The current financial and economic crisis is considered by many economists the severest recession since the 1930s. The effects of the crisis are numerous; fall of private consumption, rise of unemployment, credit reduction and rising social distress. Within this context, entrepreneurs’ role is becoming central, given that entrepreneurial activity is a main driver of economic recovery and growth by contributing to job creation and social progression. Nevertheless, the volatile and uncertain environment created by the crisis can limit new venture creation and make more difficult the survival of entrepreneurial firms, especially in economies that have suffered a severe economic slowdown during the crisis, such as Spain and Greece.
In light of these, the present study has set the following objectives:
- To explore entrepreneurs’ perceptions of the current economic crisis and to identify the different barriers that entrepreneurs perceive as hindering of their businesses’ functioning. In this way, both future and current entrepreneurs could be more properly supported and solutions to the crisis could be sourced using the entrepreneurial route.
- To examine alternative strategies to respond to the crisis based on entrepreneurs’ suggestions.
Data Methods
This study was carried out in the north-eastern Spanish region of Catalonia, one of the most industrialised regions of the country. Data were collected during focus groups with entrepreneurs where the main topic was the economic crisis and how it affects their perceptions and their response to the recession. In total, 8 focus groups were conducted and 205 entrepreneurs participated. The sample consisted of companies from different sectors, so that it would be more representative of the sector variety in the region.
Meetings’ duration varies between ninety and one hundred and twenty minutes. All meetings were tape-recorded and transcribed. The analysis was based on the transcriptions made, together with the notes that the authors took as observants/ participants in the meetings.
This study was conducted together with the Provincial Business Confederation, whose calling permitted to gather the focus groups.
Results/Expected Results
The findings confirm that the crisis is perceived negatively by the Spanish entrepreneurs creating an uncertain environment and leading to sales uncertainty, revenues uncertainty and difficult access to financing. Nevertheless, there are also structural factors that worsen market conditions that are not related to the crisis. The lack of trained workforce and limitations in existing infrastructures are some of the examples.
Nevertheless, the entrepreneurs also suggest different strategies that could strengthen their firms, allow them to survive through the crisis and grow. For instance, they propose the formation of strategic alliances, the sharing of resources and knowledge and the diversification of their business activities into new markets. They also point out the need to innovate and create more value for the customer.