Navigating the New Normal: How Entrepreneurial Orientation and Personal Characteristics Influence MSME Performance during the COVID-19 Crisis

Abstract

The negative impact of COVID-19 has spread to almost all aspects of life around the world. Along with changing quarantine policies in different countries, attention is now focused more on how to deal with the "current normal" rather than looking for the "next normal" in doing business, with the aim of achieving sustainable development. This research highlights the challenges and opportunities faced by micro, small and medium enterprises (MSMEs) during the COVID-19 crisis. Within the conceptual framework, this research provides an overview of trends in times of crisis, based on various quantitative reports. The population in the study is MSMEs. The sample in this study was 135 respondents. The main message of this research is the current direction of travel of MSMEs, which not only focuses on maintaining profitability post-crisis, but also at this time. This research emphasizes several implications for adaptation, with the aim of reducing the impact of the pandemic on efforts to improve the ability of MSMEs to co-create value with consumers. Current and future implications are debated in this study. The COVID-19 pandemic has accelerated the digitalization of MSMEs globally, forcing them to adopt digital technologies to sustain operations. However, challenges such as uneven access to financing and digital infrastructure remain a major concern. This article emphasizes the need for policy support through financial incentives, training programs, and information technology infrastructure to increase MSMEs' resilience in the face of crisis and foster innovation. The discussion provides insights into adaptation strategies that are crucial to rebuilding and strengthening the MSME ecosystem in the future.