Managing Crisis in SMEs

In this chapter, we discuss the COVID-19 crisis management from the point of view of SMEs. We review the available literature and based on that develop a conceptual framework. We analyse how SMEs have managed COVID-19 crisis. We take a deeper look at the manufacturing SMEs and tourism SMEs—the sectors that are seen more affected by the crisis. The COVID-19 pandemic is a great public health emergency, but also deeply impacts small- and medium-sized enterprises (SMEs). SMEs are limited in their financial capacity and often do not have professionals employed whose task is to analyse the business risks and to suggest effective, timely measures. Sudden shortage and even unavailability of liquidity have been affecting a number of SMEs and may in the near future affect even larger number of companies. The measures practised by the SMEs are seen most effective when applied in a simultaneous and coordinated manner, supported by government subsidies.