Restarting MSMEs and start-ups post COVID-19: a grounded theory approach to identify success factors to tackle changed business landscape

ABSTRACT

Purpose: Small businesses and start-ups have started to reopen post coronavirus disease 2019 (COVID-19) lockdowns but are facing numerous challenges mainly due to changed customer preferences and the need to fine-tune the business models. This research aims to identify the important aspects that start-ups need to focus on, as they weather the COVID-19 pandemic storm. Design/methodology/approach: Research uses constructivist grounded theory methodology to analyse data collected through in-depth semi-structured interviews with entrepreneurs and senior employees at start-ups. A conceptual model based on nine categories impacting a start-up’s performance is investigated. Interview memos are thematically analysed to identify repeated ideas, concepts or elements that become apparent. Findings: Study reveals that employees’ and customers’ safety, prudent cost management and online presence/doorstep services are key for start-ups to succeed today's changed business landscape due to COVID-19. Practical implications Findings act as a practical guide for start-ups in setting mechanisms, optimizing operations and fine-tuning strategy to address COVID-19 challenges. Start-ups are advised to evaluate the implications of the three findings on their respective businesses to successfully tackle the challenges posed by COVID-19. Originality/value This research, being cognizant of a start-up’s unique characteristics and nuances, takes a fresh approach to identify key aspects that start-ups need to focus on and fine-tune in the wake of COVID-19. The paper enriches scientific research of understanding impact of COVID-19 on organizations by specifically surfacing how start-ups can learn and adapt by knowing how other start-ups are surviving today. © 2022, Emerald Publishing Limited.