IMPACT OF COVID-19 PANDEMIC ON LITHUANIAN SMALL AND MEDIUM-SIZED BUSINESSES

Abstract

Abstract

World Health Organization March 11, 2020 declared an outbreak of coronavirus infection as a pandemic. The Government of the Republic of Lithuania, in response to the emerging threats of the pandemic and in order to reduce the consequences of the COVID-19 pandemic in on March 16, 2020 announced the first quarantine. During the first quarantine, the procedure of public and private sector activities was established in Lithuania, and the activities of many companies were banned or restricted. Businesses in the country, whether micro, small, medium or very large, were forced to reduce or close down as the disease continued to rise, the number of people in self-isolation grew and the number of people in employment declined. SMEs are the predominant business structures, accounting for more than 99.8 percent in the EU. SMEs are a very important part of the country's economy and their development leads to sustainable and competitive growth of the country’s economy, which creates economic well-being for citizens and social security. The article defines the concept of SMEs and the classification of business, identifies its significance at the macroeconomic level and analyzes the situation of small and medium-sized enterprises before and during the COVID-19 pandemic.