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(ä): e00169
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Startups in times of crisis ? A rapid response to the COVID-19 pandemic
#MMPMIDC7183981
Kuckertz A
; Brändle L
; Gaudig A
; Hinderer S
; Morales Reyes CA
; Prochotta A
; Steinbrink KM
; Berger ESC
ä-/-ä 2020[Jun]; 13
(ä): e00169
PMIDC7183981
show ga
RESEARCH SUMMARY: The discovery of the coronavirus (SARS-CoV-2) and the spread of
COVID-19 have led many governments to take drastic measures. The lockdown of
large parts of society and economic life has come as an exogenous shock to many
economic actors, not least innovative startups. This rapid response research
combines a qualitative research design informed by entrepreneurial ecosystem
actors with an analysis of policy measures called for, announced, and reportedly
implemented in the international press. Interviews from an entrepreneurial
ecosystem offer a first-hand account of the adversity startups face during a
crisis and how by utilizing bricolage responses they cope, and the analysis of
policy measures can serve as an inspiration to design support initiatives to
protect startups from the consequences of the current lockdown and to alleviate
the effects of future crises. MANAGERIAL SUMMARY: The lockdown measures as a
response to the spread of the new coronavirus threaten the existence of many
innovative startups. Our rapid response research first illustrates the challenges
entrepreneurs face as a consequence of the crisis. Second, we illustrate how
entrepreneurs are dealing with the effects of the crisis and what they are doing
to protect their ventures. Finally, we present measures that could be utilized by
policymakers to assist entrepreneurs facing challenges. The research conducted
suggests that while startups are successfully leveraging their available
resources as a first response to the crisis, their growth and innovation
potential are at risk. Therefore, policy measures should not only provide first
aid to startups by alleviating the pressure caused by constrained cashflow, but
also involve long-term measures embedded in and supported by the wider
entrepreneurial ecosystem to ensure rapid recovery and growth.