ABSTRACT
This chapter explores the impact of the economic crisis on small and medium-sized enterprises (SME) and on people management within them. It presents information from some of the European contexts hit most by the economic crisis. The chapter focuses on Greece, Italy and Spain because they experienced stronger economic effects of the crisis and implications for the general population in comparison with other European Union member states. SMEs are generally more vulnerable in times of crisis for a variety of reasons: inability to downsize, as they are already small; less diversification in their economic activities; weaker financial structure; lower or no credit rating; heavy dependence on credit; and fewer financing options. During the economic crisis, organisational agility, through scalable workforce, fast organisational learning and a highly adaptable organisational infrastructure, was essential for survival in this dynamic and unpredictable environment. The economic crisis of 2008 hit Italy just as Prodi’s government collapsed and Berlusconi and the Right regained power.
