POLICY INTERVENTIONS AND SURVIVAL OF SMALL AND MEDIUM-SIZED ENTERPRISES: THE MODERATING INFLUENCE OF BUSINESS INTERRUPTION INSURANCE

This study investigates the moderating influence of business interruption insurance on the relationship between policy interventions and the survival of small and medium-sized enterprises (SMEs). The study employs a structured questionnaire to collect data from 165 SMEs in both Kwara and Osun States in Nigeria. Test-to-test, validated scales from available literatures and Cronbach’s alpha test are performed to assess the validity and reliability of the measures used. Hierarchical regression method was employed in the analysis of the data. The results show that both business interruption insurance and policy interventions have positive and significant impact on survival of SMEs. Furthermore, the interaction of business interruption insurance on policy intervention and survival of SMEs is positive and significant. The study recommends for the need for government and other relevant stakeholders to consider business interruption insurance when designing intervention policies for pandemic related issues.