Microentrepreneurial commitment and perseverance in local communities during the COVID-19 crisis

Abstract

Purpose: This paper aims to examine the puzzling performance of microbusinesses during the COVID-19 crisis by drawing on the Pinocchio paradox as a theoretical lens to explain their entrepreneurial commitment (EC) and perseverance in an existential crisis. Design/methodology/approach: Findings are drawn from a survey of owners and managers of 202 microbusinesses in Northern England during lockdown periods caused by the COVID-19 crisis. Findings: The sampled microbusinesses remained committed to serving communal needs during the crisis and persevered with high service levels despite the negative implications for the viability of those businesses. Originality/value: The paper fills an important gap in understanding why microbusinesses, which contribute significantly to the UK and other national economies, continued to serve their local communities during the COVID-19 crisis despite the financial risk of this activity. The paper’s principal contribution is in understanding the role of EC and perseverance, underpinned by local network ties, in enabling microbusinesses to remain active during an economic crisis to serve unmet needs and to compensate for lost business. State policies are proposed to assist microbusinesses and communities in anticipating and supporting their needs in and beyond future crises.