Navigating uncertainty : the resilience of third sector organizations and socially-oriented SMEs during the COVID-19 pandemic
Abstract
This paper investigates the impact of the COVID-19 pandemic on UK third sector (non-profit 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.
Citation
Linares Zegarra , J M & Wilson , J O S 2023 , ' Navigating uncertainty : the resilience of third sector organizations and socially-oriented SMEs during the COVID-19 pandemic ' , Financial Accountability & Management , vol. Early View . https://doi.org/10.1111/faam.12373
Publication
Financial Accountability & Management
Status
Peer reviewed
ISSN
0267-4424Type
Journal article
Description
Funding: The authors gratefully acknowledge the ESRC-funded Enterprise Research Centre and the Department for Business, Energy and Industrial Strategy (BEIS) for funding for this study.Collections
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