Examining the connection between resourcefulness and resilience: Analysis of UK rural SME firm-level enterprise characteristics

Abstract

The ability of rural enterprises to withstand external shocks has been examined at regional and sectoral levels using extensive evidence bases. However, little is known of rural SMEs' resourcefulness and how this can affect their resilience. Rural SMEs have been exposed to severe operational disruptions in the face of recent internal and external shocks caused by turbulent events such as the COVID-19 pandemic. Analysis suggests SME resilience is not sector-wide and depends on enterprises' behaviour, entrepreneurial activity and ability to manage existing resources: a process generally known as ‘bricolage’. This paper examines the connection between resourcefulness of rural SMEs and their resilience capacity. Data from an extensive cross-sectional survey of rural SMEs in the UK was used in a multivariate analysis to create a typology of rural SMEs based on resourcefulness measured by behaviours such as social networking. Rural SME enterprise types are then compared against variables indicating resilient performance during the pandemic. Four rural SME enterprise types emerge from the analysis, each with different strategic behaviours and resilience performance attributes. The typology underscores the importance of resourcefulness in SME resilience and argues that resilience goes beyond regional or sectoral contexts and has to do with idiosyncratic features and individual characteristics. The analysis emphasises the importance of supporting and enhancing resourcefulness capabilities in resilience planning and provides a valuable baseline for further in-depth research on understanding rural SMEs' ability to be resilient in times of crisis.