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...

Descripción completa

Detalles Bibliográficos
Autores principales: Thorgren, Sara, Williams, Trenton Alma
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