Confronting the unprecedented: micro and small businesses in the age of COVID-19

Abstract

PurposeThe purpose of this study is to understand how micro and small firms are navigating through the coronavirus disease 2019 (COVID-19) threat, and the alternatives they are implementing to coexist with the ongoing crisis. To this end, Italy's socioeconomically and traditionally significant wine industry is examined. The study considers insights of the theory of planned behaviour (TPB) and develops a theoretical framework, which proposes various emerging theoretical dimensions, including proactiveness, support-reliance and resourcefulness.Design/methodology/approachWinery owners–managers were contacted and invited to partake in the study completing an online questionnaire. Overall, 167 useable responses were collected.FindingsWhile facing the loss of vital income through decreasing demand and exports, participants resort to exploiting various initiatives, including “reinventing” their firms. Their observations also recognise the vital supporting role of various key stakeholders, first and foremost family members, as well as clients and staff. Concerning how owners-managers envision managing their firm post-COVID-19, two predominant groups are identified, one strongly favouring modern-day alternatives, and the second committing to the firm's traditional business model. Overall, the different predictors of the TPB, namely attitude, subjective norms and perceived behavioural control emerged.Originality/valueThis study is one of the first that empirically analyses micro and small firms in a socioeconomically and traditionally significant industry during an unprecedented event. In addition, the proposed theoretical framework provides a roadmap and guide to examine, understand and assimilate the entrepreneurial journey through a devastating event.