How did Swiss small and medium enterprises weather the Covid-19 pandemic ? ::evidence from survey data

The Covid-19 pandemic had unprecedented consequences on businesses in general and on small and medium enterprises in particular. The aim of this paper is to empirically study the impact of the Covid-19 sanitary crisis on Swiss SMEs two year after the onset of the pandemic. Using a sample of 149 SMEs operating in the French-speaking region of Switzerland, we find that revenue loss across the full sample averaged 14% in 2020 compared to 2019. Our results show that firm characteristics are not significant in explaining this turnover loss while business management strategies such as business restructuring, remote working, and prioritizing employee protection were significantly associated with revenue. Additionally, we quantify the impact of closure on SMEs and find that SMEs having reported to have closed partially or completely due to sanitary restrictions were seven times more impacted in terms of revenue loss compared to SMEs who did not cease their activity during the Covid-19 crisis. This paper contributes to our understanding of the magnitude of the Covid-19 sanitary crisis on SMEs and the sheds light on the importance of implementing efficient business management strategies in smaller businesses in times of crisis