European SMEs amidst the COVID-19 crisis: assessing impact and policy responses

Juergensen, J., Guimón, J. and Narula, R. ORCID: https://orcid.org/0000-0002-4266-2681 (2020) European SMEs amidst the COVID-19 crisis: assessing impact and policy responses. Economia e Politica Industriale, 47 (3). pp. 499-510. ISSN 0391-2078 doi: 10.1007/s40812-020-00169-4

Abstract/Summary

This paper consider how the COVID-19 pandemic has challenged European small- and medium-sized enterprises (SMEs) in the manufacturing sector, and draw suggests policy implications. The sudden onslaught of the pandemic has acted as an economic shock, and we consider how it is likely to affect different types of manufacturing SMEs. We distinguish between immediate effects, a result of the almost-simultaneous lockdowns across Europe and its major trading partners, and longer-term implications for both SMEs and the global value chains where they are inserted. In the shorter run, most SMEs have faced logistical challenges in addition to demand disruptions, although the severity has differed across firms and industries. We argue that in the longer-term, there will be different challenges and opportunities depending on the type of SME. Policy interventions will also need to be sensitive to the different types of SMEs, rather than adopting a one-size-fits-all approach. The policy mix will need to shift from its initial focus on the survival of European SMEs in the short term, towards a more structural and longer-term approach based on promoting their renewal and growth through innovation, internationalization and networking.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/91557
Identification Number/DOI	10.1007/s40812-020-00169-4
Refereed	Yes
Divisions	Henley Business School > International Business and Strategy
Publisher	Springer
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