Impact of Government Intervention Strategies on SME Success During the COVID-19 Pandemic in Sri Lanka

Abstract

The impact of government intervention strategies on SME success during the COVID-19 pandemic in Sri Lanka was investigated in this study. This is a quantitative, cross-sectional study examining small and medium-sized enterprises in the Walasmulla Divisional Secretariat. This study was done on a randomly selected sample of 209 SMEs, with main data collected via a questionnaire delivered by personal visits. The data was analyzed using descriptive statistics, correlation, and simple regression analysis. The results show that government intervention measures have a significant positive impact on SMEs' success, with a significant positive link between the variables. Following the study's findings, it was determined that government intervention strategies had a significant impact on SME success in Sri Lanka during the COVID-19 pandemic. The most pressing issue for SMEs amid the Covid-19 pandemic is finance. To that goal, the current report advises the government to encourage the implementation of new credit schemes as well as further conversations with concessional leaders and organizations. The unwillingness of respondents to interact with outsiders during the COVID-19 pandemic was a key obstacle in the data collection process in the current study. This was owing to health hazards and social isolation. Furthermore, the current study will serve as a guide for small and medium-sized business owners as well as future studies.