Resilience measures to dealing with the COVID-19 pandemic Evidence from Romanian micro and small enterprises

Abstract

COVID-19 has created an un-precedent crisis for SMEs and challenged each single enterprise to reconsider its business operations and to adapt to the new unexpected circumstances. The present paper aims to explore the resilience measures that the micro and small enterprises in Romania can consider to dealing with the disruptions caused by the pandemic. A questionnaire-based survey was used to collect data from a sample of micro and small enterprises operating in the central part of the country. An exploratory factor analysis was employed to identify underlying variables that explain the pattern of correlations between the resilience measures for enterprises, which help them cope with the pandemic effects. There are seventeen resilience measures to the pandemic included in the analysis and further tested in the paper. In addition, a multiple linear regression was conducted to determine which of the resilience measures has the most impact on the enterprises’ overcoming illness. The results show that in order for the micro and small enterprises to better cope with the disruption caused by the COVID-19 pandemic they should demonstrate, on the first place, openness to production innovation and adaptation and ensure a strong support for customers and communities. On the second place, efforts should be directed toward ensuring efficiency of their internal operational management and worker protection. While there exist external circumstances that lead enterprises to adopt several resilience measures to better respond to the pandemic, the motivations that are most relevant in this decision are generally internal in nature.

Innovation Indicators and the Innovation Process - Evidence from the European Innovation Scoreboard

“…Innovation impact at business level Considering the current economic situation and the need for businesses to create competitive advantages, companies need to readjust their focus in order to deliver valuable results and enhance operational efficiency (Păunescu and Matyus, 2020). The authors reveal that the existing digital technologies directly impact businesses from all sectors of activity and challenge companies to become resilient in order to positively influence the local economy, which relies heavily on start-ups and small enterprises.…”

“…In addition, as the authors describe, it implies addressing external challenges with a positive attitude and attempting to maintain the internal structure flexible for adapting to change. Păunescu and Matyus (2020) further address the current pandemic situation that changed the status quo for many enterprises; the most affected being the micro and small enterprises. In the authors' own acceptance, the results which are significant for the Romanian market indicate the adaptation to the market realities and the assurance of internal business efficiency as the main factors that drive resilience.…”

Double-Sided Perspective of Business Resilience: Leading SME Rationally and Irrationally During COVID-19

“…(Kurtz & Varvakis, G, 2016). Păunescu and Mátyus (2020) defined business resilience as an organization capability to maintain its resources at a steady level by getting rationalized and being self-supported if a disruptive event occurs. Păunescu and Mátyus (2020) reflected business resilience into seventeen indicators.…”

“…Those practices have led to business failures and the consequent job-losses that particularly affect SMEs (Castro & Zermeño, 2020) and causing serious collapse (Beninger & Francis, 2021). It has created an unforeseen crisis for SMEs (Păunescu & Mátyus, 2020). ____________________________ Empirical study which involved more than 5,800 small businesses in USA reveals that COVID-19 has impacted on small businesses with (1) mass layoffs and closures, (2) risk of closures, (3) financially fragile, and (4) seeking funding through CARAS Act (Bartik, Bertrand, Cullen, Glaeser, Luca, & Stanton, 2020).…”

Sustainable Production Management Model for Small and Medium Enterprises in Some South-Central EU Countries

“…The rate of business failures among SMEs could be doubled, as some estimations show [23]. Therefore, small and medium enterprises have to respond to the challenges that the pandemic created on the market and modify their business models [24][25][26][27].…”