Organizational Resilience and Entrepreneurship: An Analysis of the
Impact of the Covid-19 Pandemic on Small Businesses
The pandemic of covid-19 had a huge impact on small enterprises such as restaurants where
they have been forced to adapt to the new challenges regarding consumer behaviour,
restrictions and economic crises. That's why organisational resilience is a crucial factor when
it comes to surviving crises. Organisational resilience includes many strategies and processes
where companies use creativity and entrepreneurship to overcome hardships.
In the article “Resilience and entrepreneurship: a systematic literature review” six research
directions are identified. It also highlights the importance of the individual and the
organisational methods to overcome crisis. The results of the studies are proven in the news
article published in New York Times (2020) where a restaurant owner was forced to adapt
drastically to the pandemic and eventually even closing it down. This is an example of how
individual leadership is not always enough for the survival of the organisation.
Another article that discusses the subject is (Strategy & Society) and it says that in order for a
company to maintain its competition advantages in the long run it has to balance the
economic goals with the social responsibility. This is supported by the article published by
Brookings Institution (2020) which criticises the lack of support for small businesses during
Covid-19. The companies that had already a plan för social responsibility and a stronger
network survived better during the pandemic.
“Comment” on the other hand walks us through the importance of a circular economy for
better resilience and survival during pandemics by focusing on reusing and resource
optimization. This is shown in the article published by Daily Bruin (2024) which proved that
restaurants with their own delivery systems did not have the need for a third-party company
which resulted in more stability and larger marginals.
“Boers & Brozovic” Study shows that it is crucial for surviving to have a fast adapting
systeme and strong customer relations. An example of this is an Indian restaurant that sells
Chinese food. It overcomes the cultural bias by changing the menu and strengthening the
bond with its customers. Vice (2020)
Also, a study “Brozovic D'Auria Tregua Camilleri” analyzes how Swedish, Spanish and
Italian enterprises handled the crisis by economic, social and environmental sustainability.
This can be related to the article published by Eater Chicago (2021) where restaurants in
Chicago used digital solutions, outdoor serving and multiple sources of income. The
restaurants with a flexible business model and deeper understanding of sustainability had
bigger chances of survival.
To summarise, the result of the studies shows that for a business to succeed in the long run
and overcome crisis and hardships it is crucial to have organisational resilience, strong
customer relations and strategic environmental goals. It is also necessary to adapt to
digitalisation and to focus on cooperation instead of competition.
References:
Daily Bruin. (2024, May 22). All the power inside: The high costs of food delivery apps on
restaurants. Daily Bruin.
https://dailybruin.com/2024/05/22/all-the-power-inside-the-high-costs-of-food-delivery-appson-restaurants
Hamilton, G. (2020, April 23). My restaurant was my life for 20 years. Does the world need it
anymore? The New York Times Magazine.
https://www.nytimes.com/2020/04/23/magazine/closing-prune-restaurant-covid.html
Povich, E. S. (2020, April 6). A band-aid on a gunshot wound: How the restaurant industry is
responding to COVID-19 relief. Brookings Institution.
https://www.brookings.edu/articles/a-band-aid-on-a-gunshot-wound-how-the-restaurant-indus
try-is-responding-to-covid-19-relief
Vice News. (2020). What it’s like to run a small restaurant in India amid the pandemic. Vice.
https://www.vice.com/en/article/chinese-restaurant-india-pandemic-businesse
Selvam, A. (2021, May 4). How Chicago restaurants fought to survive the pandemic. Eater
Chicago.
https://chicago.eater.com/2021/5/4/22409397/chicago-restauraunts-covid-19-one-year-later-i
mpact-challenges-lessons-learned
0
