Evidence of COVID-19 lockdown stringency on SME survival in Brazil

Paulo Feitosa and Suelene Mascarini

Journal of Entrepreneurship and Public Policy, 2025, vol. 14, issue 2, 251-268

Abstract: Purpose - We aimed to study how movement restrictions during the COVID-19 pandemic affected the survival of small and medium-sized enterprises (SMEs) in Brazil. Design/methodology/approach - We use a unique dataset of 6,470 Brazilian SMEs and apply a generalized ordered probit model to assess the effects of pandemic-induced mobility restrictions on SME survival in Brazil. Findings - Our findings highlight the drivers of SME resilience in Brazil during the COVID-19 pandemic. Weaker mobility restrictions, longer business histories, and greater average invoicing and leadership characteristics affect SME survival, which aligns with the literature. The positive association between relaxed restrictions and survival emphasizes the importance of balanced policies, recognizing the crucial role of SMEs in local communities and national economic recovery. Research limitations/implications - The findings of this study have broader implications beyond the COVID-19 pandemic, as they offer insights into how SMEs in developing countries such as Brazil can be affected by mobility restrictions. This knowledge can guide policymakers and businesses in tailoring support measures for various contexts of shocks and resilience-building strategies. Originality/value - This study contributes to the literature by focusing on a significant dataset of Brazilian SMEs and analysing the impact of varying levels of mobility constraints on their survival during the COVID-19 pandemic. Its originality lies in two aspects. First, it offers an innovative approach and new evidence on how mobility restrictions affected SME survival amidst the pandemic. Second, it sheds light on Brazil, a developing country where businesses, especially SMEs, were significantly affected by the pandemic, providing insights that can inform policies and strategies for SME resilience in similar contexts.

Keywords: SMEs; Movement restrictions; Survival; Lockdown measures; COVID-19; Resilience (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jepppp:jepp-02-2024-0024

DOI: 10.1108/JEPP-02-2024-0024

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