Productivity and Firm Exit during the COVID-19 Crisis: Cross-Country Evidence

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Gender Differences in Enterprise Performance During the COVID-19 Crisis: Do Public Policy Responses Matter?

“…Given that the COVID-19 crisis is a recent phenomenon, most studies thus far heavily relied on anecdotal evidence, selected interviews, and conceptual analysis. Among these, some have reported the effects of the pandemic on firm performance and survival ( Muzi et al, 2021 ), the strategic responses of entrepreneurs to the crisis (e.g., Kuckertz et al, 2020 ; Manolova et al, 2020 ), and the role of economic support policies on reducing firm exit ( Belghitar et al, 2021 ). Our research extends this nascent literature by shedding light on the gendered aspects of the crisis on entrepreneurial outcomes.…”

“…Such an understanding could be useful to draw lessons on building resilience in anticipation of similar adversities. Specifically, the pandemic has demonstrated the value of adapting to crises through bricolage, digitalization, and business model innovation ( Manolova et al, 2020 ; Muzi et al, 2021 ). Considering their vulnerability to public health adversities, women entrepreneurs would need contingent risk mitigation strategies, for example, by investing on technologies that build resilience.…”

“…The notion of adversity and its implications for entrepreneurial outcomes have become topics of increasing interest in entrepreneurship research (e.g., Davidsson & Gordon, 2016 ; Holland & Shepherd, 2013 ; Shepherd & Williams, 2020 ). Research in the area has examined the effects of and responses to different forms of adversities, including macroeconomic crises (e.g., Davidsson & Gordon, 2016 ; Marino et al, 2008 ), natural disasters (e.g., Salvato et al, 2020 ), financial crises (e.g., Buratti et al, 2018 ; Cowling, Marlow, et al, 2020 ), war (e.g., Bullough et al, 2014 ), violent protests (e.g., Dimitriadis, 2021 ), state fragility ( Amorós et al, 2019 ), and recently the COVID-19 pandemic (e.g., Belghitar et al, 2021 ; Manolova et al, 2020 ; Muzi et al, 2021 ). The extent to which adversities undermine entrepreneurial performance is contingent upon the form and magnitude of the adversity (e.g., Holland & Shepherd, 2013 ) and specific venture or entrepreneurial characteristics ( Amorós et al, 2019 ; Bullough et al, 2014 ).…”

COVID-19- A Struggling Recovery for the Private Sector in North Macedonia

“…e persistent decline in sales has resulted in a greater share of businesses ceasing operations for good, as many liabilities remained overdue . While the COVID-19 pandemic exhibits some signs of a Schumpeterian cleansing of unproductive rms-and in particular small rms lacking innovation, the reallocation of resources requires further examination to determine whether this process is welfare enhancing (Muzi et al 2021). Since the onset of the COVID-19 pandemic, at least 2.5 percent, but no more than 16.1 percent, of businesses have permanently closed (Figure 2).…”

“…e upper-bound estimates are based on the assumptions that those rms that could not be reached-despite trying to contact them twice in a six-month period-have closed their business. For detailed de nitions, see Muzi et al (2021).…”