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Small and medium enterprises (SMEs) are continuing to be impacted by the COVID-19 pandemic as it moves into its third year. The ‘dynamic COVID-zero’ policy adopted in China from August 2021 to the end of 2022 has inevitably put pressure on local SMEs, which makes the situation in Chinese SMEs not only different from the situation during the initial outbreak, but also unique in the world. In July 2022, an online follow-up questionnaire was conducted on SMEs in Sichuan Province to assess their performances, pressures, and requirements in this particular period of time and compare the results with our findings from 2020 to reveal the longer-term impacts of COVID-19. It was found that: (1) most SMEs had poorer revenue and profit performances; (2) while the pressure of increasing production cost and declining market demand has increased significantly, normal productions and operations are no longer as strongly disturbed; (3) SMEs require more financial support but less operating and employment subsidies; (4) and the SMEs’ overall confidence has recovered and the willingness to invest is rising. The situation in different sectors was also analysed and compared, with the results revealing problems within the tertiary industrial sector (wholesale and retail businesses).

Longer-term impacts of COVID-19 on SMEs: follow-up research in Sichuan Province, China