Determinants and consequences of SME insolvency risk during the pandemic

Kaya, Orçun

doi:10.1016/j.econmod.2022.105958

Cited by 30 publications

(22 citation statements)

References 49 publications

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“…On the other hand, focusing on the COVID-19 policy response in Germany, Dorr et al (2022) revealed that government interventions helped to postpone SME insolvencies that is particularly pronounced among financially weak and small firms. Kaya (2022) illustrated that SME insolvency risk increased in the Euro area by around 28% during the pandemic.…”

Section: Financing the Smesmentioning

confidence: 99%

Syrian SMEs in Times of Covid-19 Pandemic: Challenges, Adaptation and Policy Measures

Akkad¹,

Mouselli²

2023

Preprint

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SMEs constitute the backbone of the Syrian economy which have suffered manifold challenges due to the continuous Syrian war. Covid-19 added further pressures on Syrian SMEs and force them to take certain adaptation strategies to survive. This paper aims to investigate the main challenges that face Syrian SMEs during the pandemic and illustrate how they respond to adversities emerged from governmental intervention to control the spread of the virus. It also discusses the measures initiated by the government to support SMEs during the pandemic. Through interviewing persons from the Syrian SMEs ecosystem, we find that high interest rates on SMEs loans, decline on demand as well as high inflation represent the main challenges. SMEs respond to these challenges by marketing products online, stock procurement, and strengthen connections with stakeholders. We recommend the Syrian authorities reduce lending rates and increase loan size available to SMEs to help them overcome the pandemic adversities. Moreover, SMEs will immensely benefit from training on digital tools to enhance their expansion and survival opportunities. Furthermore, bazars should be organized around the year to give SMEs the opportunity to gain continuous access to markets. In addition, incubation services should be revised, particularly, to SMEs with great potential to grow to create the suitable environment for them to scale and flourish.

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Section: Financing the Smesmentioning

confidence: 99%

Syrian SMEs in Times of Covid-19 Pandemic: Challenges, Adaptation and Policy Measures

Akkad¹,

Mouselli²

2023

Preprint

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“…The continuity of individual enterprise activities is interrupted by changes in the business environment, with the global pandemic COVID-19 being the most frequent cause in recent years (Androniceanu, 2020;Androniceanu & Marton, 2021). Enterprises were unprepared for this change, which affected their operational efficiency (Brand 2022, Dos 2022, Kaya 2022, Yang 2022).…”

Section: Entrepreneurship and Sustainability Issuesmentioning

confidence: 99%

Business interruption management in the context of the COVID-19 pandemic for small and medium-sized enterprises in Slovakia

Mošková¹,

Brutovský²,

Furiak³

et al. 2023

JESI

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From the beginning of 2020 to the end of 2021, a nationwide survey was conducted to examine business interruption due to the COVID-19 pandemic and to identify the impact of the pandemic on SMEs in the Slovak Republic. It also focused on identifying areas such as risk management with BCM, and crisis management within individual enterprises. The survey was carried out using a questionnaire distributed to SMEs operating in the country. Based on the questions from the questionnaire, four research hypotheses were developed. Based on the results of our investigation, we found that enterprises cannot correctly assess their capability level and manage risks effectively, potentially exposing themselves to further threats arising from such a relationship. There is a correlation between the business sector and the extent to which an enterprise has been affected by a pandemic. Enterprises with implemented risk management areas had operations halted for shorter periods than enterprises without implementation. There is a relationship between business sectors and the extent to which they were affected by the pandemic. The discussion concludes that the pandemic posed a type of threat for which several SMEs were unprepared. At the same time, no established risk minimization procedures would address this issue. Effective implementation of risk management as prevention or crisis management as response and application of BCM principles is one of how enterprises could prepare for risks and crises and increase their resilience.

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“…According to Kaya's research, during the pandemic outbreak, SMEs' risk of insolvency increased by an average of 10% and by 21% throughout the pandemic (Kaya, 2022). That results in entrepreneurs' concerns about the future of their businesses but also in decisions on cost-cutting.…”

Section: Consequences Of the Pandemic For Smesmentioning

confidence: 99%

“…The coronavirus pandemic is an unprecedented phenomenon in this century and the second half of the previous century, resulting in larger business uncertainty for entrepreneurs (Rakshit et al, 2021) and a direct threat to the financial stability and survivability of enterprises, also in Europe (Androniceanu & Marton, 2021;Kaya, 2022). The pace of the pandemic's development, its global scope, and the consequences for entire economies and businesses caused great instability and uncertainty among entrepreneurs.…”

Section: The Gap In the Existing Body Of Knowledgementioning

confidence: 99%

Entrepreneurs' concerns about the coronavirus pandemic and enterprise’s sustainable development

Stanek-Kowalczyk¹,

Zajkowska²

2023

JESI

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The coronavirus pandemic, both in terms of its scale and impact on the economy and society, was a surprise to everyone and raised many concerns for entrepreneurs. Some of these concerns materialized while others did not, but still, these concerns impacted entrepreneurs' more conservative attitudes, seeking savings or limiting activities. This study aimed to answer whether entrepreneurs' concerns about the coronavirus pandemic and its impact on business have affected the sustainable development of enterprisesdid it stop or limit the social and environmental activities of small and medium enterprises in Poland? To answer this question 177 interviews among owners and senior executives were conducted in September 2020, using the CATI method. The study results have shown that entrepreneurs' concerns about the pandemic did not negatively affect enterprises' sustainable development. Moreover, the study's results did not confirm a statistically significant correlation between the materialization of pandemic-related concerns and enterprises' sustainable development.

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Determinants and consequences of SME insolvency risk during the pandemic

Cited by 30 publications

References 49 publications

Syrian SMEs in Times of Covid-19 Pandemic: Challenges, Adaptation and Policy Measures

Syrian SMEs in Times of Covid-19 Pandemic: Challenges, Adaptation and Policy Measures

Business interruption management in the context of the COVID-19 pandemic for small and medium-sized enterprises in Slovakia

Entrepreneurs' concerns about the coronavirus pandemic and enterprise’s sustainable development

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