Staying alive during an unfolding crisis: How SMEs ward off impending disaster

By S. Thorgren, T. Williams. Journal of Business Venturing Insights, 2020

213 citations recorded by the source corpus.

What measures are SMEs most likely to take in order to make ends meet in the face of a “black swan” external shock? That is the question we explore in this study, drawing upon unique data from 456 SMEs in the midst of an unfolding crisis. Our findings demonstrate how SMEs acted immediately by deferring investments, reducing labor costs, reducing expenses, and negotiating contracts and terms. Moreover, the data highlight how SMEs in an unfolding crisis are reluctant to commit to any action that will increase their debt-to-equity ratio. The findings suggest new questions to be explored in relation to actions during an unfolding crisis, post-crisis businesses, entrepreneurial failure, and entrepreneur/entrepreneurial team characteristics. Implications for policy and practice are provided.

Subfields: Accounting, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/c868bfb32bfdd42f8a3dc0512ff0f4a22fd14ffa

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Citations in the corpus

Identifying Digital Transformation Paths in the Business Model of SMEs during the COVID-19 Pandemic (2020, background): “More than half of firms believe that the COVID-19 pandemic will have a large negative impact and, therefore, firms must act quickly [31].”