Examining Socio-economic Conditions of Food SMEs Employees during the COVID-19 Pandemic in Hyderabad City, Sindh, Pakistan: An Empirical Study

Abstract

This study empirically examines the socio-economic conditions of employees working in food-related small and medium enterprises (SMEs) across Hyderabad City during the COVID-19 outbreak. Recognising that employees’ working categories and SMEs are unevenly distributed across the city, we initially employed purposive sampling by selecting food-related SMEs, including food franchises, restaurants, wholesale shops, bakeries, dairies, and grocery stores. Later, using simple random sampling across different city areas under smart lockdowns, we selected respondents with high, medium, and low salaries and wages, including salespersons, service personnel, market vendors, and vegetable and fruit sellers, among others, with varying employment statuses in different small and medium-sized enterprises (SMEs). For data collection, we conducted face-to-face interviews using a structured questionnaire. We applied the ordered-logit model and investigated a series of hypotheses. Our results suggest that the income of medium- and low-category employees, such as waiters, salespersons, cooks, cashiers, and security guards, decreased due to SME closures during lockdowns and an increased likelihood of unemployment. Additionally, social distancing, which was strictly maintained through smart lockdowns, had an adverse impact on the income of employees working in various small and medium-sized enterprises (SMEs), including international franchises, local restaurants, small markets, marts, and food companies. However, employees’ children did not drop out of school due to online classes, although their education suffered due to school closures.