Resilience and coping with a long-term crisis: The cases of Cypriot and Greek micro and small firms

The purpose of this study is to ascertain factors that enable micro and small firms to cope with the effects of a long-term crisis, and develop a model which guides conceptual understanding. The study’s setting is represented by the global financial crisis and by Cyprus and Greece, two nations severely affected. On-site, unstructured, face-to-face interviews were conducted among 135 micro and small firm leaders. 16 different coping factors were identified as central to participants, resulting in the emergence of four key dimensions. Three dimensions, self-initiative, financial acumen, and human attributes are associated with entrepreneurs’ skills, initiatives, passion, and networks, while one dimension, individual-firm advantage, considers firms’ and individuals’ valuable assets and resources, namely, image/reputation, quality, or location. Almost two-thirds of participants recognised a lack of collaboration beyond their suppliers within their industry. Several intergroup differences were revealed, including Cypriot participants’ higher optimism concerning their firms’ future. The study responds to calls for research that illuminates the understanding of firms’ ability to overcome inadequacies imposed by the socioeconomic environment in which they operate. To this end, a theoretical framework emphasising the vital significance of four dimensions is proposed. Apart from their conceptual insightfulness, the dimensions identify clear associations with resilience and coping, and can therefore be of practical value to micro-small sized-firms and their respective industry