CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

With the corona disease epidemic at the end of 2019 and its global epidemic in 2020, the Organization for Economic Co-operation and Development (OECD) said that COVID-19 was the main cause of the global crisis since the financial crisis of 2008, which will lead to a widespread recession and halve economic growth.

The COVID-19 started with a health shock and eventually turned into an economic shock due to declining demand. This shock can be compared to the financial crisis of 2008. During the financial crisis of 2008, governments resorted to monetary and fiscal measures such as increasing the money supply by the central bank and enforcement by the government of expansionary fiscal policies to counter the severe recession by adding dynamism and speed to the money supply in the economy.

The strength of the financial crisis of 2008 provided an opportunity for the supply of labor, the revitalization of trade, and the revitalization of the transport system. However, during the COVID-19 crisis, most economic sectors were closed due to supply and demand restrictions. These include service providers, non-core retailing, tourism, and transport, which accounted for a significant share of GDP (Nicola et al., 2020).

In a scientific study, Farzanegan et al. (2020) conducted on small tourism businesses; a positive relationship was examined between these businesses and coronary disease at the time of coronary disease outbreak. Their regression analysis showed that countries exposed to high tourism flows are more prone to COVID-19 deaths. Odel (2016) reported that globalization has many benefits; it also has significant disadvantages, one of which is the worldwide spread of diseases. Today, the economies of many countries are directly and indirectly affected by the outbreak of the corona virus.

Various economic sectors such as tourism, the aviation industry, the automotive industry, exports and imports, and many influential sectors of the economy have been affected by the COVID-19. Due to the instability created in the global economy, the stock market index has fallen in many countries.

Only, in the United States, the stock index has fallen by about 10 percent, and this has also affected the global price of gold, where the price of an ounce of gold is around $ 1,900. Oil prices have plummeted to below $ 40 a barrel amid falling demand, especially in China's economy.

Some analysts believe that if these conditions continue, there is a possibility of further reduction in oil prices. Declining demand is the first domestic sign of the spread of corona virus in the country. Therefore, the decrease in sales in these sectors can prepare the ground for deepening the recession in the country.

In small and medium businesses (SMEs), some exemptions like; tax exemption, exemption from municipal taxes, reduction of water, electricity, and gas costs, and finally insurance support for these jobs and their employees by paying unemployment insurance until the normalization of society can be somewhat of a loss. However, the loss of these jobs and unemployment may prevent thousands of people, and the results of this synergy will certainly be for the government and the people (AKbay and Naji, 2020).

1. STATEMENT OF THE PROBLEM
    

The realities of covid 19 have created severe disruptions in enterprises, especially the micro, small and medium scale businesses. By extension, it is impacting on both the national and the global economies.

Most of the micro, small and medium scale businesses considered to be the engine room of any economy become closed especially during the first three months after social distancing or are not operating in full capacity.

And this is a direct response to current realities posed by Covid-19 infections. Due to the lockdown and social distancing, small business owners couldn’t make sales as there were restrictions everywhere.

Finally, several research has been carried out on impacts of covid-19 on food systems and poverty in Nigeria but not even a single research has been carried on the impact of covid 19 on small business owners; the first three month after social distancing restriction at sango market Ibadan.

1. AIM AND OBJECTIVES OF THE STUDY

The main aim of the study is to examine the impact of covid 19 on small business owners; the first three months of social distancing restriction. Other specific objectives of the study include;

1. to determine the effect of covid 19 on small business owners.
2. to determine the extent to which covid 19 affects small business owners.
3. to determine the correlation between covid 19 pandemic and small business owners.
4. to proffer possible solutions to the problems.
   1. RESEARCH QUESTIONS

1. What is the effect of covid 19 on small business owners?
2. What is the extent to which covid 19 affects small business owners?
3. What is the correlation between covid 19 pandemic and small business owners?
4. What are the possible solutions to the problems?
   1. RESEARCH HYPOTHESIS

Ho:  Covid 19 has no significant effect on small business owners.

Hi:   Covid 19 has a significant effect on small business owners.

1. SIGNIFICANCE OF THE STUDY

The study on the impact of covid 19 on small business owners; the first three months after social distancing restrictions will be of immense benefit to the entire Sango market Ibadan in the sense that it will educate the government to decide on effective measures needed to contain the continuous spread of the virus especially through development of research based and healthcare institutions.

The government should also encourage the reduction in taxes (VAT) on essential commodities including medicine and food, temporary salary advances and salary top ups, enhanced social security payments could be considered if the situation warrants such action.

Incentives could also be provided to private firms for business continuity, including the financial system, shipping, local businesses and agricultural farming which are essential for keeping the economy running.  Finally, the study will contribute to the body of existing literature and knowledge to this field of studies and basis for further research.

1. SCOPE OF THE STUDY

The study on the impact of covid 19 on small business owners; the first three months after social distancing restriction is limited to Sango market Ibadan.

1. LIMITATION OF THE STUDY

Time Constraints: One the challenges experienced by the researcher is the issue of time; the research will simultaneously engage in departmental activities like seminars and attendance to lectures. But the researcher was able to meet up with the deadline for the submission of the project.

Financial Constraints: Every research work needs funding; however lack of adequate funds might affect the speed of the researcher in getting materials for completion of the project.

1. DEFINITION OF TERMS

Impact:   A marked effect or influence.

Covid 19:         The coronavirus disease 2019 (COVID-19) is a communicable respiratory disease caused by a new strain of coronavirus that causes illness in humans.

Business Owners:   A business owner is the legal proprietor of a business. An individual or group that owns the assets of a firm and profits from them.

Social Distancing:  In public health, social distancing, also called physical distancing, is a set of non-pharmaceutical interventions or measures intended to prevent the spread of a contagious disease by maintaining a physical distance between people and reducing the number of times people come into close contact with each other.

Restriction:    The limitation or control of someone or something, or the state of being restricted.