Small Firms, Big Shocks
DOI link for Small Firms, Big Shocks
Small Firms, Big Shocks book
Small firms are less likely to have the deep pockets and financial buffer needed to cover the costs of a response once a crisis has occurred. Small firms are more likely to go bust following a prolonged drop in cash flow. Communal schemas and contracting practices facilitate resilience in entrepreneurial teams through trust and creativity, as well as clarity and accountability. Communal schemas in a small organizational unit mean that team members care about each other and value relationships. The empirical evidence showed a similarity with respect to methods of financing among the surviving firms, namely self-financing rather than tightening any bank credits. Expatica was a "born global"1 firm established in the Netherlands with the aim of providing information and services to expatriates living abroad. All permanent and freelance staff members had reported directly to van Veldhuizen.