Small business research: Time for a crisis-based view

Abstract

Small business and crisis management research are two established but largely uncoupled domains of study. Given the economic importance and vulnerability of a small businesses, closer attention is needed to understand how their owners think and act in relation to crisis management efforts in the event of business interruptions.This study highlights the relative absence of crisis management research in the small business literature and the absence of a small business focus in the crisis management literature, despite a rising tide of regulation and legislation that requires companies to have crisis/business continuity management arrangements in place. The study examines the understanding of, and resourcing and support for, crisis management using case studies from four UK small businesses. The resulting analysis illuminates four themes; understanding risks, three-dimensional crisis, learning from crisis, and stifled support systems. Furthermore, data suggest that owner-managers may frame risks in two ways — a ‘growth vulnerability paradox’ and the ‘risk elastic’ — while their understanding of crisis is conceptualized using a chronological approach to identify three key areas: crisis threat, crisis response, and crisis impact. The study concludes by asserting the need for a crisis-based view of small business research and proposes an agenda for future study.