JobKeeper and the Recovery of Australian Small and Medium-Sized Enterprises in the age of COVID-19
In response to the financial impact of COVID-19 on small and medium-sized enterprises (SMEs) the Australian government has implemented stimulus measures including JobKeeper, a wage subsidy. SMEs are heterogeneous and are major contributors to employment and economic growth. However, SMEs performance may be influenced by incentives and constraints, within or outside their control and therefore may vary their decision making based on their individual circumstances and objectives. Wage subsidies provide vital cash flow immediately but longer-term benefits are uncertain. This research aims to assess the impacts of the JobKeeper intervention on Australian SMEs based on choices and trade-offs that exist. The outcomes may inform policy makers or other stakeholders the success of JobKeeper and intended or unintended consequences of intervention.