Crisis Management and Small Businesses

Sukanlaya Sawang
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Sukanlaya Sawang: Coventry University

Chapter 2 in Entrepreneurial Crisis Management, 2023, pp 17-39 from Springer

Abstract: Abstract This chapter unpacks the reasons why small businesses, as opposed to larger organizations, are more vulnerable to crises. It is also important to understanding how small businesses perceive, interpret, and respond to crises, through the sensemaking process. Sensemaking is the process of constructing meaning from available data and experiences. This involves understanding the risks associated with certain decisions, as well as being able to effectively utilize crisis management strategies after these risks have been identified. This chapter also introduces two key theories, ‘social capital’ and ‘Business Continuity Management (BCM)’ to better understand small businesses crisis management behaviors. Social capital refers to resources that are available through networks of relationships between people, such as mutual trust or shared values. BCM is a system of processes and controls designed to protect a company’s critical business processes from disruption by accounting for potential problems stemming from natural disasters or other unexpected events. Utilizing the sensemaking process along with social capital and business continuity management can help reduce risk, aiding small businesses in overcoming any unforeseen challenges that may arise.

Keywords: Sensemaking; Types of crises; Stakeholder management; Small business response (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-25188-7_2

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DOI: 10.1007/978-3-031-25188-7_2

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