Cargando…
Staying alive during an unfolding crisis: How SMEs ward off impending disaster
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 deferr...
Autores principales: | , |
---|---|
Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Published by Elsevier Inc.
2020
|
Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7382927/ http://dx.doi.org/10.1016/j.jbvi.2020.e00187 |
_version_ | 1783563346116608000 |
---|---|
author | Thorgren, Sara Williams, Trenton Alma |
author_facet | Thorgren, Sara Williams, Trenton Alma |
author_sort | Thorgren, Sara |
collection | PubMed |
description | 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. |
format | Online Article Text |
id | pubmed-7382927 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2020 |
publisher | Published by Elsevier Inc. |
record_format | MEDLINE/PubMed |
spelling | pubmed-73829272020-07-28 Staying alive during an unfolding crisis: How SMEs ward off impending disaster Thorgren, Sara Williams, Trenton Alma Journal of Business Venturing Insights Article 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. Published by Elsevier Inc. 2020-11 2020-07-26 /pmc/articles/PMC7382927/ http://dx.doi.org/10.1016/j.jbvi.2020.e00187 Text en © 2020 Published by Elsevier Inc. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active. |
spellingShingle | Article Thorgren, Sara Williams, Trenton Alma Staying alive during an unfolding crisis: How SMEs ward off impending disaster |
title | Staying alive during an unfolding crisis: How SMEs ward off impending disaster |
title_full | Staying alive during an unfolding crisis: How SMEs ward off impending disaster |
title_fullStr | Staying alive during an unfolding crisis: How SMEs ward off impending disaster |
title_full_unstemmed | Staying alive during an unfolding crisis: How SMEs ward off impending disaster |
title_short | Staying alive during an unfolding crisis: How SMEs ward off impending disaster |
title_sort | staying alive during an unfolding crisis: how smes ward off impending disaster |
topic | Article |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7382927/ http://dx.doi.org/10.1016/j.jbvi.2020.e00187 |
work_keys_str_mv | AT thorgrensara stayingaliveduringanunfoldingcrisishowsmeswardoffimpendingdisaster AT williamstrentonalma stayingaliveduringanunfoldingcrisishowsmeswardoffimpendingdisaster |