The Impact of the Pandemic on the Economic Development about Small and Medium Sized Businesses

  • Altynbek ZHAKUPOV L.N. Gumilyov, Eurasian National University, Kazakhstan
  • Assylkhan YESSILOV Kazakh University of Technology and Business, Kazakhstan
  • Alibek YELEMESSOV Pavlodar Pedagogical University, Kazakhstan
  • Nargiz ISMAILOVA Abay Myrzakhmetov Kokshetau University, Kazakhstan

Abstract

The article substantiates the use of a systems approach to the processes about business model switching in small businesses, as this approach was not previously demanded before the pandemic. In this regard, it is concluded that the study of strategic shifts made by small businesses in different segments of the economy is an important new stage in the development of the systems approach.


This paper proposes adapting the matrix approach to distinguish crisis states for small businesses according to the properties of their business models: divergent to crisis; crisis-resistant; adaptive; temporarily limited; externally supported; true bankruptcy.


A standardized decision-making procedure for digitalization has been developed, and the challenges that small businesses need to address when choosing a digitalization scenario as the minimum necessary sequence of actions, each element of which is necessary to realize the digital transition, have been identified.

References

[1] Braun, B. 2015. Preparedness, crisis management and policy change: The Euro area at the critical juncture of 2008-2013. The British Journal of Politics & International Relations, 17: 419-441.
[2] Buklemishev, O. 2020. Coronavirus crisis and its effects on the economy. Population and Economics, 4(2): 13-17. DOI: https://doi.org/10.3897/popecon.4.e53295
[3] D’Amato, A. 2020. Capital structure, debt maturity, and financial crisis: Empirical evidence from SMEs. Small Business Economics, 55(1): 1-23. DOI: https://doi.org/10.1007/s11187-019-00165-6
[4] Demarest, G., Scott, J. 2016. Architect’s Guide to Implementing a Digital Transformation. Springer,
[5] Demirgüç-Kunt, A., Peria, M.S.M., andTressel, T. 2020. The global financial crisis and the capital structure of firms: Was the impact more severe among SMEs and nonlisted firms? Journal of Corporate Finance, 60. DOI: https://libkey.io/10.1016/j.jcorpfin.2019.101514
[6] Hui, D.S. et al. 2020.The continuing epidemic threat of novel coronaviruses to global health – the latest novel coronavirus outbreak in Wuhan, China (англ.). International Journal of Infectious Diseases: journal, 91: 264 - 266. DOI: 10.1016/j.ijid.2020.01.009
[7] Levashenko, A.D., and Koval, A.A. 2020. Measures of financial and non-financial support for SMEs under the COVID-19 situation. Economic Development of Russia, 27(5): 66-70. DOI:https://dx.doi.org/10.2139/ssrn.3629597
[8] Medaković, V. and Marić, B. 2019. Crisis Management in SME's: Empirical Study in Bosnia & Herzegovina. Annals of the Faculty of Engineering Hunedoara, 17(3): 183-186. Available at: https://annals.fih.upt.ro/pdf-full/2019/ANNALS-2019-3-30.pdf
[9] Morrish S.C., and Jones, R. 2020. Post-disaster business recovery: An entrepreneurial marketing perspective. Journal of Business Research, 113: 83- 92. DOI: https://doi.org/10.1016/j.jbusres.2019.03.041
[10] Mustajab D., et al. 2020. Working From Home Phenomenon as an Effort to Prevent COVID-19 Attacks and Its Impacts on Work Productivity, The International Journal of Applied Business, 4(1): 13-21.
[11] Nenonen, S., and Storbacka, K. 2020. Don’t adapt, shape! Use the crisis to shape your minimum viable system – And the wider market. Industrial Marketing Management, 88: 265-271.
[12] A.N. Ryakhovskaya, A.N., Kovan, S.E. 2018. Anti-crisis management: theory and practice. Ed. KNORUS
[13] Ritter, T., and Pedersen, C.L. 2020. Analyzing the impact of the coronavirus crisis on business models. Industrial Marketing Management, 88: 214-224. DOI: https://doi.org/10.1016/j.indmarman.2020.05.014
[14] Seetharaman, P. 2020. Business models shifts: Impact of Covid-19. International Journal of Information Management, 54(102173). DOI: 10.1016/j.ijinfomgt.2020.102173
[15] Taleb, N.N. 2014. Antifragility How to Profit from Chaos. M.: KoLibri, Azbuka-Atticus.
[16] Tikhonova, M.A. 2020. Anti-Crisis Choice for Small Business. Today and Tomorrow of the Russian Economy, No 99-100.
[17] Vojtkoa, V., Rol, L., and Plevn, V. 2019. System dynamics model of crises in small and medium enterprises. Economic Research, 32(1): 168-186. DOI: https://doi.org/10.1080/1331677X.2018.1552176
[18] Zimovets, A.V., Sorokina, Y.V., and Khanina, A.V. 2020. Analysis of the impact of the COVID-19 pandemic on enterprise development in the Russian Federation. Economics, Business and Law, 10(5): 1337- 1350.
*** A review of international economic and population support practices in response to the coronavirus pandemic in Armenia, China, Denmark, Finland, France, Germany, Italy, Japan, Kazakhstan, the Netherlands, South Korea, Spain, Sweden, the United Kingdom, and the United States / Edited by O.V. Sinyavskaya. Institute for Social Policy. Institute for Social Policy HSE. M.: NAU HSE, 2020.
*** IMF. Economic Policies for the COVID-19 War. Available at: https://blogs.imf.org/2020/04/01/economic-policies-for-the-covid-19-war/
*** Order No. 2 of the Minister of Health of the Republic of Kazakhstan dated 8 January 2018 "On Amendments to Order No. 450 of the Minister of Health of the Republic of Kazakhstan dated 3 July 2017 "On Approval of the Rules of Emergency Medical Care in the Republic of Kazakhstan";
Published
2023-06-26
How to Cite
ZHAKUPOV, Altynbek et al. The Impact of the Pandemic on the Economic Development about Small and Medium Sized Businesses. Theoretical and Practical Research in Economic Fields, [S.l.], v. 14, n. 1, p. 146 - 163, june 2023. ISSN 2068-7710. Available at: <https://journals.aserspublishing.eu/tpref/article/view/7869>. Date accessed: 27 may 2024. doi: https://doi.org/10.14505/tpref.v14.1(27).12.