Version 1
: Received: 24 August 2024 / Approved: 26 August 2024 / Online: 26 August 2024 (15:33:41 CEST)
How to cite:
Johnson, H.; Roberts, O.; Wilson, G. Exploring the Economic Resilience of Small and Medium Enterprises (SMEs) During Financial Crises. Preprints2024, 2024081863. https://doi.org/10.20944/preprints202408.1863.v1
Johnson, H.; Roberts, O.; Wilson, G. Exploring the Economic Resilience of Small and Medium Enterprises (SMEs) During Financial Crises. Preprints 2024, 2024081863. https://doi.org/10.20944/preprints202408.1863.v1
Johnson, H.; Roberts, O.; Wilson, G. Exploring the Economic Resilience of Small and Medium Enterprises (SMEs) During Financial Crises. Preprints2024, 2024081863. https://doi.org/10.20944/preprints202408.1863.v1
APA Style
Johnson, H., Roberts, O., & Wilson, G. (2024). Exploring the Economic Resilience of Small and Medium Enterprises (SMEs) During Financial Crises. Preprints. https://doi.org/10.20944/preprints202408.1863.v1
Chicago/Turabian Style
Johnson, H., Olivia Roberts and George Wilson. 2024 "Exploring the Economic Resilience of Small and Medium Enterprises (SMEs) During Financial Crises" Preprints. https://doi.org/10.20944/preprints202408.1863.v1
Abstract
This research investigates the economic resilience of small and medium enterprises (SMEs) during financial crises, focusing on the factors that enable these businesses to survive and recover from economic downturns. Employing a qualitative methodology, the study examines various aspects of SME operations, including financial management, innovation, leadership, government support, geographical location, social capital, and contingency planning. The findings reveal that effective financial management—encompassing cash flow management, debt restructuring, and diversified funding sources—is crucial for maintaining stability during financial crises. Innovation and adaptability also play significant roles, with SMEs that embraced new technologies and market strategies demonstrating greater resilience. Leadership emerged as a critical factor, with leaders who communicated effectively and managed stress contributing to their organization's ability to navigate crises. Government support provided essential relief, although its impact varied depending on accessibility and timeliness. Geographical location influenced resilience, with urban SMEs having better access to resources, while rural SMEs benefited from strong community networks. Social capital, including relationships with suppliers and customers, was vital for providing stability and support. Contingency planning and risk management were identified as essential for preparing for and responding to disruptions. The research highlights that resilience is a multifaceted attribute resulting from the interplay of financial prudence, adaptability, effective leadership, supportive policies, geographic factors, and strong social networks. These insights offer valuable lessons for SME owners, policymakers, and support organizations, emphasizing the need for a comprehensive approach to building and sustaining resilience in the face of economic challenges.
Keywords
Economic resilience; small and medium enterprises; financial management; innovation; leadership; government support; social capital
Subject
Business, Economics and Management, Business and Management
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
