Such large-scale disruptions as the pandemic increase the uncertainty and risk related to business. Therefore, the business continuity management (BCM) has become an essential technical solution for enterprise emergency response. Since the beginning of 2020, the COVID-19 has spread worldwide at an alarming rate causing many threats to sustainable development of the business sector. The decline in consumer demand has hugely impacted service industries, such as wholesale and retail sales, tourism. Enterprise production and operations have faced severe challenges. In this study, we develop a risk factor analysis of BCM under the presence of COVID-19 in China. Based on a statistical survey of 940 enterprises in Hangzhou City, China, this study employs ordinal logistic regression to explore the hindering effect of risk factors introduced by the epidemic on business performance. Then, the interpretive structure model (ISM) is applied to analyze the hierarchical structure of the factors under examination. The key factors influencing the enterprise production and operation during COVID-19 outbreak significantly differ across the sub-sectors of the service industry. Therefore, this paper assesses the resilience of the productive technologies and business models of different industries amid the pandemic. This paper proposes epidemic prevention and control strategy focusing on investment and government regulation to ensure sustainable business development. • The effects of the COVID-19 outbreak are analyzed. • The micro-data for Chinese enterprises are applied. • The interpretive structure model is used to identify the factors of business performance. • The strategy for recovery is proposed based on the empirical analysis. [ABSTRACT FROM AUTHOR]