Managing resilience of micro, small and medium enterprises (MSMEs) during COVID-19: analysis of barriers

Abstract

Purpose

Micro, small and medium enterprises (MSMEs) are facing major difficulties with working capital, need of digitalisation and lack of skilled workforce during this crisis situation. Managing resilience post pandemic is again a huge challenge for MSMEs. Therefore, the main objective of the study is to identify the critical barriers for recovery of MSMEs from the pandemic outbreak and recommending potential solutions for avoiding vulnerabilities.

Design/methodology/approach

The most significant barriers, which will impact MSMEs resilience issues are extracted from vast literature review, discussed with nine experts from MSMEs and further categorised into organisational, operational and technical barriers. Best–worst method (BWM) has been used to find the importance rating of barriers for developing resilience in MSMEs.

Findings

It can be observed that the organisational barriers (0.507) are the most significant, followed by operational barriers (0.300) and then, technological barriers (0.192). Liquidity crunch and inadequate technical skills of employees are the most significant barriers for MSMEs resilience during COVID-19, whereas fluctuation in input cost, unavailability of containers on time and decreased process efficiency are the least significant barriers for recovering MSMEs post COVID-19.

Practical implications

Findings imply that MSMEs should try to overcome major barriers such as resource constraints, lack of skills and knowledge and inefficient inventory planning.

Originality/value

Findings of study will be of immense use for MSMEs in efficient management of operations and in developing resilience during uncertain business environment.

Citation

Gupta, A. and Kumar Singh, R. (2023), "Managing resilience of micro, small and medium enterprises (MSMEs) during COVID-19: analysis of barriers", Benchmarking: An International Journal, Vol. 30 No. 6, pp. 2062-2084. https://doi.org/10.1108/BIJ-11-2021-0700