Restructuring the Small and Medium Enterprises in response to COVID-19 effect on Emerging Economies

Fady Tawakol, Zayed University
WalaaEldeen Ibrahim, Zayed University

Document Type

Article

Source of Publication

Ilkogretim Online - Elementary Education Online

Publication Date

4-1-2020

Abstract

During the recent pandemic COVID-19, access to finance has been recognized as one of the most important impediments for the survival of small and medium enterprises. This article presents certain aspects of development in the regulatory and legal frameworks for SMEs exchanges in developing countries by offering long-term development strategy. It aims to study the opportunities that COVID-19 offers to find out how emerging economies can tailor their regulations tostimulate the market, and at the same time preserve market stability and investor protection considerations. It studies SMEs exchanges regulations and analyzes the constraints imposed by the current market regulations in a number of developing economies. A comparative SMEs market performance study was conducted by comparing the SMEs capital market performance before and during COVID-19. The data analysis showed an increase in SMEs market indexes during the pandemic that necessitates revising SMEs capital market regulations considering it as SMEs’ defensive weapon against any cash difficulties that most SMEs faced or will face during the current pandemic.The study proved that inadequate regulations underdetermine the ecosystem and result in a weak secondary market that critically affects the primary market meanwhile, regulatory attention must be paid not only to issuers and investors but to the entire market participants who constitute small puzzle pieces without which the real capital market reform picture cannot be seen. The article presents a financial sector development strategy,one size fits all regulations can never be fair, designing regulations is rather an art that needs focus and contemplation.

Volume

20

Issue

5

First Page

2975

Last Page

2989

Disciplines

Business

Keywords

Small and Medium Enterprises, Capital Market Regulations, SMEs, Exchange, COVID-19

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Indexed in Scopus

no

Open Access

yes

Open Access Type

Gold: This publication is openly available in an open access journal/series

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