Authorities extended January's Lunar New Year holiday and ordered the closure of schools, factories, and railways to try and halt the spread of the outbreak, which has killed more than 2,500 people.
Some industries have since resumed operations but only around 3 in 10 small and medium-sized enterprises were back to work, industry ministry spokesman Tian Yulong said Monday.
Ongoing transport disruptions make it hard for workers to travel and has prevented the shipment of raw materials, he added. (READ: Locked-in Wuhan residents adapt to find food)
Officials pledged finance and aid for smaller enterprises on Monday, including preferential tax treatment for transport, catering, and tourism businesses.
Key industries dominated by larger firms appeared to be in stronger shape.
Cong Liang, an official at China's top economic planning agency, said the steel industry was operating at nearly 70% capacity while rail freight had almost returned to normal.
Small and medium-sized businesses account for around 60% of China's economy, and the crucial sector is reeling from the impact of the global public health crisis. (READ: Chinese restaurants starved for cash as coronavirus hits industry)
At least 6 in 10 small firms risked running out of cash to cover regular payments in the next two months, the Economic Daily state media outlet reported last week, citing a survey by a national representative body for small business.
But economists have forecast a significant hit to overall growth, with Moody's Analytics revising full-year gross domestic product projections down from 6.1% to 5.4% – the lowest rate in 3 decades. (READ: Novel coronavirus puts 'fragile' global recovery at risk – IMF to G20) – Rappler.com