The Impact of COVID-19 on Finnish SMEs

Abstract

Objectives

The main objectives of this study were to analyze the impacts of COVID-19 on Finnish SMEs, by identifying the state of SMEs prior to COVID-19 and comparing the results to data gathered after the effects of COVID-19 had taken place. The results were also compared to the financial crisis of 2008, in order to get a better idea of how COVID-19 compares to other global crises. Furthermore, the study looked into how SMEs can perform better during a global crisis, in order minimize the negative effects of a crisis.

Summary

A literature review was conducted to analyze the results of previously published studies regarding the effects of COVID-19 on economies and enterprises. A conceptual framework was created based on the cause-and-effect styled structure of the study, which explains how different factors affected the topic. The research of this study was conducted using secondary research, by analyzing previous studies and available data, in order to answer the research objectives set.

Conclusions

The impact of COVID-19 on SMEs is quite significant, as SME employment rates and net sales have decreased, and the number of SMEs in total have decreased as SME openings have decreased and closures have increased. However, comparing the results of COVID-19 to the financial crisis of 2008, it is clear that the financial crisis had a larger and more severe impact on the SMEs of Finland.