The Effect Of The Covid-19 Pandemic On Austin Small Businesses: Analyzing Strategic Agility, Organizational Culture, and Optimism in Austin SMEs

This study examines the negative impact of the COVID-19 pandemic on small and medium-sized enterprises (SMEs) in Austin, Texas. Fifty businesses were surveyed, and eight were interviewed. Research showed that 47% of SMEs in Austin were uncertain of their survival, 48% had to close temporarily, and 83% suffered financially. This paper collects data regarding organizational agility and culture in the literary review. This study furthers research into the relationship between strategic agility and financial success in times of uncertainty. The survey findings suggest that businesses that exhibited the traits described in the Strategic Agility Classification model were more successful during the COVID-19 pandemic. Specifically, the SMEs able to understand the economy and their industry, identify changes in the market, adapt services and operations, and maintain their values demonstrated 19.4% increased financial success during the COVID-19 pandemic. The ability to identify market changes and maintain business values were the main determining factors for financial success. The study also found that SMEs in Austin are increasingly optimistic about the future. Optimism levels rose from 39% in 2020 to 53% in 2023, still below the national average of 71% measured in 2019. The sentiment around the City of Austin’s response to COVID-19 was neutral, requiring further research to clarify areas where SMEs felt the city could improve. Overall, the findings of this study suggest that businesses with higher levels of organizational agility and cultural values were more successful during the pandemic, and SMEs in Austin remain cautiously optimistic about the future.Managemen