Financial crisis management in SMEs during the pandemic: Elazığ example

SMEs (small and medium-sized enterprises) constitute important dynamics in terms of socio-economic development in country economies. Small and medium-sized businesses are affected by various crises that affect both nationally and globally. The Covid-19 pandemic, which started in China in 2020 and quickly affected the world, has been one of the crises that has negatively affected businesses in recent years. It is stated that the Covid-19 pandemic has a greater impact on businesses and country economies compared to previous epidemics. The effects of the pandemic, both socially and economically, have been a matter of curiosity for researchers and have prompted research to determine and reveal the impact dimensions. In our study conducted for this purpose, data was collected using face-to-face interview method with 20 SME managers operating in the service sector in Elazığ Province. As a result of the interviews, it has been determined that the impact of the Covid-19 pandemic on businesses operating in the service sector varies depending on the type of activity and business models of the businesses, and that businesses operating in the cleaning, health and pharmaceutical sectors have overcome the process more easily than other businesses. The reason for this situation has been determined as the cash position of these businesses, stocks, trade receivables and debts, revenues, equity structures of the businesses, cost items, their ability to manage the pandemic process and their tendency to save, as well as sectoral activity advantages.