Facing and responding to the COVID-19 threat – an empirical examination of MSMEs

The purpose of this study is to examine the effects and ways to confront the devastating effects of the COVID-19 crisis and develop a theoretical framework to facilitate understanding of these aspects from the perspective of micro, small and medium enterprises (MSMEs). In doing so, the fundamental insights of entrepreneurial self-efficacy, bricolage and improvisation are considered.

The study draws on data from 56 business owners-managers operating in eight different nations and representing three geographical regions; the data were gathered through an online questionnaire.

Various differences in responses from participants operating in the featured geographical settings were revealed. For instance, whereas a higher percentage of South American participants acknowledged financial impacts, they and their European counterparts were also more engaged.

The study provides various original and valuable elements. First, by gathering data from business owners-managers operating in different countries and geographical regions, it provides an international perspective concerning ways in which business operators confront an extreme event. Second, and related to the previous point, the study focusses on a business group (MSMEs), which is fundamental for many nations’ economies. Moreover, the experiences of MSMEs could be timely and insightful to industry and business stakeholders. Third, the proposed theoretical framework highlights various emerging dimensions associated with adaptation and responsiveness, with both theoretical and practical implications.