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Navigating uncertainty: The resilience of third‐sector organizations and socially oriented small‐ and medium‐sized enterprises during the COVID‐19 pandemic

Year: 2023

Type: article

Abstract: This paper investigates the impact of the COVID‐19 pandemic on U.K. third‐sector (nonprofit organizations and social enterprises) and socially oriented small‐ and medium‐sized enterprises (SMEs), and provides insights regarding their organizational resilience. Using data from the Longitudinal Small Business Survey, the results of an extensive empirical analysis suggest that relative to commercial (for‐profit) SMEs, social enterprises were less likely, and socially oriented SMEs more likely to perceive the pandemic as an obstacle to business success. Third‐sector and socially oriented SMEs were more likely to increase their activities compared to commercial SMEs. Moreover, the COVID‐19 pandemic appears to have had a differential impact on the future plans of third‐sector and socially oriented SMEs relative to commercial SMEs. Third‐sector organizations were less likely to use government‐backed loans, suggesting a need for alternative forms of support or financing to weather economic disruptions. Overall, our analysis suggests a resiliency and versatility among third‐sector and socially oriented SMEs in dealing with unexpected and significant external shocks.

Source: Financial Accountability and Management

DOI: 10.1111/faam.12373

Authors: José M. Liñares‐Zegarra, John O. S. Wilson

Institutions: University of Essex, University of St Andrews

Language: English

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $2,630