Impact of COVID19 on the performance of VSEs in the Fez- Meknes region: A comparative study using the Wilcoxon test of signed ranks

Abstract

This paper focused on a sample of 67 Moroccan VSEs operating in the region of Fez-Meknes. It provided some answers to the question of the impact of COVID19 on the performance of VSEs. In order to theoretically support the concept of performance and to measure it, we borrow the theoretical model of Morin, Savoie and Beaudin (1994), according to which performance results from four dimensions (sustainability, economic efficiency, value of human resources, legitimacy with external groups). A literature review on the VSE shows that it was already a fragile company struggling to survive in pre-crisis times. This financial, economic, social and organizational fragility weighs heavily on the performance and competitiveness of VSEs.

In order to provide elements of quantitative answers to our problem, we used the non-parametric test Wilcoxon signed ranks. The comparison of performance KPI’s before and after the crisis reveals that the effect of the health crisis is heterogeneous by sector. For VSEs operating in the construction, industry and service sectors, performance has deteriorated markedly in times of crisis. For these sectors, turnover and the budget allocated to investment have fallen, recourse to financing has increased, activity has been reduced, the supply chain has been disrupted, lead times payment has been slowed, staff turnover has increased. On the other hand, the commercial sector has shown resilience in the face of COVID19.

JEL classification : L25

Paper Type: Empirical Research