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dc.contributor.authorCowling, Marc
dc.contributor.authorBrown, Ross
dc.contributor.authorRocha, Augusto
dc.identifier.citationCowling , M , Brown , R & Rocha , A 2020 , ' Did you save some cash for a rainy COVID-19 day? The crisis and SMEs ' , International Small Business Journal , vol. 38 , no. 7 , pp. 593-604 .
dc.identifier.otherPURE: 269505815
dc.identifier.otherPURE UUID: d99240ee-9ca0-449e-bcae-de8f5442e132
dc.identifier.othercrossref: 10.1177/0266242620945102
dc.identifier.otherORCID: /0000-0001-8419-476X/work/78528454
dc.identifier.otherWOS: 000556329700001
dc.identifier.otherScopus: 85089142646
dc.identifier.otherORCID: /0000-0002-6164-7639/work/82179620
dc.description.abstractAs COVID-19 spreads across the globe, a common public policy response has been to enforce the temporary closure of non-essential business activity. In some countries, governments have underwritten a proportion of the wage income for staff forced to furlough or broadened their welfare systems to accommodate newly laid off workers or small business owners. While these actions are helpful, they do not explicitly address the lack of sales trading activity on business income and cash balances. In commentary, we identify what types of businesses have been increasing their cash holdings in the lead up to COVID-19 as an indication of what types of small and medium-sized enterprises (SMEs) are most at risk if the lockdown extends for a protracted period of time. We find that only 39% of the of businesses were bolstering their cash balances leading up to COVID-19 which suggests that 61% of businesses may run out of cash, including 8.6% that had no retained earnings whatsoever with micro firms at particular risk. The importance of precautionary saving for SMEs is critical to enhance resilience when Black Swan events occur.
dc.relation.ispartofInternational Small Business Journalen
dc.rightsCopyright © 2020 the Author(s). This work has been made available online in accordance with publisher policies or with permission. Permission for further reuse of this content should be sought from the publisher or the rights holder. This is the author created accepted manuscript following peer review and may differ slightly from the final published version. The final published version of this work is available at
dc.subjectCash balancesen
dc.subjectPrecautionary savingen
dc.subjectHD28 Management. Industrial Managementen
dc.titleDid you save some cash for a rainy COVID-19 day? The crisis and SMEsen
dc.typeJournal articleen
dc.contributor.institutionUniversity of St Andrews. School of Managementen
dc.contributor.institutionUniversity of St Andrews. Centre for the Study of Philanthropy & Public Gooden
dc.contributor.institutionUniversity of St Andrews. Centre for Responsible Banking and Financeen
dc.description.statusPeer revieweden

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