Incidence of sanitary crisis of COVID-19 on indebted of Small and Medium Enterprises in Bukavu town

Abstract

In the wake of sanitary crisis of VOVID-19, a significant economic crisis has affected different touched countries. The decisions takes to limit the spreading of the virus are hardly having negative impact on local economies. The Small and Medium Enterprises particularly touched by this virus are the main victims of the current crisis.

The main purpose of this study is to evaluate the incidence of sanitary crisis of COVID-19 on indebted of Small and Medium Enterprises in Bukavu town in Democratic Republic of the Congo. Our choice has pointed on Small and Medium Enterprises for they represent a significant segment of Congolese economy. They play a very significative role both on social and economic levels.

To reach our objective, 139 Small and Medium Enterprises were our sample of study. To analyse the datas, we wed a methodology based on truncated regression.

Considering this analyse, the obtained results via STATA 12 software, showed us that the indebted is statistically significative on the level of 1% (p= 0,000) and has a positive influence on the sanitary crisis of COVID-19. This results show that although the sanitary crisis of COVID-19, the Small and Medium Enterprises of Bukavu town were hardly paying back their contracted debts to financial Institutions but unfortunately the reimbursement were not being done in the respect of contractual agreement.

The results also show that the sanitary crisis has been the source of many problems preventing enterprises to run their business normally such as the closing of borders, lookdown, the depreciation of the Congolese currency, the square of foreign currencies, etc. That’s why the Congolese government and/or the financial partners should give financial aids to Small and Medium Enterprises (for example subventions) in order to improve difficulties of treasury.