Macroeconomic lockdown effects of COVID-19 on small business in China: empirical insights from SEM technique

The coronavirus (COVID-19) outbreak in the China has exposed small- and medium-sized enterprises (SMEs) to a variety of challenges, some of which are potentially life-threatening to their sustainability. Therefore, this study aims to investigate the macroeconomic lockdown effects of COVID-19 on small business in China. A survey questionnaire with 313 participants was used to collect the data. In this study, the SEM technique was used to analyse model. The data have been gathered for the study from the managers and employees of Chinese SMEs. The findings of the study show that COVID-19 has a significant negative impact on financial performance, operational performance, profitability, access to finance, and customer satisfaction. According to the study's findings, external support aids have a greater impact on SMEs' ability to survive and thrive through innovation than on their actual performance. The findings of this study have a number of important practical consequences for small- and medium-sized business owners, governments, and policymakers.