Effect of Insurance on The Development of Small And Medium Enterprises Amid Covid-19 In Lagos State, Nigeria

Abstract

Unachukwu, J. C, Oyewole, Olabode M, Ojo, Aderonke J

The study examines the effect of insurance on the development of small and medium enterprises amid covid19. The study was carried out in Lagos State, Nigeria. This location has been chosen to be a state that has the highest number of SMEs in Nigeria. A descriptive design was used to determine and describe the factors affecting risk management by SMEs and the related insurance policies to mitigate risk. A simple random sampling technique was employed to select 252 SMEs as a sample size for the study. Data were analyzed with the aid of descriptive and inferential statistics. The study reveals that most of the SMEs do not have insurance policies for their businesses, and the level of information on insurance is very low. Furthermore, the finding shows that COVID-19 is a major risk SMEs are battling with, while non-response, non- payment of claims and delay claim payment are the major factors preventing SMEs from adopting insurance as a risk management strategy. Subsequently, it was recommended that the insurance industry should organize seminars, workshops, and conferences in conjunction with SMEDAN and MAN on insurance literacy, in all local governments for SME operators/ managers.

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