Abstract
Using a mixed method approach, this study investigates the challenges that the COVID-19 pandemic has posed for entrepreneurs and the strategies that organizations can adopt to make a turnaround towards survival and growth. Empirical analysis is done on the factors which have affected smaller firms during economic slowdowns in the past, and policies and plans adopted by firms to overcome the barriers. Factors such as lockdown, remote working, digital marketing and digitization were accounted through qualitative research. In the empirical analysis section, descriptive statistics and confirmatory factor analysis have been used. In the qualitative section, thematic analysis and hierarchy charts were made with the help of NVivo software. The prime barriers which affected the firms were organizational readiness, infrastructural support by government, technological inadequacy and financial crises. The main strategies emphasized by founders to overcome the barriers of organizational readiness and financial crunch were marketing, strategic networking and product and services, and for technological ineptness was digitization.
Highlights
After the spread of pandemic, the organizations did not get enough time to prepare for the unprecedented disruption which would follow
Mixed method approach was used for this study as economic recessions have been faced by various countries in the past, so factors affecting the barriers and strategies were derived from the literature and the extracted factors were subjected to empirical analysis
A set of factors have been proposed as the prime barriers faced by smaller MSMEs during the economic slowdown along with suitable strategies to overcome each of the salient barriers
Summary
After the spread of pandemic, the organizations did not get enough time to prepare for the unprecedented disruption which would follow. The situation is more critical for small firms because of their limited financial resources (Latham, 2009) The capacity of these businesses to pay their employees has shrunk severely due to major supply chain disruptions, especially for manufacturers and providers of non-essential services. The smaller firms gain relevance in modern economies as they provide an increased share of employment and employ personnel with lower educational qualifications, lesser skills and abilities and from greater age brackets (Headd, 2010). They act as stimulants for regional trade and aid in technology transfer (Bourletidies & Triantafylopollous, 2014). It has been observed that SMEs that flourish during a recession have a robust and long-term capital structure, better proximity to customers and a dynamic approach to strategy (Beaver & Ross, 2000)
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