Purpose–The prevalence of Covid-19 in the world has brought about considerable problems and affected small and medium-size firms\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\' resilience. We can refer to employment, flexibility, innovation, and activity change. The present study attempts to assess the effect of the Covid-19 on the resilience of small and medium-sized firms. In other words, this paper aims to figure out whether or not the Iraqi SME firms can tolerate the emerging epidemic of the Covid19. Design/Methodology/Approach– For the study, a questionnaire is designed with 28 questions (3 questions about covid-19 and 25 questions from Conner and Davidson’s questionnaire on resilience). Using simple random sampling, the questionnaire is distributed among 151 subjects from small and medium-size firms’ staff and managers. After analyzing the questionnaire\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'s reliability and validity, the hypothesis is assessed using the structural equation method. Findings– The obtained results from hypothesis testing show the positive and significant effect of the Covid-19 virus on small and medium-size firms\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\' resilience.

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