large-scale competitors MSMEs are prone to higher burden from increased costs of factor underutilization Lack of access to adequate information on government support and strategies to mitigate impact on business H!i ► Business sentiment Uncertainty may dampen positive business sentiment and impede the commitment of resources to drive growth Lingered negative sentiment could make MSMEs to totally jettison vision and business idea PwC MSME Survey 2020 PwC June 2020 75

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