Business Survival Research Articles

Business Survival in Times of COVID-19: Empirical Evidence from Tourism Enterprises in Thailand

The impact of COVID-19 has been extensively explored, but little research has been conducted on its impact on business sector adaption. This study analyses business adaptation and business survival in the face of the COVID-19 pandemic by focusing on tourism enterprises in Thailand as a case study. Based on a survey of 316 tourism enterprises taken during the pandemic, the survey found that the pandemic resulted in the decline in revenues of most enterprises, and more than half of businesses tried to survive by reducing wages, reducing the number of branches and cutting back on store-opening hours. Using the Cox Proportional Hazard Model to predict length of business survival from the pandemic, it was found that most enterprises were unable to survive for more than 6 months (after the survey). Survival was found to be shorter in areas and business sectors that relied mainly on foreign tourists. Therefore, as for business implications, the traditional business model should be adapted to meet the needs of tourists in their new post-COVID lifestyles. In addition, tourism businesses need to focus on human resource management. Moreover, each type of tourism business needs to adapt its service model in different ways in order to meet the challenges of catering to a new normal.

Tacit Knowledge Transfer in Family Firms During Generational Succession

It is widely recognized that generational succession is one of the main problems to be faced by familyfirms with important implications for their long-term survival. The generational succession represents a critical phase in the life cycle of family firms, where in most cases the entrepreneur-founder is the pivot around which the company's success was built. In fact, empirical studies show that this phase is the most delicate, with a large percentage of companies facing serious difficulties in this process of change, so that they compromise the same "state of health" of the firm. Several aspects contribute to this process, for example more intangible aspects linked to the wealth of knowledge and skills of the entrepreneur, on which perhaps during the time the family firm has built its own competitive advantage. One of the major obstacles to be faced in the generational succession is inherent with the difficulty of preserving, developing and transferring knowledge from the entrepreneur to the successor. According to the Knowledge Management model of Nonaka and Takeuchi, knowledge is distinguished between explicit and tacit. While explicit knowledge is more easily transferable, tacitknowledge referring to the experience encounters greater difficulties in its transfer. Therefore, this contribution is proposed by analyzing as case studies three companies present on the Italian territory that are experiencing the generational transition, to understand and compare the tools (observation, participation, etc.) that the entrepreneur uses to transfer own tacit knowledge to the successor as fundamental elements for survival and development of businesses.

What side of town? How proximity to critical survival factors affects rural business longevity

AbstractThis research adds to the literature on locational determinants of business survival by focusing on an establishment's proximity to fixed assets. Using longitudinal, establishment‐level data from rural counties in the Midwestern United States, we developed a hazard model to estimate the likelihood of rural businesses surviving the Great Recession and the recovery that followed (2007–2017). Two critical survival factors are of principal interest: proximity to a pre‐automobile era downtown business district and proximity to a limited‐access highway ramp. The results suggest that highway proximity enhances survival for manufacturing, transportation, and wholesaling establishments, as does own‐industry agglomeration. For food, retail, and accommodation businesses, proximity to cultural anchor institutions enhances the probability of survival but competitive effects, including downtown proximity, reduce the likelihood of survival. On its own, proximity to a downtown was not associated with higher odds of business survival.

Perceptions of succession planning in family-owned businesses

ABSTRACT India has the third highest number of family-owned businesses (FoBs) globally, yet their intergenerational survival is at risk. The country faces a steep decline in female labor force participation and a “youth bulge,” with 54 percent of the population below the age of 25. The postpandemic era has necessitated the need for small and medium-sized enterprises to reinvent themselves to adapt to the fast-paced digital landscape. The perceptions of human capital and the inclusion of women in family business succession planning are often ignored. The aim of this study is to investigate the relationship of nonfamily employees and gender inclusivity on the survival of family-owned businesses. The authors propose a more inclusive culture in the FoB landscape as they undertake an ethnographic study to review literature between 2017 and 2022 while highlighting the impact of organizational culture to achieve gender egalitarianism and aid the United Nations Sustainable Development Goals.

Still Standing: Exploring Black Entrepreneurial Resilience Under Conditions of Gentrification

Utilizing an autoethnographic case study of Black small business owners in Fort Greene, Brooklyn, New York, I examine entrepreneurial resilience under conditions of gentrification. I conceptualize resilience as a process. I find that, for Black small business owners, resilience is a fluid concept that takes different forms with each form, or resilience capacity, having different determinants and characteristics. Black small business owners with absorptive resilience have been able to leverage protective factors - social networks, ownership of their commercial spaces, and not being dependent on the neighborhood for business - to withstand the effects of gentrification, and stay in place. Black small business owners manifesting opportunity adaptive resilience have stayed in place by adjusting their product/service offerings to the new environment. Those exhibiting necessity adaptive resilience have adapted reluctantly by relocating outside of the neighborhood. Resilience does not always equate with business survival or staying in place. Business owners also exhibit resilience by transforming, that is, by closing one entity and starting a new business either in the short-term, or, after a period of recovery.

Birthmark Effect: Founder Status and Firm Survival in Revolutionary Russia, 1861-1914

Status research typically assumes that status hierarchy is legitimate and stable, but this assumption may not hold during social revolutions which destabilize political, economic, and social institutions. We predict that, during revolutionary times, businesses whose founders are linked to a declining “power elite” group have higher failure rates than businesses without such a “status birthmark.” Moreover, this status birthmark effect is stronger for larger businesses whose resources and salient identity could become their liability. We tested these hypotheses by examining business survival in late Imperial Russia (1861-1914), one of the major revolutionary times in world history. Results show that firms whose founders were from the declining “power elites” (nobles, government officials, and military officers) were more likely to fail during this period than other status groups (e.g., merchants), and this risk was stronger for larger firms. Our study highlights how a once coveted status symbol may become a liability for businesses during radical institutional changes. Keywords: Status; Founder; Social Revolution; Institutional Change; Organizational History

Weathering an Unexpected Financial Shock: The Role of Federal Disaster Assistance on Household Finance and Business Survival

First, we document the impact of being hit by a devastating tornado on household finance and business survival. The tornado paths are random and cannot be predicted using risk information. Individuals in severely damaged census blocks have a small reduction in debt and no change in bill delinquency. The business establishment survival rate declines by 9%. Second, we provide insight on the role of federal disaster assistance, which includes direct cash assistance to disaster victims and grants to repair public infrastructure, in mitigating the shock. Individuals in severely damaged blocks have 30% less credit card debt post-disaster when disaster aid is available. Migration from damaged blocks increases. Credit-constrained victims have lower bill delinquency and increase consumption. Disaster assistance is a place-based policy and results in 9% more establishments and 14% more employees post-disaster in the average-damage neighborhood. These effects are concentrated among small nonmanufacturing establishments that rely on local demand.

The risk of death in newborn businesses during the first years in market

In this paper, we analysed how business age and mortality are related during the first years of life, and tested the different hypotheses proposed in the literature. For that, we used data on US business establishments, with 1-year resolution in the range of age of 0–5 years, in the period 1978–2019, published by the US Census Bureau. First, we explored the adaptation of classical techniques of survival analysis (the life table and Peto–Turnbull methods) to business survival analysis. Then, we considered nine parametric probabilistic models, most of them well known in reliability analysis and in the actuarial literature, with different shapes of the hazard function, that we fitted by maximum-likelihood method and compared with the Akaike information criterion. Our findings show that newborn firms seem to have a decreasing failure rate with age during the first 5 years in market, with the exception of the first months of some years in which the risk can rise.

The Implication, Current View and Approach in Facing Covid-19 Pandemic among Resort Entrepreneurs in Pangkor: A pilot study

The business resort owner is one of the groups hugely impacted by the Covid-19 pandemic. This article aims to determine the pandemic's implications for business resort owners and whether they have taken any new strategies or changes for the survival of their business. A total of seven business resort owners in Pulau Pangkor have been interviewed via focus group discussion as a pilot study. The paper also aims to discover their current view and approach to facing the pandemic to ensure their survival in business. Keywords: Covid-19, business resort owner, business, strategy eISSN: 2398-4287 © 2022. The Authors. Published for AMER ABRA CE-Bs by E-International Publishing House, Ltd., UK. This is an open-access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians/Africans/Arabians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia. DOI: https://doi.org/10.21834/ebpj.v7i20.3625

The managerial behavior of restaurant operators in a time of crisis

The COVID-19 pandemic is a crisis that poses a severe threat to business survival. However, a crisis was initially considered both a threat and an opportunity. It was argued that appropriate reactions to this pandemic should be regarded as having decisive effects on the future of businesses. For small businesses, however, it might be an opportunity to change their future. Therefore, from the perspective of small business management and focusing on the practical reactions of managers to crises, this research investigated the managerial behaviors of restaurant owners to neutralize threats and their relationship with their perceptions of the impact of the crisis and its consequences. Initially, managerial behaviors were divided into two groups: proactive and defensive. The empirical analysis revealed that owners’ positive perception of opportunities for changes leads to proactive managerial behaviors and business growth. However, a shortage of resources in small businesses might lead owners to be more defensive in perceiving the environment and choosing how to react. Based on these results, to increase the vitality of small restaurant businesses, it is argued that external support is required to reinforce the cycle of positive effects. With a basic set of information, it might be possible to get a better understanding about how small restaurants handle crises from the outside.

Recovery Strategies of Tourism Businesses in COVID-19 Pandemic in Indonesia

This paper explores compatible recovery strategies executed by the tourism business doers to survive their businesses due to the undeniable stagnation of the Covid-19 pandemic in Indonesia. The present study utilizes semi-structured online interviews to explore participants' activities, experiences, and strategies to maintain the tourism business during the COVID-19 pandemic. We garnered all data concerning the practical field experiences of participants by distributing google forms and collected further information from communication via telephone and WhatsApp chats. The research results showcased three strategies for the tourism business survival: improving hygiene and health standards, intensifying promotion, and operational cost control. Practically, this research will benefit tourism businesses to be more resilient in uncertain conditions in the future. The current study also contributes to the authority to resolve relevant policies incorporated with economic recovery related to the crisis due to the pandemic.

Exploring the Relationship between the Entrepreneurship Motive and Value Creation in Business Incubators

In this study, we aimed to explore whether, regardless of the reasons why entrepreneurs start their activity, either due to necessity or vocation, they positively value the capacity of business incubators as a mechanism to help create value, contributing to the economic and social sustainability and establishing a context that increases the chances of the success and survival of businesses. A questionnaire was developed and distributed to a representative sample of entrepreneurs residing in Spain. Structural equation analysis (SEM) was applied. The results confirm that business incubators create value in society regardless of the reasons why entrepreneurs start their activity. This work provides an opinion and a direct vision of how different entrepreneur profiles value the contribution of business incubators to the sustainability of businesses in their first stage.

Mediating effect of entrepreneurial social identity on the MSME-owners’ attitude and resilience amid COVID-19 crisis

ABSTRACT The COVID-19 pandemic has shaken most firms worldwide. The lockdown and community quarantine put micro-, small, and medium-sized enterprises (MSMEs)’ resilience to the test. With nonessential businesses closed and all consumers isolated, the survival of businesses remains at risk. As owners are challenged to survive, contradictory perspectives on the resiliency of small and medium-sized enterprises during adversity emerge. This study aims to determine the moderating effect of entrepreneurial social identity on the relationship between perceived attitude and resilience behavior of business owners. According to the findings, MSMEs’ perseverance led to a structure that maximizes technology and expands community network. The result shows MSMEs’ vitality and resilience during COVID-19. Evidently, the mediating effect of entrepreneurial social identity enhanced the resilience of the owners, which resulted in technology-based opportunities and re-creation of community-based enterprises. Indirectly, but significantly, the creativity and self-sufficiency of MSME owners contributes to the reduction of poverty and unemployment.

Impact of the COVID-19 pandemic on the domestic tourism industry of India: A study of the hotels and restaurants in the Delhi region

The covid-19 has hit badly the hotel, aviation, and the tourism. These sectors are largely dependent and interdependent. It is accepted globally that the covid-19 has given the biggest challenge trouble worldwide. Due to the covid-19 pandemic, there is uncertainty in the market crisis in the hotel, tourism, and aviation. There is a need to plan to recover from the market crisis of hotels, restaurants, and tourism post-covid-19 pandemic. The lockdown and the international closer of the boundaries of the country for the airlines have put the operation of the local hotel, and restaurant on zero. Deep planning and implementation are required by the government for the survival of the hospitality business. According to the WHO report the Covid-19 pandemic has affected 193 million people and the death rate is 4.5 million. According to the UNWTO figures, there is 70% decrease in tourism in 2020 as against 2019. The tourism-driven countries are finding it difficult to survive for their livelihood and to earn the bread. There is descriptive research on the hotels and the restaurants in the Delhi and NCR region on the kind of nature of business during the Covid-19 pandemic.

Management Strategy: Business Challenges and Working Ethos in the Era of Covid-19 Pandemic

The Covid-19 pandemic has shaken the business world which has brought down many retail businesses which indirectly impacted manufacturing companies. The retailers have done changes in serving customers; the phenomenon has shifted consumer behavior from the classic face-to-face way of purchasing to online purchases. Then has created new challenges in the business world and has an impact on business operations at large. The purposes of this research are to generate some fresh ideas to support the working ethos in the era of the Covid-19 Pandemic. The method used in research is a literature review, which describes the findings that new business situations have to be tamed by entrepreneurs and are unavoidable. The solution is an idea to set a custom work ethic; in terms of improving work ethic to proactive action, which includes several particular attitudes such as smart, respectful, honest, and assertive. Expectedly the work ethic will motivate creative strategies to overcome the business challenges of a new phenomenon. In the end, consistent implementation of work ethic is a must to support business survival.

The Entrepreneur and His Small Business: Is Financial Literacy Important?

The most appropriate survival strategy for small businesses is to pursue the growth objective. Our study seeks to investigate the presence or otherwise of a relationship between financial literacy and small business growth. Our findings reveal that entrepreneurs with a high level of financial literacy are more likely to succeed at growing their businesses when compared to entrepreneurs with a lower level of financial literacy. Hence, financial knowledge, financial behaviour and financial attitude are important assets for growing small businesses. We recommend a concentration of efforts on the human capital development of entrepreneurs to ensure the survival and growth of small businesses in Nigeria.

COVID-19: An Assessment of Creative Communication, Crisis Preparedness, and Resilience Building in Hospitality Business in Bali

Two years of COVID-19 pandemic have brought global consequences, especially to those operating in business. This paper examines how risk and crisis preparedness contributed to business survival and resilience in the hospitality sector in Bali, Indonesia, a market significantly dependent on international visitors. This qualitative research employing a phenomenological approach. Initial data were acquired from two months of observation in Bali from March 2020 until the end of May 2020. In addition to observation, semi structured interviews were also conducted with informants from four different hotels, aiming to uncover if the hotels embraced some strategies from the proactive pre-crisis planning to strategic implementations during the crisis. We did not include the after-crisis stage as the pandemic is still ongoing. The researchers validated findings through triangulating interviews with Balinese authorities. We found that although the current crisis disrupted hotel business, it also provided opportunities for creative communication, security strategies, and new connections with public sector health management. Further, in the early stages of crisis management preparedness and focused communication were vital for the level of survivability of the hotels. The study concluded that during a crisis, a successful organization management team does not follow a linear and organized process to lead their business through the stressful and chaotic phases. Based on this study, we learned that business managers who adapted to the situation with crisis preparation, combined with raised awareness of public health issues, and use of commercial strategies focused on local communities can successfully reduce threats.

Bumiputera Women Entrepreneurs' Psychological Characteristics: A Case Study from Penang, Malaysia

It is not wrong to say that entrepreneurship is one of the toughest jobs on the planet. This is because, this job required a person to be creative, proactive and resilient in order to expand and sustain their business, especially during uncertain situations like the Covid 19 pandemic. Additionally, up till now, the world has been shocked by the virus name Covid-19. It is not only severely impacted human health but also has far-reaching economic impacts around the world. The paralysis of productive operations is one of the collateral consequences of the virus's war, with major economic and social consequences around the world (Bapuji et al., 2020). Many well-known brands in a variety of industries are likely to go bankrupt as a result of the Covid-19 outbreak, as consumers stay at home and economies shut down. Besides that, the small business's survival was jeopardized in this tough situation. The crisis is radically altering the world and the worst in the entire history (Afshan et al., 2021). Keywords: Entrepreneur, Psychological characteristics, Proactive and Creative

Recovery Strategies of Tourism Businesses in the COVID-19 Pandemic in Indonesia

This paper explores compatible recovery strategies executed by the tourism business owners to survive their businesses due to the undeniable stagnation of the Covid-19 pandemic in Indonesia. The present study utilizes semi-structured online interviews to explore participants' activities, experiences, and strategies to maintain the tourism business during the COVID-19 pandemic. We garnered all data concerning the practical field experiences of participants by distributing google forms and collected further information from communication via telephone and WhatsApp. The research results showcased three strategies for the tourism business survival: improving hygiene and health standards, intensifying promotion, and operational cost control. Practically, this research will benefit tourism businesses to be more resilient in uncertain conditions in the future. The current study also contributes to the authority to resolve relevant policies incorporated with economic recovery related to the crisis due to the pandemic.

Strategic Foresight and Firm Performance: A Review of Literature

Firms are always looking for ways to improve their performance. The winning card can be held by those who seek to innovate, accomplish, and maintain performance. As a result, understanding and evaluating firm performance in a continually changing environment is crucial. As a result, management teams and scholars have always been interested in evaluating firm performance. Strategic foresight capability plays a vital role in generating and developing new ideas, as well as managing future issues, according to the belief that strategic foresight is critical for survival and success in business. Environmental scanning, strategic selection capability, network ties, and integrating capability are some of the relevant bits and pieces that can be used to construct a coherent image of the future that management should identify and pick. Firms typically scan the environment to comprehend external sources of change and, as a result, design effective actions that will secure or strengthen their future position. The operations in the Firm that deal with discovering an optimum option for change in the Firm's performance are referred to as strategic selection. Firms in business-to-business markets must design methods for interacting with both customers and suppliers inside the business network, and network relationships have major significance for them. Integrating capability is critical for disseminating, reproducing, and preserving information throughout the organization. The objective of the study was to look at the influence of strategic foresight on firm performance. A conceptual framework was created that can be used to evaluate strategic foresight based on strategic orientation. Strategic foresight and Firm performance are the two constructs.