Image: Author (2025)
The COVID-19 pandemic exposed deep fragilities in the small and medium-sized enterprise (SME) sector. Research from 2021 laid bare how UK SMEs struggled with plummeting revenues, collapsed supply chains, and evaporating cash reserves. Emergency responses, government subsidies, digital pivots, and business model adjustments, were essential. But the question remains: did these interventions create lasting resilience or merely offer temporary relief?
Since 2023, both academic and policy debates have intensified around this issue. Reports from the World Economic Forum (2024) and the International Labour Organization (2023) have emphasised the need for structural shifts, especially in digital infrastructure, workforce capability, and inclusive policy, to ensure SMEs aren’t left exposed when the next crisis hits.
What COVID-19 Revealed: A Snapshot of SME Vulnerability
The data confirms what many suspected: SMEs were hit hardest and fastest. A summary of key challenges illustrates the scale:
| Challenge | % of SMEs Affected |
| Cash flow problems | 68% |
| Revenue decline | 59% |
| Supply chain disruption | 51% |
| Uncertainty and planning gaps | 49% |
| Mental health challenges | 42% |
Table 1: Key Challenges for SMEs During COVID-19 (Smith, 2021; Stephan et al., 2020)
Yet these statistics obscure important variation. Industry type, digital maturity, and business longevity all shaped how firms absorbed the shock. Resilience wasn’t just about survival, it was about adaptation.
How SMEs Responded: Innovation, Improvisation, and Digital Shifts
Despite their limited buffers, many SMEs responded with agility. Around 80% implemented remote work to reduce overheads, and 73% accessed government schemes (Smith, 2021). But whether these changes signal genuine strategic evolution, or were short-term coping mechanisms, remains debated.
Qualitative accounts from Nigerian SMEs offer a global echo of these struggles and adaptations.
“COVID was a nightmare, sales collapsed, supply chains froze with lockdowns. We had to shift quickly to WhatsApp and Facebook orders, adding delivery just to keep going.”
Soft drink retailer, Lagos (RPA 51, 2025)
“Our shipments from China stalled. We started virtual consultations and implemented safe installation practices. That saved us.”
Flooring and carpeting business, Lagos (RPA 50, 2025)
“For three months, I had no income. I dipped into my wife’s startup funds to survive. I’ve since built a website for virtual viewings, no more waiting on walk-ins.”
Real estate entrepreneur, Onitsha (RPA 46, 2025)
These accounts show resilience as a combination of reactive creativity and structural shifts, yet not all sectors could adapt. In hospitality and retail, the digital transition often proved insufficient.
Resilience or Survival Mode? The Post-COVID Reality
Even in recovery, many SMEs remain cautious. While 73% expressed confidence in expanding their teams, nearly half plan only one year ahead. Six percent expect to shut down altogether. This suggests many remain trapped in short-termism, a sign that resilience-building has not gone deep enough.
Beyond Emergency Relief: Rethinking Policy and Support
Policy responses to COVID-19, such as the UK’s Job Retention Scheme, were essential stopgaps. But long-term resilience requires more than liquidity injections. What’s often missing is investment in:
- Workforce reskilling
- Digital infrastructure tailored for small businesses
- Business model innovation aligned with shifting consumer habits
The post-pandemic era demands that policymakers, support organisations, and researchers refocus from survival to transformation. The resilience of the SME sector will increasingly depend on how well it is equipped for structural change, not just external aid.
Why This Matters for My Research
My work examines how SMEs in Nigeria adapted their value chains under crisis conditions. These insights confirm that resilience cannot be left to chance or one-off interventions. Building true readiness means embedding resilience into daily operations, value creation, and long-term planning. This requires:
- Digital integration: How can SMEs embed digital tools as core infrastructure, not just emergency workarounds?
- Business model renewal: What new revenue models or customer engagement strategies are fit for volatile environments?
- Policy innovation: How can government and ecosystem actors offer support that enables structural transformation, not dependency?
COVID-19 wasn’t just a disruption, it was a signal. It exposed outdated assumptions about how SMEs function and survive. If resilience is to mean anything in today’s crisis-prone world, it must be seen as a continuous process of adaptation, not a one-time response.