Financial Performance of SMEs in Kota Bharu, Kelantan During the COVID-19 Pandemic

Abstract

The study identified the financial performance of Small and Medium Enterprises (SMEs) in Kota Bharu, Kelantan, specifically during the coronavirus disease (COVID-19) outbreak. Financial performance is a new but popular topic in this globalisation era, particularly during the pandemic. The study examined four factors: technology cost, bank credit, employee cost, and economic, focusing on SMEs in Kota Bharu, Kelantan. The main objective is to identify vital factors affecting SMEs’ financial performance in Kota Bharu, Kelantan and the relationship between technology cost, bank credit, employee cost, and economic towards the financial performance. Significantly, the study benefits SME entrepreneurs and upcoming entrepreneurs to identify the factors affecting the financial performance of SMEs. The Trade-Off Theory (TOT) was used to explain the study model. Besides, simple random sampling was used with 66 valid responses from SMEs in Kota Bharu, Kelantan tested and analysed using Google Form questionnaires.