Resilient SMEs and entrepreneurs: evidence from the UK craft brewing sector

Abstract

PurposeThe paper examines the sudden changes and challenges experienced by British craft breweries because of COVID-19. The purpose is twofold; firstly, to evaluate the overall growth trajectory of the craft brewing sector prior to the pandemic crisis and, secondly, to identify features of resilience and adaptability that aided business survival.Design/methodology/approachThe authors conducted 24 interviews with a sample of craft brewers during 2020, supplemented with a focus group later in 2021, to understand the impacts of COVID-19 on their businesses. Inductive thematic analysis followed a flexible six-stage approach to generating codes. Qualitative findings were set in the context of the pre-COVID-19 industry trends which were analysed using panel data from the Society of Independent Brewers' (SIBA) Annual Surveys between 2015 and 2018.FindingsFindings from the analysis reveal a range of factors influencing growth in the UK craft beer sector before the pandemic crisis, such as levels of investment and local network ties, and identify a range of strategies implemented by brewers in response to the crisis, including new packaging and supply channels, more intensive marketing and greater online engagement with customers. Analysis of the intersection between aspects of individual and organisational resilience also revealed that dynamic responses to an external crisis depend on individual resilience characteristics before organisational strategies can be developed.Originality/valueThe study provides fresh empirical evidence to practitioners and policymakers to help forecast and future-proof the UK craft beer sector, as well as elucidating aspects of resilience that apply to SMEs in the global industry who face similar challenges. Moving towards a post-COVID-19 economy, the paper offers important theoretical insights into how the resilience of breweries, and other SMEs, is shaped by complex interdependencies and networks and how their adaptive responses might strengthen future business models.

Business model transition and entrepreneurial small businesses: a systematic literature review

“…, 2021). Scholars argue that crisis responses begin with individual resilience as the first step, and a firm strategy is built upon in the second step (Waehning et al. , 2023).…”

“…Resilience in this context is defined as the capability of existing small businesses to detect threats and seize opportunities (Assefa et al, 2022;Corvello et al, 2022;Khurana et al, 2022;Matarazzo et al, 2021). Scholars argue that crisis responses begin with individual resilience as the first step, and a firm strategy is built upon in the second step (Waehning et al, 2023). The derived results show positive effects of DC on firm performance both before and during the COVID-19 pandemic (Dejardin et al, 2023).…”

How small organisations develop sustainability-oriented strategies: evidence from northwest Himalayas

“…Fundamentally, resilience is the ability of systems to respond to disturbances and maintain equilibrium; popularised by Holling (1973) on ecological systems, resilience theory has been used in different disciplines, including within organisational contexts (Crichton et al, 2009;Falasca et al, 2008;Horne and Orr, 1997;Starr et al, 2003;Waehning et al, 2023).…”

A study of entrepreneurial marketing activities and firm performance in an immediate post-COVID-19 era: the moderating role of coopetition

“…In terms of the timeliness and importance of this investigation, the temporal setting is especially relevant in addition to the previously mentioned pertinent nature of the sector context. That is, during COVID-19, many entrepreneurs faced a major crisis, with various firms ending trading and decision-makers of surviving businesses seeking to develop resilience (Kraus et al ., 2020; Bressan et al ., 2021; Waehning et al ., 2023). Preparation for a post-pandemic period occurred in different ways, including respective owner-managers receiving government assistance and/or pivoting facets of their business models (Behl et al ., 2023; Kabir and Abubakar, 2023; Klöckner et al ., 2023).…”