Business crisis against COVID-19 pandemic background

The coronavirus infection COVID-19, which swept the world in early 2020, has caused crisis phenomena in all economic segments. Small and medium-sized businesses appeared the most affected. Based on the study and generalization of analytical materials and approximation of statistical data, the most significant problems of both economic and socio-psychological level affecting the business community were identified, solving them can improve the efficiency of the labor activity. The crisis of entrepreneurship is a reaction of society to the changes that took place in the business environment, it is associated with contradictions arising between the need to defeat the COVID-19 pandemic and the eagerness to save small and medium-sized businesses. It has been inferred that the intermediate consequences of the COVID-19 pandemic have intensified the already existing negative effects of the crisis in the labor sector, which is most clearly manifested in the regional context. The dynamics of changes in the number of unemployed in the Russian Federation as a whole and in the Rostov region in particular is illustrated. The graph of changes in the number of registered small and medium-sized businesses in Russia is presented. Solving the problem requires a significant adjustment of the actions taken at the government level aimed at overcoming crisis situations both in the field of employment and unemployment, and support for entrepreneurship in general. Measures to solve the problems of the entrepreneurs and their employees have been proposed.

The Effect of ESG Activities on Financial Performance during the COVID-19 Pandemic—Evidence from Korea

This study examines the effect of a firm’s environmental, social, and governance (ESG) activities on its financial performance during the acute uncertainty caused by the COVID-19 pandemic. Due to the COVID-19 pandemic, most Korean firms suffered unexpected difficulties in their business activities in early 2020, and their financial performance deteriorated significantly. The purpose of this study is to empirically analyze whether a firm’s ESG activities affect its financial performance during a business crisis. The results show that, in the first quarter of 2020, when the impact of the COVID-19 pandemic occurred, firms’ earnings dropped significantly; however, we found that the higher the performance of ESG activities, the smaller the decline in earnings. The results imply that, in an environment of uncertainty, the performance of a firm’s ESG activities is reflected in its financial outcomes. This result implies that trust and bond between firms and stakeholders, as formed through investments in social capital, are rewarded when the overall level of sustainability in markets is negatively impacted. In addition, our results suggest that the performance of nonfinancial activities is useful information for stakeholders’ decision making in relation to market uncertainty.

A New Strategic Business Expectancy for MSME Sustainability: The Impact of Uncertainty During the COVID-19 Pandemic

The COVID-19 pandemic has led to a significant economic crisis. Production activities have stopped, people’s purchasing power has decreased, and the fall in the stock market has led to uncertainty. MSMEs need to maintain business continuity during a pandemic to exist after the pandemic is over. The purpose of this research was to analyze the impact of COVID-19 on MSMEs and to suggest several strategies to maintain business continuity. Qualitative research methods and a thematic analysis approach were used to examine themes and patterns. Most interview participants said they had been strongly affected by this pandemic. Several entrepreneurs assessed how the emerging needs which related to the COVID-19 business crisis could affect their business and how to take appropriate action. Keywords: Business Strategy, COVID-19 Impact, Indonesia Entrepreneurs, Small Business

Predicting the Risk of Insolvency in Small Enterprises: Critical Analysis of the Predictive Model Associated with the New Italian Code of Business Crisis

Numerous studies have been conducted to verify whether, and under what conditions, Altman's Z-Score model can also be applied to unlisted, non-US companies. The response of numerous studies confirms the substantial validity of this algorithm. However, in Italy, the legislator, in launching the new Business Crisis Code in 2019, in adherence to an important European recommendation, did not adopt the aforementioned model but approved a different one. In order to find a justification for this choice, the present work intends to test the effectiveness of the warning indices that will be adopted in Italy by comparing them with the Altman predictive model in the Z'' Score version. To this end, the two models were applied to the balance sheets of 789 Italian firms that went bankrupt in the period 2016-2018 and, at the same time, to a control sample, equal in number and composition, of non-bankrupt firms. The results of this analysis produced two distinct findings. The Italian method proved to be less effective in predicting a crisis than the Z'' score. but more effective in determining whether a firm is truly healthy. This evidence is useful to confirm once again the effectiveness of the Z'' Score in a non-American context but also, and above all, to provide suggestions to the Italian legislator so that it can refine the predictive model currently in force.

Organizational culture as an important factor of enterprise crisis management in the conditions of the Covid-19 pandemic

The COVID-19 pandemic undoubtedly has serious socio-economic effects. The whole world is going through a unprecedented crisis with all the characteristics of unpredictability and difficult prevention. Today, there is practically no organization that has not been affected by this crisis. During a period of great uncertainty, it is very important that organizations properly understand the impact of this threat on internal and external stakeholders. Only companies that are able to manage the crisis effectively with an adequate organizational culture and leadership can maintain a competitive advantage. Accordingly, it is necessary to develop and support an ethically oriented organizational culture that will strongly support ethical standards. The proactivity and ethical approach of this type of organizational culture contributes to mitigating the negative effects of the crisis and provides adequate support to employees. Based on the above facts, the basic motive of the research was to determine the extent to which an ethically oriented organizational culture is supported in the company during a period of severe business crisis and uncertainty. The research is based on the answers collected by a standardized and structured survey questionnaire on a sample of 100 respondents.

Social responsibility of agrocomplex enterprise/companies in times of crisis

The paper points out the maintenance of economic activity and stability of production even in the difficult conditions of the global crisis as a consequence of the pandemic. Especially in the conditions of a long-lasting crisis, caused by a pandemic of the virus, the business or social responsibility of companies in the agro-industrial sector of the economy is observed. The aim of this paper is that, in the conditions of business crisis, social responsibility represents the optimal attendance of companies from the observed activity, and thus to contribute to the sustainability of economic development. The main goal of the paper is that, even in the conditions of the great business crisis - caused by covid 19 virus, in all economic branches and especially food producers, the socially responsible behavior of companies in the agricultural complex does not disappear. The subject of the research is the business of the company "Agroprogres" i.e. the way and model of applying the concept of social responsibility in the conditions of a great and general business crisis and the adaptability of the company from the agro complex to new circumstances. Pursuant to the subject of the research the target group of employees was selected and a survey was conducted from the aspect of the level of social responsibility of the company. Analyzing the business of a particular company, many scientific methods were used to prove the basic hypothesis: the crisis caused by the pandemic did not reduce social responsibility during its duration, i.e. business in difficult conditions.