SME’s in the age of covid-19 : Algeria case study

Drareni, Sara; Talbi, Badereddine; Benlaib, Boubker

Revue d'économie et de statistique appliquée
Volume 22, Numéro 2, Pages 131-140
2025-12-09

Sme’s In The Age Of Covid-19 : Algeria Case Study

Authors : Drareni Sara . Talbi Badereddine . Benlaib Boubker .

Abstract

This study investigates the impact of the covid-19 pandemic on small and medium-sized enterprises SMEs in Algeria by comparing two key periods: before and after the outbreak. Utilizing a stock-flow model calibrates with empirical data from 2012 to 2023, the analysis quantifies how entry, exist, and cumulative government financial support influenced the SME population dynamics during these phases. The finding reveal that government interventions significantly mitigate SME closures amid the crisis, although new business entries experienced a slowdown. Pre-covid periods demonstrated stable SME growth while POST-COVID periods showed increased volatility, elevated exists, and reduced entries despite increased financial support. These results highlight vulnerability of SMEs to economic shocks and underscore the critical role of timely and sustained government support foster recovery and resilience in this vital sector.