Crisis Management of Small and Medium Enterprises in Response to the COVID-19 Public Health Crisis: The Case of Colombia

Abstract

Literature in crisis management has extensively developed over the last decades. Nevertheless, most studies have focused in analysing large companies and evidence of strategies adopted by small and medium enterprises (SMEs) to face a crisis is usually limited, especially in developing countries. Therefore, this study seeks to answer how COVID-19 has impacted SMEs in Colombia, determining the strategies that business owners have adopted to confront this event. Through a mixed method approach, we analyse SME business processes most impacted by the pandemic and identify major strategies adopted by business owners to mitigate adverse consequences. The results show that areas where SMEs experienced more problems were short-term employee payments, significant declines in customer demand, and repurposing products and services. To face the crisis, many SMEs used different strategies, such as enhancing their usage of online marketing channels, building new alliances with key stakeholders, entering new markets, or serving different clients.