We discuss the impact of a Covid-like shock on a simple toy economy, described by the Mark-0 Agent-Based Model that we developed and discussed in a series of previous papers. We consider a mixed supply and demand shock, and show that depending on the shock parameters (amplitude and duration), our toy economy can display V-shaped, U-shaped or W-shaped recoveries, and even an L-shaped output curve with permanent output loss. This is due to the existence of a self-sustained "bad" state of the economy. We then discuss two policies that attempt to moderate the impact of the shock: giving easy credit to firms, and the so-called helicopter money, i.e. injecting new money into the households savings. We find that both policies are effective if strong enough, and we highlight the potential danger of terminating these policies too early. While we only discuss a limited number of scenarios, our model is flexible and versatile enough to allow for a much wider exploration, thus serving as a useful tool for the qualitative understanding of post-Covid recovery. We provide an on-line version of the code at this https URL .

V-, U-, L-, or W-shaped recovery after COVID? Insights from an Agent Based Model

PurposeThe purpose of this paper is to examine the crisis faced, strategies adopted, barriers for recovery and the future outlook by the operators of family-owned small foodservice business firms in responses to COVID-19. The COVID-19 pandemic has unfolded unprecedented challenges, severely disrupted the family-run small foodservice business units and often put them on the brink of closure of business.Design/methodology/approachThe methodology adopted is a qualitative research approach. The data for the research is collected through a semi-structured interview. The data was collected from the 13 family-owned foodservice providers. The data is collected through a semi-structured telephone interview as there is a restriction of travel between different regions.FindingsThe finding reveals that small family-operated foodservice firms faced multiple challenges, including threat for existence, the pressure of fixed cost, feeling unethical, financial instability, uncertainty on future and feeling of loss of goodwill with lenders.Originality/valueThe current research work is the first to discuss the impact of Covid-19 on small family-owned food services businesses in an Indian context.

We are in survival mode: how family-owned small foodservice firms in India responded to the Covid-19 pandemic

The U.S. financial crisis has made its upshots on both developed and developing economies of the world. However, India did not face a full - blown recession, but only experienced an economic deceleration, which is normally considered as a temporary phenomenon. Analysis of the financial parameters of corporate India revealed intersectoral as well as intrasectoral differences among them in respect of their financial fundamentals during the period of crisis, which could be attributed to many factors. The Banking sector found an opportunity for growth during the period of crisis, the credit of which goes to wise and judicious policies of the central bank of the country. The Automobile and construction sector were hit most adversely by the crisis due to their high capital intensive nature and stringent measures taken by the lending institutions by cutting back of credit to individuals for adding luxuries to their personal lives. Our IT industry is more exposed to the U.S. and European markets; hence, the financial crisis in these advanced economies affected the export earnings of this sector. However, sharp depreciation of the Rupee helped them to compensate in aggregate what they lost due to the crisis in the global market. Domestic market orientation and not being very capital-intensive are among the factors that insulated the FMCG sector from the downturn. The degree of shock exerted by the global financial turmoil on the performance of the Indian corporate sector was also not the same. While some companies under a particular sector were severely hit by the crisis, fundamentally strong companies could unshackle themselves from it.

The Global Financial Crisis and Performance of the Indian Corporate Sector: A Firm Level Analysis

https://doi.org/10.1016/j.heliyon.2023.e15004

Responses to COVID-19, small and medium enterprises’ corporate social responsibility and psychological capital of employees: From the mediating perspective of affective commitment

PurposeThis study aims to investigate how organizations from different sectors interpret the meaning of business continuity management (BCM) in the light of the COVID-19 pandemic.Design/methodology/approachA survey was conducted to capture the views of organizations across five different sectors. The sample consisted of ten senior managers; two from the banking sector; two from the supply chain sector (agricultural and food supply chains); two from the tourism sector; two from the services sector; and two from the higher education sector. An interviewer-administered questionnaire was used to collect the data. One manager from each sector represented a local business/enterprise and the other represented an international business/enterprise.FindingsIt was found that different organizations/businesses understood BCM differently. Therefore, a variety of interpretations have been obtained.Practical implicationsThis study sheds light on how different organizations understand BCM in times of crisis, such as the COVID-19 pandemic. By understanding the different interpretations, it becomes clearer whether or not these organizations have applicable business continuity plans in place.Originality/valueThis is the first study to investigate the different interpretations of the meaning of BCM across different business sectors. The majority of the existing studies on BCM discuss the process from the perspective of a single business or sector. The study was conducted during the COVID-19 pandemic, a period that witnessed prolonged and critical disruptions facing almost all businesses and organizations and which threatened the survival of some of them.

Interpretations of business continuity management in the light of COVID-19

Purpose The novel coronavirus (COVID-19) leaves Indian business teetering on the edge of survival. This paper aims to set out to assess the impact of the pandemic shocks on the small and medium business segments in India. The research also explores the strategies that potentially take the segments back to recovery and growth. Design/methodology/approach The findings draw on the perspectives of academic and business people, and the authors use linear and nonlinear regression modelling under three recovery scenarios to support our arguments. Findings Evidence suggests that the shocks to business are manifold and the severity of most of the issues will aggravate as the recovery prolongs. Practical implications The paper explains the rationale of realistic strategies and compares its effects across potent recoveries. The findings are useful for both academics and business and relates to the strategic decisions that would be taken by small and medium enterprises to expedite recovery from the crisis. Originality/value The research is unique in surveying the academics and entrepreneurs about the impact of COVID-19 on Indian business.

Saji Thazhungal Govindan Nair

Papers

Business adversity during the COVID-19 crisis and beyond: the way forward for small and medium enterprises in India