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dc.titleCovid-19 Pandemic and SMEs' Performance in Latin America
dc.contributor.authorCerda, Maikol
dc.contributor.authorCervantes, David
dc.contributor.authorGertler, Paul
dc.contributor.authorHiggins, Sean
dc.contributor.authorMontoya, Ana María
dc.contributor.authorParrado, Eric
dc.contributor.authorSerrano, Carlos
dc.contributor.authorUndurraga, Raimundo
dc.contributor.authorYáñez-Pagans, Patricia
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageLatin America
dc.date.available2023-02-03T10:57:24
dc.date.issue2023-01-30T00:01:00
dc.description.abstractThe COVID-19 pandemic generated a large negative external shock to the global economy. Businesses worldwide were affected by economic, health, and mobility restrictions that impacted consumers ability to access goods and services and firms profitability and survival rates. In this paper, we study the economic performance of Latin American MSMEs during the pandemic using disaggregated and high-frequency administrative banking deposits and income data from Brazil, Chile, Colombia, Mexico, Paraguay, and Peru. We observe a sharp short-term decline in firm earnings due to the implementation of lockdowns during the second half of March 2020. We show this decline had a heterogeneous impact by economic sector, firm size, and transaction type (in-person vs. online). Focusing on financial technology adoption by studying the migration from in-person to online banking transactions, we find that MSMEs managed to recover revenues to pre-pandemic levels in early 2021 thanks to an increased share of online transactions and that industries facing higher physical exposure to the public (e.g., retailers) experienced a more considerable decline and a slower recovery.
dc.format.extent48
dc.identifier.doihttp://dx.doi.org/10.18235/0004720
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Covid-19-Pandemic-and-SMEs-Performance-in-Latin-America.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectSmall Business
dc.subjectEconomy
dc.subjectDigital Transformation
dc.subjectCoronavirus
dc.subjectPandemics
dc.subjectLockdown
dc.subject.jelcodeH81 - Governmental Loans • Loan Guarantees • Credits • Grants • Bailouts
dc.subject.jelcodeI18 - Government Policy • Regulation • Public Health
dc.subject.jelcodeL25 - Firm Performance: Size, Diversification, and Scope
dc.subject.jelcodeO12 - Microeconomic Analyses of Economic Development
dc.subject.keywordsCoronavirus;COVID-19;Latin America;Lockdowns;Smallbusinesses;Social distancing restrictions;SMEs Revenues;Mobility Restrictions
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01335
idb.operationRG-E1785
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