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In: Finance

It is true that entrepreneurship thrives on uncertainty because small businesses around the world have handled...

  1. It is true that entrepreneurship thrives on uncertainty because small businesses around the world have handled the COVID-19 crisis better than larger firms. Discuss

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Expert Solution

Yes, it can be said that this smaller businesses around the world have handled the covid-19 crisis better than larger firms because smaller interprises are basically managed by entrepreneurs who are completely and solely responsible for the performance of their businesses and they are also less exposed to the the larger amount of market share and they are also risk lovers rather than risk averse.

So, entrepreneurs are generally trying to take more risk at such adverse economics in areas because there is a void which is left out in the economy due to shutdown of major business which are basically foreign oriented and these small entrepreneur trying to accomplish a larger amount of market share and trying to get adapted to new techniques like digital conduct of Business and less exposure to the physical environment so it can be said that these smaller entrepreneurs are trying to mitigate their risk in a better way and they are also managing it better than the larger companies because these are the companies Which are having their business spread out in different countries and they are finding it highly difficult to combine it all together.

so it can be said that the smaller businesses are handling this crisis better than larger businesses due to their enterprenuer management and responsibility fixation and the risk loving approach of their entrepreneurs who are trying to exploit an opportunity in covid-19.


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