The Economic Impact of Covid-19: A Study of Small and Medium Entrepreneurs in Khyber Pakhtunkhwa, Pakistan

Abstract

This research study focused on the economic impact of covid-19 on small and medium entrepreneurs. This research study was conducted in seven districts of Khyber Pakhtunkhwa. A total of 350 samples were randomly selected from seven districts. From each district 50 samples were selected including 25 small and 25 medium entrepreneurs. All the samples were taken from auto, hoteling, grocery, fresh food and garments industries. The results showed that stay-at-home policy inflicted huge economic cost both on small and medium entrepreneurs in Khyber Pakhtunkhwa. On average a small entrepreneur in Khyber Pakhtunkhwa lost US $1552.8 per day while every medium entrepreneur lost US $13084.2 per day in the garments industry during covid-19 lock down. Similarly, per day average cost of a small entrepreneur in Khyber Pakhtunkhwa was US $898.7 while that of the medium entrepreneur was US $6140.65 during covid-19 lock down. This financial lost/cost did not include any past or current liabilities rather it was derived from the sale and purchase data collected from the local entrepreneurs in Khyber Pakhtunkhwa.