INVESTIGATION OF THE LEVEL OF COVID-19 SAFETY COMPLIANCE AMONG SMES IN NIGERIA

1.1 Introduction

The COVID-19 outbreak is a sharp reminder that pandemics, like other rarely occurring catastrophes, have happened in the past and will continue to happen in the future. SMEs have contributed greatly to Nigeria development by provision of employment, marketing of goods and services and, growth and development of rural areas. It has also brought about the growth of indigenous entrepreneurship in Nigeria. A business whether small or big, simple or complex, private or public, is created to provide competitive prices. According to PwC (2020), Nigerian SMEs contribute significantly to the Nation’s GDP and over 80% of the workforce. Yet enormous challenges hampering growth exist and COVID-19 heightens these. It is difficult for SMEs identify inherent growth opportunities in the aftermath of the pandemic or build lasting businesses for generations. With COVID-19, the challenges hampering the attainment of food security in Nigeria could deepen (PwC, 2020).

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.

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1.2 Background of Study

Small and medium scale enterprises has been a focal point of the various governments of the world, because SMEs have flexible configurations and immensely contributed to nation building respectively (Aderemi et al. 2019). Generally, the World Bank classified SMEs as businesses with maximum of 300 workers. Meanwhile, in Nigeria’s context, small and medium scale enterprises are conceptualized as business entities that have less than 50 employees. Basically, these enterprises possess investment in machinery and equipment that is less or equal to six hundred thousand naira and independently owned and operated with a view to generating job opportunities and meeting sales standard (CBN, 2018).

National Bureau of Statistics (NBS) estimated numbers of SMEs in Nigeria to be 41.4 million. The unique nature of SMEs lies in the utilization of raw materials from local sources, creation of employment, motivation for rural development, entrepreneurship development, mobilization of local savings and platform for self-employment. However, devastating effects of COVID-19 pandemic on both human and material resources in early 2020 cannot be forgotten in a hurry. The Wuhan-COVID-19 emerged in 2019 in China like the way Ebola did in West Africa in 2014. But, COVID-19 resulted into global pandemic- which spread across the globe without obstruction (WHO, 2020).

This novel virus sparked off various restrictions to movement of people, goods and services. The closure of factories businesses alongside reduction in production of goods and services was not left out due to the stay-indoors orders invariably reverberated its effect to activities of SMEs globally however after the lockdown with not all the SME’s functioning, the ordeal was how to ensure the rate of Covid-19 spread is drastically reduced. This is only achievable when SME owners and patronizers comply to the stipulated safety guidelines. Evidence from Worldometre 2020 indicates that asymptomatic infection and transmission of COVID-19 is possible. Asymptomatic infection occurs when an individual is infected but experiences no symptoms, while asymptomatic transmission occurs when an infected individual without symptoms transmits the virus to another person.

These evidences imply that in countries like Nigeria, where the capacity to conduct mass testing is lacking and contact tracing is not very effective, asymptomatic and pre-symptomatic cases act as silent spreaders and this underlines the importance of social distancing, regular hand washing and good hygiene, and mask wearing to be practiced primarily among the general public especially owners and patronizers of SMEs.

Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Level of Covid-19 Safety Compliance among SMEs.

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1.3 Statement of Problems

Investigation revealed that small and Medium Enterprises like Supermarkets, Hotels, Fastfood Restaurant and manufacturing industries are as highly susceptible to COVID-19 as other public establishments visited by large numbers of people who interact among themselves and with employees. They are places where guests stay temporarily in close cohabitation and where there is a high degree of interaction customers and workers. These critical issues are not only related to supermarket, restaurants, and cafeterias. In fact, enterprises that are into production of goods and services whereby their client and customers require specific attention, every staff member and customer must strictly comply with the basic protective measures against COVID-19 recommended by the WHO.

SMEs are required to strictly follow their staff health, sanitary measures, and correct use of personnel protective equipment during work, applying rigorous visitor/customer policies. Cleaning and disinfection of frequent and high touch points with approved chemicals and sanitizers with defined frequencies and practicing social distancing and employee optimization during shifts can be helpful in preventing the spread of Coronavirus. Thus, this study sought to investigate the level of covid-19 safety compliance among SMEs in Nigeria.

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1.4 Aim and Objectives of Study

The aim of the study is to investigate the Level of Covid-19 Safety Compliance among SMEs in Nigeria. In achieving this aim, the following specific objectives were laid out as follows:

1. To assess the different established covid-19 safety measures that SMEs comply on in the area under review;
2. To examine the level of covid-19 safety compliance among SMEs in Nigeria; and
3. To determine if the owners of SMEs are strict at adhering to the covid-19 safety measures in the area under review.

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1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• Are owners of SMEs strict in adhering to the covid-19 safety measures in Nigeria?
• What are the different covid-19 safety measures that SMEs comply on in Nigeria?
• What is the extent of Covid-19 safety compliance among staffs and customers in SMEs in Nigeria?

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1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: The level of covid-19 safety compliance among SME customers is low
• H1: The level of covid-19 safety compliance among SME customers is high

Hypothesis Two

• H0: The owners of small and medium scale enterprises are not strict in adhering to the covid-19 safety measures in Nigeria
• H1: The owners of small and medium scale enterprises are strict in adhering to the covid-19 safety measures in Nigeria

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1.7 Significance of Study

This study would heighten the level of awareness of SME’s owners and employees on the need to comply with the covid-19 safety measures as they are at a high risk exposure to the diseases while rendering commercial services and product.

It will compel chief executive officers, managing director, and business owners on the need to ensure they put up facilities and equipment that will enable the effective compliance to this Covid-19 safety measures within their business premises or factories.

It will enable government to ensure that authorities involved like Covid-19 task force to do a regular check on Small and Medium Enterprises to ensure that high compliance level is maintained which will reduce the spread of this novel disease.

Thus study will also serve as a guide to academician for further academic purpose in this area of research.

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1.8 Scope of Study

The scope of the research is focused on the Investigation of the Level of Covid-19 Safety Compliance among SMEs in Nigeria using Kilimanjaro Fast Food and Pick Payless Supermarket in Port Harcourt Rivers State as a case study.

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1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this research work. There were lots of information needed from the staffs of this establishment to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
3. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
4. Lack of Initial Cooperation from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.

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1.10 Definition of Terms

COVID-19:

Corona virus disease 2019 (COVID-19) is defined as illness caused by a novel corona virus called severe acute respiratory syndrome corona virus 2.

SMEs:

Small and Medium-sized Enterprises (SMEs) are non-subsidiary, independent firms which employ less than a given number of employees.

Safety:

It is the condition of being free and protected from risk or anything that is harmful

Compliance:

It means adhering to stipulated rules, specifications, procedures, policies and laws