Survival strategies adopted by microbusinesses during COVID-19: an exploration of ethnic minority restaurants in northern Finland

Abstract

PurposeThis paper explores the survival strategies and coping mechanisms of ethnic minority entrepreneurs operating in the hospitality sector in northern Finland during the ongoing COVID-19 pandemic.Design/methodology/approachThe paper utilizes qualitative research approach based on six exploratory case studies. The in-depth interviews in two phases were conducted with owners/mangers of ethnic minority entrepreneurial restaurants.FindingsThe findings reveal that all studied case firms undertook quick adjustments in response to the COVID-19 pandemic. For example, staff working hours were reduced through mutual consultation, and readjustments to the supply chain were made so that critical ingredients remain available despite the forced lockdown and supply chain bottlenecks. However, the readjustment of the supply chain was not visible in all case firms. Some of the owner-managers who were interviewed decided to keep doing business with the ethnic minority suppliers, despite some transportation problems due to lockdowns, especially in the early phases of COVID-19. Findings also suggest that the support grants announced by the state appeared not to be particularly useful for these restaurants due to restrictive eligibility criteria that many microbusinesses potentially fail to meet. Finally, the sample microbusinesses (restaurants) entrepreneurs recognize the importance of home delivery for their business survival, although they were critical of online food delivery service providers (apps) due to their high charges. Some of the case restaurants gave customers incentives for directly ordering from them, as an alternative strategy.Originality/valueThis paper is one of the first studies to specifically highlight the peculiarities of ethnic minority entrepreneurship and survival dynamics in northern Finland, where running the restaurant operations, including ensuring the supply chain management, is more complex than in the case of ethnic minority restaurants in more well-connected European countries and cities with an established history of immigrant businesses. This study is also novel in terms of specifying the strategies adopted by ethnic minority businesses in adjusting to the disruptions caused by the COVID-19 pandemic and surviving through it. At the same time, it has shown limitations and some problems associated with accessing state support announced for the hospitality industry in response to COVID-19. Finally, it offers a new angle by explicitly highlighting the power dynamics between restaurants and food ordering platforms (apps) and the potential alternatives in this specific context.

The role of marketing agility and risk propensity in resilience and survival of eastern European immigrant entrepreneurs in Denmark

“…The risk propensity of immigrant entrepreneurs has been found to be higher than native entrepreneurs (e.g. Njoku and Cooney, 2018), arguably due to a lack of viable alternative opportunities, and in many cases, the businesses represent a form of emancipation as the only available economic option (Arslan et al, 2022). Such studies further highlight the criticality of endogenous factors, including personal characteristics, influencing the risk propensity of immigrant entrepreneurs, the length of stay in the host destination, language skills, cultural integration and ethnic backgrounds (Dheer, 2018;Rodr ıguez-Guti errez et al, 2020) as well as exogenous, contextual and environmental factors (e.g.…”

“…In this context, scholars have undertaken insightful studies focusing on different dynamics and network connections of immigrant entrepreneurship, particularly immigrants with non-Western (particularly African and Middle Eastern) origins in Western European countries, including Nordic welfare states (e.g. Rezaei et al, 2013;Tavassoli and Trippl, 2019;Arslan et al, 2022;Kentosova et al, 2022).…”

Guest editorial: The effect of COVID-19 on the performance of ethnic-minority firms in the UK and worldwide

“…The second paper titled "Survival strategies adopted by microbusinesses during COVID-19: an exploration of ethnic minority restaurants in northern Finland" by Arslan et al (2022) analysed the survival strategies and coping mechanisms adopted by ethnic minority entrepreneurs operating in the hospitality sector in Northern Finland during the pandemic. The paper aims to understand the business support schemes provided by the government and its extent in helping ethnic minority firms to survive.…”

“…Although previous research in the field examined the coping mechanisms by entrepreneurs and ethnic minority firms during a crisis, Arslan et al (2022) research focusses on a unique geographical area where immigration is a new phenomenon compared to the rest of the country. Therefore, this paper fills in an important gap in previous research by examining the peculiarities of these ethnic minority owners in Northern Finland where the region is not considered to be well connected compared to the rest of the country and other European cities.…”

“…Although previous research in the field examined the coping mechanisms by entrepreneurs and ethnic minority firms during a crisis, Arslan et al . (2022) research focusses on a unique geographical area where immigration is a new phenomenon compared to the rest of the country.…”