Entrepreneurial resilience during the Covid-19 pandemic: navigating survival, continuity and growth

Abstract

PurposeThis study aims to explore how small and medium-sized enterprises (SMEs) in Indonesia display resilience in response to the Covid-19 pandemic.Design/methodology/approachA qualitative research design was used, which involved semi-structured interviews on five creative industry-based businesses in Yogyakarta, Indonesia. A narrative inquiry approach was used to obtain an in-depth understanding of SMEs’ resilience. The data obtained were analyzed using thematic analysis via MaxQDA 2020.FindingsThe Covid-19 pandemic triggered the emergence of both new opportunities and new constraints for SMEs. These, in turn, significantly interrupt their business model. SMEs are found to navigate survival, continuity and growth by drawing from their resourcefulness and firm-level strategies to cope with the new opportunities and constraints.Research limitations/implicationsThis study was conducted qualitatively based on five SMEs in the creative industry in Indonesia. This limits the ability to compare the findings across different economic sectors.Practical implicationsSMEs facing emergent constraints may need to find new ways to recombine existing resources and simultaneously seek to innovate their business model. Business owners and entrepreneurs should adopt a positive mindset such as optimism, perseverance and efficacy, to cope with adversity. Growth-oriented SMEs may make use of a competitive mindset such as flexibility, speed and innovation, to spot and exploit opportunities that emerge from the crisis.Social implicationsSMEs’ resilience should be understood not only in terms of economic survival and continuity but, more deeply, about their social contribution to the localities where they operate.Originality/valueThis study illustrates the process of how adaptive resilience is adapted and executed by SMEs. It also contributes to entrepreneurial resilience and resourcefulness literature by explaining how entrepreneurs anticipate, respond to and leverage from the crisis.