The Impact of Covid-19 Pandemic Crisis on Micro-Enterprises: Entrepreneurs’ Perspective on Business Continuity and Recovery Strategy

Abstract

Covid-19 pandemic outbreaks have led many countries to impose travel restrictions and movement controls.In Malaysia, the small business sector is one of the most directly affected by the movement's control order.In fact, the impact is more significant among micro-enterprises than its larger counterparts.Entrepreneurs experience business cancellation or closure and reduced income due to the closure of several supporting sectors such as retails and transportation.There is still a lack of study on the impact of a pandemic outbreak on microenterprises in developing countries, especially in relating to business continuity and recovery strategy.It is crucial to explore how micro-entrepreneurs experience crisis and what decision they make for business survival.This study represents the perspectives of two micro-entrepreneurs in the rural area of Sabah, about their business continuity strategy during movement control order.The results of unstructured phone interviews provide insights on business survival approach and recovery plan of micro-enterprises during and after a crisis.This study will hopefully contribute towards the creation of effective support mechanisms through associated entrepreneurial development organizations for micro -entrepreneurs to thrive during and after a crisis.