Adaptation of russian small business to COVID-19 pandemic shocks: the first evidence of a longitude

Using the data of two waves of the longitudinal project started by the ‘Public opinion’ Foundation (July - November 2021, initial N = 750 people), the dynamics of strategies and factors of Russian small business’ adaptation to the shocks caused by the COVID-19 pandemic are examined. It is shown that: (1) assessment of the situation in the economy and in their own business correlates with the respondents’ business strategy - entrepreneurs with the growth strategy are more often positive about the general economic situation than those who are focused on stability or surviving. (2) The motivation to do business affects the assessment of the situation and the response to it. Those who conduct business for the purpose of self-fulfillment more often than others assess the state of their business affairs positively, while those who conduct business out of necessity more often evaluate it negatively. (3) Depending on the change of the current income, small entrepreneurs can quickly change the strategy, whereas the reduction in current income affects the change in strategy more strongly than their increase: entrepreneurs with decreasing business income are more likely to change the strategy to a more conservative one (“stability” or “survival”), while income growth to a lesser extent leads to a change in strategy to a more active one (“development”).

small business, COVID-19 pandemic, adaptation strategies, Russia, longitude