Environmental Uncertainity and Performance of SME's : A Case of Covid-19 Pandemic in Kapchorwa District
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Date
2023-09-29
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Uganda Christian University
Abstract
The study sought to establish the effect of environmental uncertainty on performance of SMEs during covid-19 pandemic in Kapchorwa district. The study specifically addressed the effects of environmental dynamism, environmental complexity and environmental munificence on performance of SMEs during COVID-19 pandemic. The study was based on a cross sectional research design where quantitative research approach was used. A sample size of 64 respondents who were owners and managers of the businesses were surveyed. Based on correlation analysis, it was established that all the dimensions of environmental uncertainty were positively related to performance of SMEs. The specific maginitude of association for the different dimensions of environmental uncertainty included environmental dynamism (r =.980), environmental complexity (r =.957) and environmental munificence (r =.985). The findings indicated a very significant correlation between environmental uncertainty and performance of SMEs (r =.985). From the findings of the study, it recommended that businesses to become agile and flexible in order to deal with the environmental uncertainty. This will help them to turn the uncertainty/instability into a fortune through innovations. Environmental uncertainty still proves to be one of the best opportunities for SMEs to grow and generate major profits however, its greater lowers firm performance. It further recommended that environmental dynamism, complexity, and munificence are important theoretical dimensions. Finally, the research recommended that there is need to do a comparative study on performance of SMEs under the effect of environmental uncertainty during the period of the COVID-19 pandemic and the pre COVID-19 pandemic period.
Key words: Environmental uncertainty, environmental dynamism, environmental complexity, environmental munificence, SME performance.
Description
Masters dissertation.