Negative Effects, Advantages and Opportunities arising from Covid-19 for Family Business

  • Merita Bakiji
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  • Merita Bakiji

    Student of Master of Business Administration at South East European University, India.

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Abstract

What is familiar to us so far is the fact that any pandemic situation causes firms to face difficult challenges in that complex and changing environment. Every crisis that has arisen has affected the business model of firms with which every business has tried to analyze and adapt to the new dynamics. This is confirmed by various evidence which confirm the negative impact that a crisis brings on the operation and operation of a business regardless of the size or capacity of the firm. The spread of any crisis, be it caused by COVID-19 challenges many firms, even family firms which compared to other business firms are more resilient to risk. According to some authors, this is because family firms maintain their success as a result of combining tradition and innovation and this makes them more resilient and flexible compared to large firms. As we consider the impact of COVID-19 on entrepreneurial business models, we see an exogenous extreme shock and its immediate and negative impact on existing businesses. The coronavirus, in addition to the negative effect, also has some advantages and offers several opportunities for specific sectors which will be elaborated on in the continuation of this research. So the COVID-19 pandemic brings changes but also opportunities. Therefore, the firms that have proven successful and survived the recent crisis are precisely those firms that have changed the strategy and the course of operation of the activity by being oriented towards the market and entrepreneurship.

Type

Research Paper

Information

International Journal of Law Management and Humanities, Volume 5, Issue 4, Page 951 - 957

DOI: https://doij.org/10.10000/IJLMH.113390

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This is an Open Access article, distributed under the terms of the Creative Commons Attribution -NonCommercial 4.0 International (CC BY-NC 4.0) (https://creativecommons.org/licenses/by-nc/4.0/), which permits remixing, adapting, and building upon the work for non-commercial use, provided the original work is properly cited.

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