Question 4

All governments must try their best to prevent protracted recessions becoming extended

depressions. Relatedly, policymakers need to ensure that temporary short-term liquidity

problems do not become full-blown solvency crises. Measures are needed to change

contracts and other obligations to enable firms to better cope with involuntary suspension of

business operations. Much more is needed to address specific challenges facing small

family businesses.

Discuss THREE (3) ways the government can continue helping small and medium

enterprises (SMEs) to ensure SMEs can stay afloat post Covid-19. (14 Marks)