Small, but Mighty: Icelandic business environment before and after the financial crisis of 2008

Abstract

In 2008, Iceland resembled the lost land of Atlantis that was steadily going under the water at an increasing pace. What could have become a Plato’s legend that turned to reality resulted in a different storyline. Even when events turn to a force majeure, and the magnitude of the turbulence reaches a level of a catastrophe, it is the human factor, which, despite often being a contributing factor in causing the chaos, can also play a vital role in preventing the irreversible consequences. What potentially could be called a miracle is Icelanders’ resilience and ability to revert the order. This chapter lays out the story how the crisis shaped the business environment of Iceland in relation to the social aspect that so far has remained less unpacked in the literature covering the crisis.