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Purnomo, Boyke Rudy; Adiguna, Rocky; Widodo, Widodo; Suyatna, Hempri; Nusantoro, Bangun Prajanto
2021 Journal of Entrepreneurship in Emerging Economies
doi: 10.1108/jeee-07-2020-0270
This 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.
MacGregor Pelikanova, Radka; Cvik, Eva Daniela; MacGregor, Robert Kenyon
2021 Journal of Entrepreneurship in Emerging Economies
doi: 10.1108/jeee-07-2020-0245
Emerging economies have to address positive challenges such as sustainability, digitalization, entrepreneurial readiness and planning and behavioral strategies and negative challenges, such as corruption and bureaucracy. The COVID-19 pandemic hit all economies and arguably made hotel businesses that are from less typical emerging economies, such as the Czech Small and medium-sized enterprises (SMEs), to deal with similar challenges to that of their counterparts from typical emerging economies. How do Czech hotel SMEs address the COVID-19 challenges and what sustainability message can be extracted from that with the relevance for not only businesses from emerging economies? The purpose of this paper is to explore how Czech hotel SMEs address the COVID-19 challenges and what sustainability.Design/methodology/approachA consolidated parsing of the literature, legislative and analytical framework, along with an investigative case study of 11 Czech hotel SMEs was performed, based on the questionnaire survey and semi-structured in-depth direct interviews. The holistic thematic analysis processed this fresh data and allowed Socratic questioning and glossing while addressing both research questions.FindingsThe performed case study reveals that typical challenges faced by entrepreneurs in emerging economies became, via COVID-19, universal challenges, these challenges are a valuable impulse for digitalization and changes of entrepreneurial strategies, but not so much for sustainability, and the omnipresent negative impact of corruption and bureaucracy.Originality/valueThis paper presents a pioneering study regarding the addressing COVID-19 and sustainability concerns by SMEs in a less typical emerging economy and offering a universal, partially comparative and sadly not so sustainable, message which is not just limited to emerging economies.
2021 Journal of Entrepreneurship in Emerging Economies
doi: 10.1108/jeee-07-2020-0247
This study aims to focus on implementing frugal innovation and its principles by social entrepreneurs to face the challenges during the COVID-19 pandemic. The research paper discusses the case of an Indian social entrepreneur who works for menstrual health and hygiene of unprivileged and rural women in India. The social entrepreneur’s constant endeavor is to create an ecosystem to ensure rural women’s economic and social upliftment through financial inclusion and livelihood training. When faced with the COVID-19 pandemic, the social entrepreneur re-purposed the manufacturing process to produce masks that were the need of the hour.Design/methodology/approachThe research paper is qualitative and follows an inductive case study approach. The underlying principles of frugal innovation are established through content analysis of the social entrepreneur’s interviews and her team members.FindingsThe study discusses how adversity can be an opportunity for social entrepreneurs by implementing frugal innovation principles, i.e. re-use, re-purpose, re-combine and rapidity, in times of crisis.Research limitations/implicationsOne of the major limitations of this study is that it is based on a single case study, as, in the current scenario, this case appeared to be the most suitable one. There is no way to generalize the assumptions of this model. Researchers will have to study the phenomena of frugal innovation in adversity across multiple cases in the future. Also, the study is based on a single emerging economy, i.e. India. Further research may be carried out with such cases from other countries.Practical implicationsThe proposition of this research paper will help new and established social entrepreneurs understand that the four principles of frugal innovation and their practical application by a social entrepreneur. This will act as a guiding light for the present and future entrepreneurs regarding how one can respond to a crisis. This will also help advance our understanding of the distinct ways in which social entrepreneurs’ activities can help society in times of crisis. The findings of this research paper provide timely implications for social entrepreneurs. To respond efficiently to various crises, it is important to consider its effect on social entrepreneurship.Social implicationsThe research paper shows that the social enterprise has implemented frugal innovation principles to manufacture the COVID-19 protection items supplied through existing supply chain networks. Also, a social entrepreneur is not intimidated by the sudden changes in the business environment; instead, they look at the situation as an opportunity to do something new. They are always willing to take the risk to innovate a solution that will address people’s problems. frugal innovation, due to its highly collaborative nature and its ability to make the most from limited resources, is the only way social entrepreneurs can create an inclusive, secure and sustainable future.Originality/valueThere are several challenges in social entrepreneurship, especially in emerging economies like India. During the pandemic, availability of resources was the major challenge, due to which social entrepreneurs had to find solutions through frugal innovation. This paper provides the practical application of the four principles of frugal innovation implemented by a social enterprise to manufacture and supply Covid protection items. It also presents the practical and managerial implications of the principles of frugal innovation by social entrepreneurs in low resource settings.
Čadil, Jan; Beránek, Marek; Kovář, Vladimír
2021 Journal of Entrepreneurship in Emerging Economies
doi: 10.1108/jeee-10-2020-0374
The COVID-19 pandemic and subsequent efforts to contain it have started economic downturn that may even surpass the global financial crisis (GFC). The purpose of this study is to uncover the features of enterprises’ resilience during and after an external shock such as the GFC might be helpful in predicting the shock impact on enterprises and setting proper policy measures for the upcoming COVID-19 crisis.Design/methodology/approachThe authors analysed the impact of the GFC on the entrepreneurial population in/of the Czech Republic using marginal effects method on a large random sample of 4,478 enterprises. In this analysis, the authors defined two groups of enterprises – “winners” and “losers” – based on the company’s dissolution and performance indicators.FindingsThe GFC struck the enterprise population asymmetrically in terms of the enterprises’ characteristics but also in terms of time. Micro and small size companies are the most vulnerable to external shocks such as the GFC. Technological level plays an important role in the recovery phase, especially in the case of manufacturing micro enterprises.Research limitations/implicationsAlthough there are differences between the GFC and the COVID-19 crisis, the GFC was the only comparable shock in modern history in its global nature, depth and unpredicted occurrence. It can be expected that the impact on enterprises can be partly similar.Practical implicationsGovernment support of micro size companies should be the priority in the upcoming COVID-19 crisis. Supporting the innovation and technology progress might accelerate the recovery phase after the crisis especially in micro companies as well.Originality/valueThis paper presents interesting insights into the impact of external shocks such as the GFC or COVID-19 on enterprises. It uncovers typical features of “winners” or “losers” of such shocks.
Salam, Muhammad Talha; Imtiaz, Hamza; Burhan, Muhammad
2021 Journal of Entrepreneurship in Emerging Economies
doi: 10.1108/jeee-07-2020-0274
During the COVID-19 crisis, diversified attitudes and behaviors of structural equation modeling (SME) retailers were observed in using social media marketing that could have helped mitigate the adverse effects of this crisis on businesses. This paper aims to present a thorough investigation of these perceptions and limited acceptance of social media marketing among SME retailers in a developing country during a crisis.Design/methodology/approachThe investigation was designed using a mixed-method design. A qualitative investigation, as the first part, explored SME retailers’ perceptions of the use of social media marketing when they were faced with mandatory lockdown that stifled their business activity. The insights from qualitative study and literature helped devise the second part of the study, a quantitative study using the technology acceptance model (TAM). Analysis of responses from a sample of SME retailers (n = 149) was done using SEM in this study.FindingsIn the qualitative study, SME retailers were found to have a varying outlook toward social media marketing. Some ventured into social media marketing while others were impeded by their limited understanding. The second (quantitative) study showed the general applicability of TAM such that perceived ease of use through perceived usefulness influenced SME retailers’ attitudes toward the usage of social media marketing during the COVID-19 crisis. An important finding in both studies was that business owners’ education level influenced their perceptions of social media marketing.Research limitations/implicationsThe investigation, albeit a comprehensive one, was conducted in a particular market and for SME retailers. This opens avenues for conducting similar studies in other segments of entrepreneurs to generate insights based on comparative analysis across segments and scenarios.Originality/valueLimited or no marketing in the physical marketplace amid lockdown meant almost an existential crisis for entrepreneurs, especially SME retailers, in developing countries during the COVID-19 crisis. While technology acceptance by SME retailers has been discussed in the literature, there are limited discourses on technology acceptance among entrepreneurs and SME retailers during a crisis. These findings from the COVID-19 crisis explicate the possibilities and limitations of technology usage as a means to mitigate challenges faced by entrepreneurs during a crisis.
Croteau, Martin; Grant, Kenneth A.; Rojas, Claudio; Abdelhamid, Hadeer
2021 Journal of Entrepreneurship in Emerging Economies
doi: 10.1108/jeee-07-2020-0273
Canada has lagged in access to capital for high-potential, growth-oriented new ventures, but has made considerable strides in the past decade. This study aims to examine the evolving state of the market for risk capital in Canada during the COVID-19 pandemic, providing a critical assessment of government policy from the perspective of angel investors and diverse communities of entrepreneurs.Design/methodology/approachA thematic analysis was conducted of seven COVID-19 roundtable discussions hosted by the National Angel Capital Organization that included 51 global and national-level business and political leaders. The analysis extracted the most salient details from the discussions, distilling them into timely and actionable insights for policymakers.FindingsThe analysis suggests that the government’s economic policy response to the COVID-19 crisis fails to address the sudden liquidity problems faced by new ventures. Entrepreneurs and angel investors have remained resilient, rallied as a community and demonstrated an extraordinary level of trust. Traditionally under-represented communities of entrepreneurs are more affected by the crisis than others.Practical implicationsThe findings and recommendations are of relevance to policymakers interested in post-COVID-19 economic policies to address the unique challenges faced by start-ups and ensure their full contribution to economic recovery.Originality/valueThe paper presents several policy recommendations and proposes a novel framework to describe the impacts of the pandemic on different categories of start-ups.
Dvorak, Jiri; Komarkova, Lenka; Stehlik, Lukas
2021 Journal of Entrepreneurship in Emerging Economies
doi: 10.1108/jeee-07-2020-0260
The market for goods and services is a continually changing environment influenced by many internal and external factors. The majority of economies in the World were deeply hit by the coronavirus epidemic (COVID-19) in the first half of 2020. This paper aims to contribute to the understanding of the role of a crisis, COVID-19 in this case, in moderating the market environment and its ability to accelerate or slow down ongoing processes.Design/methodology/approachA questionnaire survey was used to obtain the opinions of 100 customers and 100 local retailers on the digitisation of the shopping process in a medium-sized Czech town. After the first wave of crisis faded away, the respondents reflected on their opinions before, during and after the crisis. The data were processed using linear mixed models respecting repeated measures.FindingsThe crisis seems to have shifted the interest of both groups towards e-commerce but it did not change the disproportion in opinions between them. The interest of customers was significantly higher, even after the crisis.Research limitations/implicationsThe credibility of the results is limited mainly by the one-time gathering of the data after the crisis. However, the results indicate a persistent challenge to which small retailers are exposed.Originality/valueThe originality of the results comes from the specific situation brought about by the COVID-19 crisis and the structure of respondents, enabling us to catch an immediate shift of opinions caused by the crisis and to compare the changes in both groups of respondents.
Durst, Susanne; Palacios Acuache, Mariano Martin Genaro; Bruns, Guido
2021 Journal of Entrepreneurship in Emerging Economies
doi: 10.1108/jeee-06-2020-0201
Crises of any type have become an integral part of business activity and responses to them could make the difference between survival and failure. This applies in particular to small and medium-sized enterprises (SMEs). Taking the coronavirus (COVID-19) pandemic as a starting point, this study aims to investigate how Peruvian SMEs have been coping with COVID-19 so far. Based on that a conceptual framework is proposed which highlights the practice of SMEs trying to deal with a new type of crisis.Design/methodology/approachThe study is based on an exploratory qualitative research design involving 25 semi-structured interviews conducted in Peruvian SMEs.FindingsThe findings demonstrate how the Peruvian firms studied to adapt to the new situation and initiate responses to increasing the chance of survival. Furthermore, the role of the companies’ decision-makers, as well as the role of crisis management and other related approaches in the companies are shown.Research limitations/implicationsThe paper expands the underdeveloped body of knowledge regarding crisis management in Latin America in general and crisis management in SMEs by providing insight into how Peruvian SMEs perceive and adapt to the COVID-19 pandemic.Practical implicationsThe findings presented in this paper have implications for both managers and managerial staff of SMEs but also for the people in charge of the curricula at universities and other teaching-focused institutes.Originality/valueTo the authors’ knowledge, this is the first empirical study of crisis management on the impacts of COVID-19 with a dedicated focus on SMEs from Latin America. It provides fresh insight into current reactions to the Pandemic.
Manyati, Tarisai Kudakwashe; Mutsau, Morgen
2021 Journal of Entrepreneurship in Emerging Economies
doi: 10.1108/jeee-07-2020-0236
The sustainable skills that informal manufacturers use in volatile times remain poorly understood. This study explored the skills that the informal manufacturers used to navigate the uncertain business environment during the COVID-19 pandemic.Design/methodology/approachA total of 27 telephone interviews were conducted with informal entrepreneurs who were manufacturers of agricultural machinery at Mbare Magaba and Gaza home industry in Harare, Zimbabwe. Purposive and snow ball sampling were used to identify information rich sources. The authors used thematic analysis in identifying recurrent themes from this study.FindingsThe study results show that business agility motivated most informal manufacturers to restructure their business to sustain their operations. With the closure of formal companies, the informal manufacturers adopted slowing and narrowing loops through purchasing broken down agricultural machines for repairs or remanufacturing of durable machines for their low-income customer base. Most young and formally trained manufacturers adopted a prospector strategic behaviour as they used digital platforms to network with business associates for supplies, gathering market intelligence, making and receiving electronic payments and establishing virtual distant markets whilst the older manufacturers resorted mostly to a defender strategic behaviour of engaging their usual customers for repair jobs and a few referrals.Originality/valueThis study offers unique insights with respect to skills required for the sustainable and strategic management of small and medium enterprises during times of crisis.
Villaseca, David; Navío-Marco, Julio; Gimeno, Ricardo
2021 Journal of Entrepreneurship in Emerging Economies
doi: 10.1108/jeee-06-2020-0172
The purpose of this paper is to understand women’s approaches to acquiring financial and other resources is essential for closing the entrepreneurship gender gap. In nearly 40% of economies, women’s early-stage entrepreneurial activity is half or less than half of that of men’s.Design/methodology/approachEven when there is extensive literature on female entrepreneurs, the authors review the findings through a Coronavirus Disease 2019 (COVID-1)9 crisis lens, trying to find new perspectives and solutions. With the approach of a systematic review of 4,520 publications on financing topics related to female entrepreneurs, various sources of financing available to female entrepreneurs are considered: bootstrapping, banks, business angels, venture capital and crowdfunding.FindingsIdentifying potential gender bias both on the supply and the demand side of financing, this research highlights new directions in encouraging female entrepreneurship and gives guidelines to public organisations on how to foster advanced forms of financing for female entrepreneurs in COVID-19 times.Social implicationsThe COVID-19 pandemic has posed an unprecedented challenge for economies and companies. Female entrepreneurs are the ones who have been hit harder, as they overcome pre-existing barriers, such as lack of access to finance, lack of networks and mentors and gendered priorities, among others. Without ensuring gender policies to counter these incremental negative effects, the authors face the risk of widening the gender gap.Originality/valueRegarding previous systematic reviews of literature, this paper focusses on a specific challenge, how women entrepreneurs finance their activity, with a double vision: supply and demand of money.
Portuguez Castro, May; Gómez Zermeño, Marcela Georgina
2021 Journal of Entrepreneurship in Emerging Economies
doi: 10.1108/jeee-07-2020-0246
The COVID-19 pandemic has had an uncertain impact on the global economy, especially for entrepreneurs and small and medium-sized enterprises that have suffered significant consequences. However, resilience has emerged as an entrepreneurial skill that allows companies to adapt and grow stronger in the face of challenges. Therefore, this paper conducted a literature review to identify the factors that comprise resilience to strengthen training programs for entrepreneurial skills. This study aims to lead to future empirical studies that will provide more understanding and equip professionals with the skills to adapt to crises.Design/methodology/approachA systematic literature review was performed, analyzing studies related to entrepreneurship, resilience and crises. In total, 30 empirical studies were analyzed to determine the facts of the crises, the methodologies used and the actions taken to address them.FindingsThe review identified resilience factors such as attitudes adopted toward the crisis, the characteristics of the business and the entrepreneur, the relationships with institutions, human and social capital and strategic management. These factors can be considered in training programs for resilient entrepreneurs and by the different actors in the entrepreneurial ecosystem, including the universities and public policymakers, who support them.Originality/valueThis study provides a literature review that focuses on identifying the resilience factors of entrepreneurs who confronted past crises to know how to apply them to overcome the current situation and contribute to post-COVID-19 entrepreneurship. This paper hopes that the findings motivate others to conduct further empirical studies on entrepreneurship and resilience in times of crisis, especially in developing countries and emerging economies.
2021 Journal of Entrepreneurship in Emerging Economies
doi: 10.1108/jeee-06-2020-0163
Coronavirus (Covid-19) is a pandemic that not only has caused significant havoc around the world but also presents some important opportunities for entrepreneurs to be innovative in the marketplace. The purpose of this paper is to detail in more depth how entrepreneurs have been affected by the crisis by focussing on specific types of entrepreneurship in terms of cultural, lifestyle and social change.Design/methodology/approachA review of the existing literature on Covid-19 and crisis management is conducted that highlights the effect of the pandemic on entrepreneurs. This approach enables an integration of the existing research on resilience in terms of how entrepreneurs adapt and pivot their business models in response to change. Thereby enabling a contemporary view about the ways entrepreneurs can contribute to societal well-being in times of huge economic and social upheaval.FindingsWhile entrepreneurs by nature are resilient, the Covid-19 crisis in terms of its magnitude and length has led to specific challenges faced by entrepreneurs in adapting to the new environment. These challenges can be related to the way entrepreneurs respond to uncertainty by being flexible but also through the support of an entrepreneurial ecosystem environment.Originality/valueDue to the Covid-19 crisis being an ongoing and recent phenomenon, this paper is amongst the first to focus specifically on how cultural, lifestyle and social attributes of society have changed. Thereby providing advice to current and future entrepreneurs about how to respond to crisis situations and to manage short- and long-term considerations. There is a growing body of research in entrepreneurship that is offering valuable insights by taking a crisis approach. In addition to the practical opportunities touched upon in this paper, there are associated numerous research potentials due to the intersection of crisis management, entrepreneurship and resilience literature.