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dc.contributor.authorCowling, Marc
dc.contributor.authorBrown, Ross
dc.contributor.authorRocha, Augusto
dc.date.accessioned2020-11-13T16:46:56Z
dc.date.available2020-11-13T16:46:56Z
dc.date.issued2020-08-04
dc.identifier.citationCowling, M., Brown, R. and Rocha, A., (2020). 'Did you save some cash for a rainy COVID-19 day? The crisis and SMEs'. International Small Business Journal: Researching Entrepreneurship, pp. 1-12.en_US
dc.identifier.doi10.1177/0266242620945102
dc.identifier.urihttp://hdl.handle.net/10545/625383
dc.description.abstractAs COVID-19 spreads across the globe, a common public policy response has been to enforce the temporary closure of non-essential business activity. In some countries, governments have underwritten a proportion of the wage income for staff forced to furlough or broadened their welfare systems to accommodate newly laid off workers or small business owners. While these actions are helpful, they do not explicitly address the lack of sales trading activity on business income and cash balances. In commentary, we identify what types of businesses have been increasing their cash holdings in the lead up to COVID-19 as an indication of what types of small and medium-sized enterprises (SMEs) are most at risk if the lockdown extends for a protracted period of time. We find that only 39% of the of businesses were bolstering their cash balances leading up to COVID-19 which suggests that 61% of businesses may run out of cash, including 8.6% that had no retained earnings whatsoever with micro firms at particular risk. The importance of precautionary saving for SMEs is critical to enhance resilience when Black Swan events occur.en_US
dc.description.sponsorshipN/Aen_US
dc.language.isoenen_US
dc.publisherSAGEen_US
dc.relation.urlhttps://journals.sagepub.com/doi/10.1177/0266242620945102en_US
dc.relation.urlhttp://hdl.handle.net/10023/20609en_US
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/*
dc.subjectCash balancesen_US
dc.subjectCOVID-19en_US
dc.subjectprecautionary savingen_US
dc.subjectrisken_US
dc.subjectSMEsen_US
dc.titleDid you save some cash for a rainy COVID-19 day? The crisis and SMEsen_US
dc.typeArticleen_US
dc.identifier.eissn1741-2870
dc.contributor.departmentUniversity of Derbyen_US
dc.contributor.departmentUniversity of St Andrewsen_US
dc.identifier.journalInternational Small Business Journal: Research Entrepreneurshipen_US
dcterms.dateAccepted2020
dc.author.detail786785en_US


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Attribution-NonCommercial-NoDerivatives 4.0 International
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivatives 4.0 International