SMALL AND MEDIUM-SIZED BUSINESSES: TACKLING COVID-19 CHALLENGES BY CHANGING BUSINESS-MODELS

Автор(и)

  • O. V. Poliarus Kharkiv National Automobile and Highway University, Ukraine
  • I. L. Nazarenko Український державний університет залізничного транспорту, Ukraine

DOI:

https://doi.org/10.18664/btie.72-73.280443

Ключові слова:

Small Business, SMEs, COVID-19, Survival, Business Models, Template of Business Model Change for SMEs

Анотація

In this paper the surveys conducted on small- and medium-sized enterprises around the world (including Ukraine) have been analyzed. SMEs face a  bigger risk than larger firms affected by COVID-19 pandemic. Although governments support them to a certain extent, SMEs are trying to survive the pandemic by themselves. It is true especially for Ukraine, where SMEs are an important element of economy (as they account for 77,9 percent of employment, generate 64,4% of share value added and 20 percent of GDP), but they do not have much hope for government help and do almost without it. Therefore they cut their costs, make employees  redundant, seek other ways to approach their customers despite severe COVID restrictions, and so on. They also adjust their business models to the new harsh environment, but they need guidance in this realm, how to make it correctly and efficiently.
Having analyzed 4 types of solutions offered by R. Ackoff, we arrived at the conclusion of using one of them for SMEs - Solution, to comply with the principles of applied systems analysis. Absolution appeared ineffective, Resolution – not effective enough, and Dissolution – inapplicable for dissolving problems caused by COVID-19.
For adjusting business-models we suggest owners of SMEs use Business Model Canvas by A. Osterwalder as a simple and comprehensive one. To the Canvas we added influence lines
to show that some blocks influence mainly Cost structure, some others – mainly Revenue streams, and Value proposition, both of them. It could be said that Cost Structure is mainly
affected from the supply side, and Revenue streams – from the demand side.
The Template of Business Model Change for SMEs has bees worked in this study. It encompasses 2 levels: the first level – Analysis (the main points which SMEs owners should analyse first) and the second level – some main solutions which could be developed according to the analysis carried out. We have united 2 blocks devoted to customers into the one  (Customers&Relationships) so that prospective users could better understand these interconnected blocks and making decisions within them. The Template is practically applicable for changing the business models of small and medium-sized enterprises in Ukraine and any other country as well.
The results obtained in the study can be used in further research in this realm.

Біографії авторів

O. V. Poliarus, Kharkiv National Automobile and Highway University

doctor of tech. sciences, professor

I. L. Nazarenko, Український державний університет залізничного транспорту

PhD econ., associate professor

Посилання

COVID-19: The Great Lockdown and its Impact on Small Business (2020). International Trade Centre (ITC), Geneva. Available at:

https://www.intracen.org/publicacion/SME-Competitiveness-Outlook-2020---COVID-19-

the-Great-Lockdown-and-its-Effects-of-Small-Business-en/?langtype=2057 (accessed

03.21).

Coronavirus (COVID-19): SME policy responses (2020). OECD 2020. Available at: https://read.oecd-ilibrary.org/view/?ref=119_119680-di6h3qg i4x&title=Covid-19_SME_Policy_Responses (accessed 01.03.21).

COVID-19 in Ukraine: Impact on Households and Businesses. Analytical report (2020). Available at: https://www.ua.undp.org /content/ukraine/uk/home/library/democratic_g

overnance/covid-19-in-ukraine--impact-on-households-and-businesses.html (accessed

03.21).

Nastroi maloho biznesu suttievo pohirshylysia [Small business sentiment has

deteriorated significantly] (2021). Available at: https://eba.com.ua/nastroyi-malogo-biznesu-suttyevo-pogirshylysya/ (accessed 03.03.21).

Statystychnyi zbirnyk "Diialnist subiektiv velykoho, serednoho, maloho ta mikropidpryiemnytstva", 2019. (2020). Derzhavna sluzhba statystyky Ukrainy. / Za redaktsiieiu Kuznietsovoi M.S. – Kyiv. 363 p.[Statistical bulletin "Activities of large, medium, small and micro enterprises", 2019]. State Statistics Service of Ukraine. / Edited by Kuznetsova MS - Kyiv. Available at: http://www.ukrstat.gov.ua/druk/publicat/kat_u/publ9_u.htm (accessed 24.02.21).

Dykan V.L., Schramenko O.V. (2019). Stratehіchnі orіientyry derzhavnoho rehuliuvannia subiektіv maloho ta serednoho bіznesu [Strategic guidelines for state regulation of small and medium-sized business entities]. In: Strategic Aspects of Managing Enterprise Сompetitiveness in the Digital Economic Space: A Collective Monograph. Kyiv. Pp. 47 – 55. (490 p.).

Obruch Gh.V., Ivanjuta B.L., Zhuravljov K.V. (2018). Problemy i perspektyvy rozvytku malogho ta serednjogho pidpryjemnyctva v Ukrajini [Problems and prospects of development of small and medium-sized enterprises in Ukraine]. Bulletin of Economics of Transport and Industry,

vol.61, pp. 53–62.

Poljakova O.M., Khoroshajeva Je.V. (2017). Socialjna vidpovidaljnistj malogho biznesu jak jogho konkurentna perevagha [Small business social responsibility as its competitive advantage]. Bulletin of Economics of Transport and Industry, vol.60, pp. 33-39.

Tolstova A.V., Kybaljchych S. (2017). Problemy rozvytku malogho biznesu v Ukrajini [Problems of development of small business in Ukraine]. Bulletin of Economics of Transport and Industry, vol.60, pp. 55-62.

Vahner I. M., Demko I.I. (2020). Vplyv COVID-19 na ekonomichnyi rozvytok maloho i serednoho biznesu v Ukraini. [The impact of COVID-19 on the economic development of small and medium-sized businesses in Ukraine]. Bulletin of the University of Banking, vol.1. p. 59–66.

Available at: http://nbuv.gov.ua/UJRN/VUbsNbU_2020_1_10 (accessed 05.03.21).

Nazarenko I.L. (2020). Strategies of small family businesses survival during and after quarantine. Bulletin of Economics of Transport and Industry, vol.69, pp. 92–100.

Biznes ta COVID-19: Vyzhyty ne mozhna pomerty (2020) [Business and

COVID-19: Survive Can't Die]. Federation of Employers of Ukraine. Analytical Center for

Economic and Legal Research and Forecasting. Availableat: https://fru.ua/images/doc/analitics/BUSINESS_AND_COVID-19.pdf (accessed 01.03.21).

Osterwalder A., Pigneur Y. (2010). Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Available at: https://www.strategyzer.com/ (accessed

03.21).

Osterwalder A., Pigneur Y., Bernarda G., and Smith A. (2014). Value Proposition Design: How to create products and services customers want. Published by John Wiley & Sons, New Jersey. 423 p. Available at: https://www.strategyzer.com/(accessed 02.03.21).

Bhasin H. 23 Types of Business Models Examples (2020). Available at:

https://www.marketing91.com/23-types-of-business-models/ (accessed 02.03.21).

50 Types of Business Models – The Best Examples of Companies Using It

(2021). Available at: https://bstrategyhub.com/50-types-of-business-models-the-best-examples-of-companies-using-it/ (accessed 02.03.21).

What Is a Business Model? 54 Successful Types of Business Models You Need toKnow. Available at: https://fourweekmba.com/what-is-a-business-model/#Freeterprise_model (accessed 02.03.21).

Gassmann O., Frankenberger K., Csik M. (2014). The Business Model Navigator: 55 Models That Will Revolutionise Your Business. 2014. – 388 p.

Categorisation of Business Model (2012). Available at: https://mstwits.

wordpress.com/2012/06/14/categorisation-of-business-model-4/ (accessed 04.03.21).

Fielt E. (2013). Conceptualising Business Models: Definitions, Frameworks and Classifications. Journal of Business Models, vol. 1, No. 1 pp. 85-105. Available at: https://www.academia.edu/24520206/Concept ualising_Business_Models_Definitions_Frame

works_and_Classifications (accessed 04.03.21).

Remane G., Hanelt A., Tesch, and Kolbe L.M. (2017). The Business Model Pattern Database —a tool for systematic business model innovation. - International Journal of Innovation Management, vol. 21, No. 1 . 61 pp. Available at: https://www.worldscientific.com/doi/epdf/10.1142/S1363919617500049 (accessed 04.03.21).

Wirtz B. W., Pistoia A., Ullrich S., and Gôttel V. (2016). Business Models: Origin, Development and Future Research Perspectives. Long Range Planning 49, pp. 36-54.

Björkdahl J., Holmén M. (2013). Editorial: Business model innovation – the challenges head. Int. J. Product Development, vol. 18, Nos. 3/4, pp. 213 – 225.

Rojas M.J, Yuste E., Vázquez J.A.and Celaya J. (2020). New business models in the digital age: A dosdoce.com study sponsored by CEDRO. Available at: https://www.dosdoce.com/upload/ficheros/noticias/201504/new_business_models_in_the_dig

ital_age bookmachine_special_edition.pdf (accessed 01.03.21).

Kotarba M. (2018). Digital transformation of business models. Foundations of Management, vol. 10, pp. 123–142. Available at: https://www.researchgate.net/publication/326808621_Digital_Transformation_of_Business_

Models (accessed 04.03.21).

Ahokangas P., Myllykoski J. (2014). The Practice of Creating and Transforming a Business Model. Journal of Business Models, vol. 2, No. 1, pp. 6-18. Available at: https://core.ac.uk/download/pdf/229011752.pdf (accessed 04.03.21).

The Chain: COVID-19 AcceleratesDisruptive Business Models, Adoption of Innovative Solutions (2020). Available at: https://chainreactionresearch.com /the-chain-covid-19-accelerates-disruptive-business-models-adoption-of-innovative-solutions/ (accessed 04.03.21).

Wagner M. (2020). The post-COVID-19 business model requires proactive planning. Available at: https://www.accountingtoday.com/opinion/the-post-covid-19-business-model-requires-proactive-planning (accessed 04.03.21).

Ianora A., Thiele S., C.SingletonSlade, and Payne A. (2020). COVID-19 Accelerates New Business Models. Available at: https://www.egonzehnder.com/industries/indus

trial/insights/covid-19-accelerates-new-business-models (accessed 04.03.21).

Campbell H. (2016). Dr. Russell Ackoff, Design is the answer. Available at:

http://www.human-current.com /blog/2016/1/22/dr-russell-ackoff-design-is-the-answer

(accessed 02.03.21).

Ackoff R. (1978). The art of problem solving (accompanied by Ackoff‘s fables). John Wiley & Sons, Inc. New York-Chichester-Brisbane-Toronto-Singapore. 233 p.

Tarasenko F. P. (2021). Applied Systems Analysis: Science and Art of Solving Real-Life Problems. Boca Raton, CRC Press. 243 p.

##submission.downloads##

Опубліковано

2021-03-30

Номер

Розділ

Економіка та управління національним господарством