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Volume 12 Issue 1
ISSN NO: ISSN-L (online): 2026-500X Journal Homepage: https://journal.ucc.edu.gh/index.php/jobed
The Impact and Resilience of Mauritian SMEs: Sales Dynamics
during the COVID-19 Pandemic
Eric Bindaha* and Leenshya Gunnoob
aUniversity of Mauritius
bUniversity of Technology Mauritius
DOI: https://doi.org/10.47963/jobed.v12i.1497
*Corresponding Author: bindahe@yahoo.co.uk / e.bindah@uom.ac.mu
How to cite this Paper: Bindah, E., & Gunnoo, L. (2024) The Impact and Resilience of Mauritian SMEs: Sales Dynamics during the COVID-
19 Pandemic. Journal of Business and Enterprise Development (JOBED), 12(1). https://doi.org/10.47963/jobed.v12i.1497
Keywords
Abstract
Small and Medium-sized
Enterprises (SMEs)
Sales Dynamics
Economic Impact
Adaptive Strategies
Government Intervention
Mauritius
Received: 16th June, 2024
Revised: 18th September, 2024
Accepted: 24th September, 2024
The COVID-19 pandemic has left an indelible mark on the global economy, significantly
impacting small and medium-sized enterprises (SMEs) in Mauritius. This study
investigates the sales dynamics of local SMEs during the COVID-19 pandemic. Through
a quantitative survey, data was collected data on sales performance during the pandemic
to gain comprehensive insights into the challenges faced and the adaptive strategies
employed by these businesses. The findings underscore the challenges that the majority
of participants encountered during the pandemic, with a notable decline in sales
emerging as a central concern. The study reveals the diverse measures adopted by these
enterprises to navigate the unprecedented economic turbulence. Notably, many turned to
online sales channels, implemented cost-cutting measures, and adjusted their workforce.
Furthermore, our research sheds light on the perceptions of government intervention
among these businesses. A significant proportion expressed satisfaction with the
government's response, believing in its effectiveness. This study offers valuable insights
into the multifaceted impact of the COVID-19 pandemic on local SMEs in Mauritius and
identifies the strategies adopted by these enterprises to adapt to the continually evolving
economic landscape. These findings hold significance for policymakers, business
proprietors, and other stakeholders as they craft and implement strategies to support and
rejuvenate local businesses in the post-pandemic era.
Editor-in-Chief:
Anthony Adu-Asare
Idun
Copyright (c) 2024
Eric Bindah and
Leenshya Gunnoo
This work is licensed
under a Creative
Commons
Attribution-Non
Commercial 4.0
International License.
Introduction
The COVID-19 pandemic has had far-reaching effects on various sectors of the
economy, disrupting supply chains, business operations, and consumer behaviours
worldwide. Mauritius, like many other nations, experienced a profound impact on its
business landscape, with sectors such as travel, tourism, and retail facing unprecedented
challenges. The sudden downturn in economic activity led to business closures and a
significant decline in the nation's GDP, highlighting the vulnerability of local businesses
to external shocks. The pandemic-induced lockdown measures further exacerbated the
situation, forcing many organizations to adapt rapidly or risk closure.
In Mauritius, as in many countries worldwide, SMEs are regarded as the backbone of
the national economy, playing a vital role in economic development and job creation.
The outbreak of the COVID-19 pandemic introduced several new areas of study for
SMEs, such as the necessity to be agile to boost a lag in performance (Gerald et al.,
2020; Hadi 2020) and to increase productivity (Nyanga & Zirima, 2020) in order to
mitigate against financial difficulties (McGeever et al., 2020). Small and local
businesses, in particular, struggled to cope with the sudden shift towards online sales
and the uncertainty surrounding consumer demand.
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Crises such as the COVID-19 pandemic tend to disproportionately impact SMEs (Laufs &
Schwens 2014; OECD 2009), due to their limited resources (human, financial and technical) compared to
large firms (Martin et al. 2019; Narula 2004). The resilience of these businesses became a focal point for
policymakers, academics, and the general public, prompting a deeper examination of the pandemic's impact
on sales dynamics and business survival.
COVID-19 pandemic
The pandemic has profoundly impacted the global economy, with far-reaching consequences for
businesses across various sectors, from project management and logistics to education, retail, and more.
This study, hones in on the specific effects of the pandemic on Mauritius' business sector. The pandemic
led to a sharp decline in economic activity, causing unprecedented debt accumulation among businesses. In
2020, the nation's GDP plummeted by nearly 15%, and sectors like travel and tourism faced prolonged
periods of revenue loss. These sudden crises disrupted market competition, triggered business closures, and
resulted in significant economic shifts.
The pandemic has brought about an unparalleled upheaval, affecting people, national and global
economies, and various aspects of business. Lockdowns and restrictions have adversely impacted most
organizations, and these consequences persist as the virus's effects continue to evolve. This period presents
entrepreneurs with unique opportunities to demonstrate their adaptability in the face of adversity. Marketing
researchers studying the short-term and long-term effects of COVID-19 on consumer behaviour and how
businesses are modifying their marketing strategies are facing unprecedented challenges.
Notably, many companies have shifted to online sales channels to weather the pandemic's
economic storm. To preserve their income, numerous firms have used the pandemic as an opportunity to
critically assess the comprehensiveness and depth of their product ranges. Furthermore, price dynamics
have played a pivotal role for both consumers and businesses during the economic downturn, necessitating
careful management as a marketing strategy.
Overall, SMEs tend to exhibit lower resilience compared to larger firms, resulting in prolonged
recovery times, if they manage to resume normal operations at all, following a crisis. This vulnerability was
particularly evident after the 2008 global financial crisis, during which SMEs faced significant declines in
demand and financial distress. Consequently, it is crucial to study SMEs in the recovery from the economic
downturn caused by the COVID-19 pandemic. Local businesses, reliant on foot traffic and face-to-face
interactions, have also suffered severe blows. The pandemic's impact on local businesses has sparked
interest and concern among policymakers, academics, and the general public. Understanding the breadth
and significance of this impact is vital for devising effective policies and strategies to support these
businesses and promote economic recovery.
This study aims to assess the impact of the COVID-19 pandemic on the sales of local businesses
in Mauritius. The COVID-19 pandemic has wrought unprecedented disruption across global economies,
including Mauritius, significantly impacting various sectors and posing substantial challenges to local
businesses. Amidst economic downturns due to the COVID-19 pandemic, businesses in Mauritius,
particularly SMEs, have encountered challenges to maintaining sales levels and sustaining operations. The
sudden transition towards online sales channels, coupled with uncertainties surrounding market demand
and the effectiveness of traditional marketing strategies, has intensified the struggle for business survival.
Additionally, government policies, market dynamics, and unique business characteristics further complicate
the landscape, necessitating a comprehensive understanding of the factors influencing sales. Therefore,
there exists a critical need to assess the specific impact of the COVID-19 pandemic on the sales of local
businesses in Mauritius, identifying key determinants and exploring avenues for policy interventions and
strategic support to foster recovery and resilience in the post-pandemic era.
Literature Review
The theoretical stance encompasses theories of technological evolution and innovation, economic
resilience, and financial access in entrepreneurship. These theories provide a conceptual framework for
understanding the dynamics of how businesses adapt to technological change, withstand economic shocks,
and access financial resources to drive entrepreneurial success. Within this framework, Utterback's theory
(1994) on technological evolution and Foster's (1986) perspective on the challenges faced by new
technologies during their rapid growth phase form the basis for understanding technological adaptation.
Additionally, the concept of economic resilience, as articulated by Gheorghe et al. (2014), underscores the
importance of businesses building resilience to withstand economic shocks. In the area of entrepreneurship,
theories of financial access and its impact are prominent, with authors such as Buno et al. (2015), Ahmad
and Arif (2015), Ali et al. (2023), and Addo & Asante (2023) highlighting the barriers posed by inadequate
access to capital for SMEs and the moderating role of financial literacy on SME growth. Together, these
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theories provide a comprehensive theoretical stance for understanding the dynamics of technological
adaptation, economic resilience, and entrepreneurial success.
Impact on Local Businesses
The COVID-19 pandemic has led to detrimental effects on local businesses in Mauritius. A report
by the Mauritius Chamber of Commerce and Industry (MCCI) in 2020 highlighted the severity of the
impact. According to the report, a staggering 96% of local businesses experienced a decline in sales due to
the pandemic. This decline can be understood through the lens of economic resilience, a concept that
evaluates an organization's ability to adapt and recover from disruptive events (Gheorghe et al., 2014).
Additionally, 62% of these businesses had to reduce their workforce, and 33% temporarily shuttered their
operations (MCCI, 2020). The application of organizational resilience theory (Hamel & Välikangas, 2003)
in this context underscores the challenges businesses faced in adapting to unforeseen disruptions.
Furthermore, the pandemic disrupted supply chains for local businesses in Mauritius, as noted by Munien
et al., (2021). The closure of international borders resulted in shortages of essential raw materials and inputs,
forcing some businesses to halt operations or scale back production. This disruption can be viewed through
the lens of supply chain resilience (Ponomarov & Holcomb, 2009), which examines the capacity of supply
chains to adapt to disruptions. It also emphasizes the need for businesses to adopt agile supply chain
strategies (Christopher et al., 2011) to navigate such challenges.
Shifts in Consumer Habits
Consumers became more cautious, with a heightened focus on health and safety. This change led to
increased online shopping and home delivery services. The adoption of online shopping aligns with the
theory of innovation diffusion (Rogers, 1962), where new technologies and practices are adopted by
consumers over time. The pandemic accelerated this diffusion process. Laroche et al. (2020) emphasized
the acceleration of the shift towards online shopping, even among older consumers who were previously
hesitant to shop online. This aligns with the concept of the digital divide (Van Dijk et al., 2005), where
disparities in technology adoption across demographic groups are addressed.
Empirical Evidences
Impact on Sales
According to a study conducted in Indonesia, MSMEs' sales decreased as a result of COVID-19
in a number of ways. MSMEs had a 36 percent reduction in sales in North Kalimantan, a 44 percent decline
in Sumatera, and a 34 percent decline in West Kalimantan (Soetjipto et al., 2020). Sales of MSMEs were
under increased pressure as a result of China's social restriction policy, which decreased social and
economic activity (Lu et al., 2020). Restrictions on shop opening hours outlined in security and health
procedures were the root reason of the MSME sales decline.
The economic impact of the pandemic was substantial, with Mauritius experiencing a 14.9%
contraction in GDP in 2020 (World Bank, 2020). This decline was primarily driven by a decrease in sales,
as many local businesses were unable to operate due to lockdowns and reduced consumer demand. The
concept of economic resilience (Gheorghe et al., 2014) becomes relevant here, emphasizing the need for
businesses to build resilience to withstand economic shocks.
Adaptation
The literature on technological evolution and innovation provides a theoretical backdrop for
understanding the dynamics of competing technologies and the adaptive strategies employed by businesses.
Utterback (1994) argues that new technologies typically lack the performance or cost advantages of
established ones when they first emerge. This notion is echoed by Foster (1986), who emphasizes the
inferior performance of new technologies during the rapid growth phase of established ones.
Adner & Levinthal (2002) further contribute to this discourse by suggesting that new technologies are
unlikely to initially dominate established ones in their primary domains of application. Similarly,
Christensen (1992) provide evidence that new technologies often offer lower benefits than old technologies
when they first appear.
Despite these initial disadvantages, Utterback (1994) contends that new technologies often possess
greater potential for better performance, eventually surpassing established ones. This phenomenon is
illustrated by examples such as steamships replacing wind-powered ships (Foster, 1986) and airplanes'
turbojet engines replacing internal combustion engines.
Government Intervention
The start of the COVID-19 pandemic has had a significant impact on SMEs. In some countries
government has responded to the COVID-19 pandemic by implementing the Economic Stimulus Package
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such as in Malaysia. Furthermore, access to financial resources (AtFR) is vital to pursuing growth
opportunities and meeting individuals’ specific needs (Buno et al. 2015). According to the authors of Ahmad
and Arif (2015), inadequate access to capital is a significant barrier to SMEs and generates a negative
attitude among members of the society towards entrepreneurs. In the same dimension, the authors of Ali et
al. (2023) demonstrate the tremendous importance of and the considerable role played by favorable
financial access in encouraging entrepreneurs to start their own businesses and make financial returns.
Similarly, in the context of developing countries’ economies, the findings of a seminal work Addo
et al., (2023) show financial literacy’s positive and significant moderating impact of the development of
the association between SME growth and AtFR. In comparison, the findings in Bongomin et al. (2017)
show financial literacy’s reducing contribution to the monitoring of SMEs’ capital structures and growth.
Furthermore, in the Baltic States and in South Caucasus countries, AtFR does not hinder business
operations and regulates the likelihood of entrepreneurial strength (Hussain et al. 2018). In a similar vein,
AtFR and financial depth are favorable for growth. Greater levels of AtFR result in greater optimism about
financial growth (Imarhiagbe et al. 2021). More recently, firms funded by government agencies and state-
owned banks were more vigorously inclined towards innovative activities and enhancing their performance
(Haini 2021). Consequently, relevant research demonstrates that AtFR has predictive power in the
strengthening of entrepreneurship and entrepreneurs’ financial returns through innovation and
improvements in their performance (Addo et al., 2023; Hussain et al. 2018; Haini 2021).
Response Measures
Businesses adopted various measures to survive and continue operations during the COVID-19
pandemic. Government assistance played a crucial role, with financial aid being a key strategy to help
businesses mitigate the pandemic's devastating effects. This reflects the application of government
intervention theory (Hood, 1986), which explores the role of governments in responding to crises and
providing support to businesses.
Hypothesis 1: The COVID-19 pandemic has led to a significant decline in sales for local businesses in
Mauritius.
This hypothesis aligns with the observed findings from the literature review. As indicated by the
Mauritius Chamber of Commerce and Industry (MCCI) report in 2020, a substantial 96% of local
businesses reported a decline in sales due to the pandemic. This decline can be attributed to various factors,
including disruptions in supply chains, reduced consumer demand, and the economic consequences of the
pandemic (MCCI, 2020; World Bank, 2020). Therefore, it is hypothesized that the pandemic has indeed
resulted in a notable decrease in sales for local businesses in Mauritius.
Hypothesis 2: Government interventions have mitigated the negative impact of COVID-19 on sales for local
businesses in Mauritius.
This hypothesis takes into account the role of government assistance, as highlighted in the
literature review. Various governments, including Mauritius, implemented measures to support businesses
during the pandemic (Fioruzzi et al., 2020; Mauritius National Assembly, 2022). Financial aid and tax
breaks were among the strategies employed to help businesses survive and recover. Given these
interventions, it is hypothesized that government actions have played a crucial role in alleviating the adverse
effects of COVID-19 on sales for local businesses in Mauritius.
Methods
This study employed convenience sampling to recruit participants from various business sectors
across Mauritius. Convenience sampling was chosen as the sampling method due to its practicality and
accessibility, allowing for the inclusion of a diverse range of businesses without the constraints associated
with more complex sampling methods (Rahi, 2017).
Participants were selected based on their availability and willingness to participate in the study,
making it easier to reach a larger pool of potential participants within a relatively short timeframe.
Convenience sampling also facilitated broader representation from different industries, geographic regions,
and business operation statuses, ensuring a comprehensive perspective on the impact of the COVID-19
pandemic on the local business landscape (Alvi, 2016).
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Efforts were made to ensure a balanced representation of businesses across different key sectors,
including food service facilities, construction, manufacturing, financial services, electrical engineering,
beauty parlours, and others. This diversity in business types was essential for capturing a wide range of
perspectives and experiences related to the pandemic's effects on various industries. The recruitment
process involved outreach efforts targeting business owners and entrepreneurs through various channels,
including social media, business associations, and local community networks. Participants were invited to
participate voluntarily, and their decision to take part in the study was entirely voluntary.
Despite the inherent limitations of convenience sampling, such as potential biases and the lack of
generalisation, it was deemed suitable for this study given the practical considerations and the need to gather
data from a broad spectrum of businesses (Acharya et al., 2013). The use of convenience sampling allowed
for flexibility and efficiency in participant recruitment, ultimately contributing to the richness and diversity
of perspectives represented in the study.
The quantitative data was gathered through surveys conducted with 150 local entrepreneurs from
sectors including manufacturing, agriculture, tourism, and construction, among others, between June 2023
and October 2023. This effort resulted in a response rate of 136 participants, which was used to examine
the impact of COVID-19 on local businesses during and after the pandemic.
A questionnaire comprising 20 questions was organized into four distinct sections: demographics,
the impact of the COVID-19 pandemic on sales, strategies adopted by businesses in response to the
pandemic, and an evaluation of government interventions during this challenging period. Data collection
was facilitated through an online survey platform, specifically Google Forms, aligning with the study's
objective of examining the evolving impact of COVID-19 on local businesses. A pilot test was conducted
to ensure the questionnaire's effectiveness and usability in capturing responses related to different phases
of the pandemic. The collected data underwent analysis using the Statistical Package for the Social Sciences
(SPSS), employing descriptive statistics to summarize findings. Ethical considerations were prioritized
throughout the research process, with participants invited to participate voluntarily and their rights to
confidentiality and privacy upheld.
Results and Discussion
The findings of this survey are presented and discussed in relation to the research objectives, hypotheses,
and the problem statement.
Reliability of the Survey
Table 1 displays the reliability statistics, indicating the internal consistency of the 20-item survey
used in this study. The Cronbach's alpha coefficient of 0.827 suggests a high level of reliability, surpassing
the acceptable threshold of 0.70 (George & Mallery, 2003). The high reliability suggests that the survey
items consistently measure the same construct and are valid for this study. The study's strong reliability
coefficient (Cronbach's alpha of 0.827) underscores the robustness of the survey instrument. This high level
of internal consistency indicates that the survey items consistently measure the same underlying constructs.
Consequently, the findings derived from this survey can be considered highly valid and reliable, ensuring
that the conclusions drawn from the data accurately reflect the experiences and perceptions of the
participants.
Participants' Business Types
Predominantly, participants owned food service facilities, followed by construction and
manufacturing. Conversely, financial services, electrical engineering, and beauty parlours each had only
one participant owner. This might be because certain sectors, such as food service, construction, and
manufacturing, may have been more severely impacted by the COVID-19 pandemic and its associated
restrictions. Consequently, owners and stakeholders in these sectors may have been more motivated to
participate in a study examining the pandemic's impact on local businesses. Also, these businesses have
their widespread presence in the local economy. This high prevalence likely contributed to a larger pool of
potential participants in this sector.
Understanding the diversity of participants' businesses is essential to identify common challenges and
opportunities within specific sectors. This information can guide policymakers and stakeholders in tailoring
support for small businesses in different industries, consistent with previous research (Akter et al., 2020).
Participants' Geographic Locations
Figure 1 presents the distribution of participants by region, with Flacq, Port Louis, and others,
having the highest representation. Geographic location plays a significant role in entrepreneurship success,
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impacting factors such as resource availability and government policies (Babbie & Mouton, 2001).
Understanding this distribution informs regional strategies and policies for entrepreneurship development.
Figure 1: Distribution of participants by region
Years in Business Operation
Table 1 reveals the analysis of participants' business operation years. A majority of participants
(33%) have operated their businesses for over ten years, while 32% have been in business for five to ten
years. These businesses likely have a strong foundation, established customer bases, and extensive industry
experience, which could influence their resilience and adaptive capacity during challenging times like the
COVID-19 pandemic. This suggests a significant level of experience among participants, impacting their
entrepreneurial orientation and risk-taking behavior (Gupta & Batra, 2020).
Table 1: Participants' business operation years
Years in operation Frequency Percent
More than 10 years
45
33%
Between 5 to 10 Years
43
32%
Between 1 to 5 years
36
26%
Less than 1 year
12
9%
Total
55
100%
Source: Authors’ own compilation from SPSS software version 22.
Business Operation Status
Table 2 outlines the participants' business operation status, indicating that 75% of participants
reported their businesses were fully operational. This reflects a notable degree of resilience and adaptability
within the local business community. These businesses have managed to navigate the disruptions, pivot
their operations, or implement strategies to maintain continuity despite the adverse circumstances.
Table 2: Participants' business operation status
Status
Frequency
Percent
Fully in operation
102
75%
Partially in operation
27
20%
Not in operation
7
5%
Less than 1 year
13
10%
Total
136
100%
Source: Authors’ own compilation from SPSS software version 22.
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Impact of Sales
The COVID-19 pandemic has significantly impacted businesses worldwide, particularly in terms of
declining sales. Table 3 presents participants' perceptions of this impact.
Table 3: Participants' perceptions of this impact.
Statement
Yes
No
Total
In the past year, have you noticed a significant
decline in sales for your business?
85%
15%
100%
Have you had to lay off or furlough any employees
due to the pandemic's impact on sales?
38%
63%
100%
Source: Authors’ own compilation from SPSS software version 22.
A staggering 85% of participants reported a significant decline in sales in the past year, reflecting
the challenges imposed by pandemic-related restrictions. While 63% of respondents did not lay off their
employees, it's important to note that this figure alone does not fully indicate the level of employee retention
during a period of declining sales. Despite the challenges posed by reduced sales, many businesses opted
to retain their employees. This decision was attributed to the availability of government support programs
such as the Government Wage Assistance Scheme (GWAS) and the Self-Employed Assistance Scheme
(SEAS). These programs provided businesses with financial assistance and relief, enabling them to continue
paying their employees despite facing difficulties due to the pandemic-induced decline in sales. Therefore,
the high percentage of businesses that did not lay off employees may be influenced by the support provided
by the government schemes, rather than solely reflecting the stability of sales during the pandemic.
These findings align with previous studies highlighting the pandemic's adverse effects on sales
and employment (Akhtar et al., 2021; Caporale et al., 2022). It underscores the urgent need for businesses
to adopt proactive strategies to mitigate these impacts, such as embracing digitalization and diversifying
revenue streams. The pandemic has accelerated the importance of innovation and adaptability in business
models, and these findings underscore the imperative for small businesses in Mauritius to evolve.
Adaptation to the Pandemic
Figure 2 below reveals that 89% of participants believed their businesses could survive long-term
despite the ongoing pandemic impact. The high level of confidence in long-term survival also highlights
the resourcefulness and innovation exhibited by entrepreneurs in response to the pandemic. This resilience
further suggests that Mauritian businessmen are optimistic and adaptive in the face of adversity.
Figure 2: Authors’ own compilation from SPSS software version 22.
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Participants employed various strategies to adapt, including implementing safety protocols,
shifting operations online, and diversifying product offerings. The empirical findings directly mirror the
theoretical concepts outlined in the literature review. For instance, the implementation of safety protocols
and online operations corresponds to the notion that businesses initially face challenges with new
technologies. Likewise, the diversification of product offerings reflects the potential for new technologies
to eventually surpass established ones, as businesses adapt and expand their offerings to meet changing
market demands.
Government Intervention
Table 4 highlights government intervention during the pandemic. The role of government
intervention during the pandemic is a critical dimension of these findings. A substantial 71% of participants
reported receiving financial support from the government. A similar percentage believed that the
government's support measures were effective.
Table 4: Statement illustrating perception of participants on the requirement for government intervention
Statement
Yes
No
Maybe
Total
Have you received any financial support from
the government to help mitigate the impact of
the pandemic on your business?
71%
29%
0%
100%
Do you feel that the government's support
measures have been effective in helping your
business to cope with the pandemic's impact
on sales?
71%
29%
0%
100%
Have you been able to retain your employees
thanks to the government's support measures?
72%
28%
0%
100%
In general, do you feel that the government
has done enough to support local businesses
during the pandemic?
54%
15%
31%
100%
Source: Authors’ own compilation from SPSS software version 22.
It's essential to view these findings as an opportunity for positive change and growth. They strongly
suggest that the government has played a significant role in supporting the business community. By actively
listening to the concerns of the business community and taking swift, well-targeted action, the government
has enhanced its role as a partner in economic recovery. The findings echo prior research highlighting the
necessity of well-communicated and tailored government support to alleviate the economic distress faced
by businesses during crises. In the post-pandemic era, governments have the unique chance to transform
these challenges into opportunities for building stronger, more resilient economies. Effective government
intervention can serve as a driving force for positive change and renewed economic vitality. (Brülhart et
al., 2020). By alleviating financial pressures and supporting operational continuity, the GWAS and SEAS
have contributed to the overall sustainability of businesses. This scheme has helped prevent layoffs,
business closures, and economic dislocation, thereby safeguarding jobs, preserving livelihoods, and
maintaining stability within the local economy. Similar to the Mauritian Government, the United Kingdom
and other OECD economies have implemented measures such as loan guarantees and direct subsidized
loans as policy responses to address SMEs' finances during the COVID-19 pandemic (Brown et al., 2020).
Conclusion and Recommendation
The findings of this study underscore the significant impact of the COVID-19 pandemic on businesses in
Mauritius, particularly in terms of declining sales and subsequent employment implications. A staggering
85% of participants reported a significant decline in sales, leading to 38% of businesses needing to lay off
or furlough employees. However, it's crucial to note that while 63% of respondents did not lay off their
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employees, this figure alone does not fully capture the extent of employee retention during the period of
declining sales. The decision to retain employees amidst challenges in sales can be attributed to the
availability of government support programs such as the Government Wage Assistance Scheme (GWAS)
and the Self-Employed Assistance Scheme (SEAS). These programs provided businesses with financial
assistance and relief, enabling them to continue paying their employees despite facing difficulties due to
the pandemic-induced decline in sales. Many scholars have also emphasized the anti-crisis package to
support SMEs in different countries (Deliu 2020; Li 2020 and Fernandes 2020)
Furthermore, participants demonstrated remarkable resilience and adaptability in response to the
pandemic. Strategies such as implementing safety protocols, shifting operations online, and diversifying
product offerings were employed to navigate the challenges posed by the pandemic. These adaptive
measures align with theoretical concepts outlined in the literature review, emphasizing the importance of
innovation and adaptability in business models during crises. The finding confirms the findings of prior
research indicating that resilience is essential for survival of SMES. (Ayala 2014 & Lengnick-Hall, and
Beck 2005)
Government intervention played a crucial role in supporting businesses during the pandemic, with
a substantial majority of participants receiving financial support and acknowledging its effectiveness. This
underscores the importance of well-targeted government support in alleviating economic distress and
facilitating post-pandemic recovery. Moving forward, there is an opportunity for positive change and
growth, with effective government intervention serving as a catalyst for building stronger and more resilient
economies in the post-pandemic era.
These findings highlighted the need for businesses to adopt proactive strategies, embrace
digitalization, and diversify revenue streams to mitigate the impacts of future crises. Future research future
research could examine further into the long-term ramifications of the pandemic on local businesses in
Mauritius and evaluate the effectiveness of government support measures to inform policy formulation and
business strategies. Overall, this study contributes valuable insights into the challenges faced by businesses
during the COVID-19 pandemic and the importance of resilience, adaptability, and government support in
navigating crises and fostering economic recovery.
Future Directions
While considerable efforts have been invested in addressing research method reliability and
construct precision, it is essential to acknowledge the limitations of this study. Notably, the sample size,
comprising 136 participants, while enabling a proficient use of diverse statistical analyses, may be
considered a limitation when contrasted with the extensive number of MSMEs in Mauritius. The low sample
size was mainly attributed due to the pandemic whereby there were challenges in recruiting participants
due to restrictions.
As suggested by Faber (2014), small sample sizes are more susceptible to sampling errors,
hindering the identification of statistically significant relationships. In essence, smaller samples carry a
higher risk of random variation, potentially leading to inaccurate results and impeding the detection of
meaningful patterns.
Therefore, future research endeavors should aim to expand the sample size, enabling a more
comprehensive analysis of the dynamics affecting local businesses in Mauritius. This approach will yield
more robust and generalizable findings, providing valuable insights for effective policy formulation and
business strategies in the post-pandemic landscape.
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Declaration of Interest
The authors declared that they have no known conflict of interest in the publication of this paper.
Funding Information
No funding information was provided by the authors
