Entrepreneurship in the Times of Pandemic: Barriers and Strategies

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.

Research agenda on turnaround strategies beyond systemic disruptions

“…In the strategic behavior of companies, the dynamic response capacity must prevail in the face of structural and conjunctural changes that have occurred. As was the case with the economic crisis that began in 2008, triggered after the bankruptcy of Lehman Brothers, the economic crisis caused by coronavirus disease 2019 (COVID-19) also represents a suitable natural experiment for the evaluation of economic resilience, corporate survival and the adequacy of the mechanisms of adjustment adopted by the companies (Chaturvedi and Karri, 2022). During the last decades, issues related to business resilience and management in times of systemic disruptions characterized by VUCA environments have emerged (Hamel and V€ alikangas, 2003;Linnenluecke, 2017;Lv et al, 2018;Somers, 2009;Williams et al, 2017).…”

“…, 2015; Trahms et al. , 2013), with special emphasis on entrepreneurship (Chaturvedi and Karri, 2022; Latham, 2009; Robbins and Pearce, 1992) and innovation (Santana et al. , 2017; Hosseinzadeh Shahri and Nematollahi Sarvestani, 2020).…”

“…During the last decades, issues related to business resilience and management in times of systemic disruptions characterized by VUCA environments have emerged (Hamel and V€ alikangas, 2003;Linnenluecke, 2017;Lv et al, 2018;Somers, 2009;Williams et al, 2017). In this sense, managers began to focus their attention on crisis management strategies, developing a wide field of knowledge on turnaround strategies (Balgobin and Pandit, 2001;Chen and Hambrick, 2012;Hambrick and Schecter, 1983;Hofer, 1980;Tangpong et al, 2015;Trahms et al, 2013), with special emphasis on entrepreneurship (Chaturvedi and Karri, 2022;Latham, 2009;Robbins and Pearce, 1992) and innovation (Santana et al, 2017;Hosseinzadeh Shahri and Nematollahi Sarvestani, 2020).…”

Entrepreneurial Start-up Motivations and Growth of Small and Medium Enterprises in Tanzania: The Role of Entrepreneur’s Personality Traits

“…Also, small businesses face challenges in supplying new products to suit consumer demand in specific areas (Mehdi et al, 2021). Other challenges are vulnerable to environmental change, unregulated digital ecosystems, low fixed prices and less negotiating power among entrepreneurs (Chaturvedi & Karri, 2021;Karki & Risal, 2021;Mafimisebi & Ogunsade, 2021).…”

Understanding pandemic entrepreneurship as a unique form of crisis entrepreneurship

“…Related to this negative finding, Torr es et al (2022) found that entrepreneurs in France were at higher risk of burnout and bankruptcy during the pandemic. Also, Haltiwanger (2022) finds that small, entrepreneurial firms suffered disproportionately because of the pandemic (see also Chaturvedi and Karri, 2021 for a discussion of the effects of the pandemic on small businesses).…”