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Did you save some cash for a rainy COVID-19 day? The crisis and SMEs
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dc.contributor.author | Cowling, Marc | |
dc.contributor.author | Brown, Ross | |
dc.contributor.author | Rocha, Augusto | |
dc.date.accessioned | 2020-09-11T16:30:04Z | |
dc.date.available | 2020-09-11T16:30:04Z | |
dc.date.issued | 2020-11-01 | |
dc.identifier.citation | Cowling , 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 . https://doi.org/10.1177/0266242620945102 | en |
dc.identifier.issn | 0266-2426 | |
dc.identifier.other | PURE: 269505815 | |
dc.identifier.other | PURE UUID: d99240ee-9ca0-449e-bcae-de8f5442e132 | |
dc.identifier.other | crossref: 10.1177/0266242620945102 | |
dc.identifier.other | ORCID: /0000-0001-8419-476X/work/78528454 | |
dc.identifier.other | WOS: 000556329700001 | |
dc.identifier.other | Scopus: 85089142646 | |
dc.identifier.other | ORCID: /0000-0002-6164-7639/work/82179620 | |
dc.identifier.uri | http://hdl.handle.net/10023/20609 | |
dc.description.abstract | As 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.language.iso | eng | |
dc.relation.ispartof | International Small Business Journal | en |
dc.rights | Copyright © 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 https://doi.org/0.1177/0266242620945102. | en |
dc.subject | Cash balances | en |
dc.subject | COVID-19 | en |
dc.subject | Precautionary saving | en |
dc.subject | Risk | en |
dc.subject | SMEs | en |
dc.subject | HD28 Management. Industrial Management | en |
dc.subject | 3rd-DAS | en |
dc.subject.lcc | HD28 | en |
dc.title | Did you save some cash for a rainy COVID-19 day? The crisis and SMEs | en |
dc.type | Journal article | en |
dc.description.version | Postprint | en |
dc.contributor.institution | University of St Andrews. School of Management | en |
dc.contributor.institution | University of St Andrews. Centre for the Study of Philanthropy & Public Good | en |
dc.contributor.institution | University of St Andrews. Centre for Responsible Banking and Finance | en |
dc.identifier.doi | https://doi.org/10.1177/0266242620945102 | |
dc.description.status | Peer reviewed | en |
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