Search

In this commentary, we examine both the positive and negative potential impact of the COVID-19 pandemic on the growth of small- and medium-sized enterprises (SMEs). We conceptualise the firm as a system of various resource components (strategic, physical, financial, human and organisational resources) and firm growth as the expansion of this resource system. Based on qualitative data drawn from Canadian high-growth SMEs, we discuss the potential impact of the crisis on these resource system components. We demonstrate how virtuous growth spirals of these resources co-evolve through various feedback and feed-forward loops. Furthermore, we discuss how a temporary growth setback, due to the crisis, can in fact provide an opportunity for entrepreneurs to realign, and regain the balance and fit within their firm's resource system. This realignment enables the firm to take on the next phase of growth. [ABSTRACT FROM AUTHOR]

This study considers the relationship between people's access to resources and their likelihood to start a new business, and particularly how this relationship might be moderated by formal and informal institutions. Individual-level resources might be more potent for new business creation in countries with financial and educational systems that are more oriented toward entrepreneurship, higher levels of trust, and cultures that are less hierarchical and conservative. The hypotheses are tested by undertaking random-effects multilevel analyses of a multi-source data set that spans a 5-year time period (2003-2007). The study's findings offer important implications for research and practice. [ABSTRACT FROM AUTHOR]

In this study, we investigate the relationship between institutional elements of the social environment and entrepreneurial cognitions, which lead to the individual's venture creation decision. Employing a sample of 757 entrepreneurs and non-entrepreneurs from eight countries we examine the extent to which institutions influence venture creation decisions, where entrepreneurial expert scripts act as a mediator. Results show that various institutional elements, such as legal and financial systems, affect venture arrangements and willingness scripts. Venture arrangements scripts, in turn, have the most significant impact on an individual's venture creation decision. [ABSTRACT FROM AUTHOR]