Entrepreneurship during crisis: Innovation practices of micro and small tour operators

Abstract

Innovation as a response strategy to a crisis needs further understanding for small enterprises. This exploratory research investigates if, why, and with whom entrepreneurs in micro and small enterprises engage in innovation activities during the atypical context of the COVID-19 crisis in the tourism sector. The multiple case study with three German entrepreneurs in the tour operator market shows that micro and small enterprises despite their size hold the capacity to initiate and manage several innovation projects of different types and in different stages of the innovation value chain simultaneously during a crisis. To do so, the entrepreneurs preferably engage participants with strong social ties, independent from a place. The perceived benefits are both related to the innovation output (e.g. generate income), and the innovation activities (e.g. increased motivation of staff, increased trust of customers during the crisis). Further research is encouraged on the long-term effects of innovations resulting from a crisis.