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Micro, Small & Medium Enterprises’ need for digitization to counteract COVID-19: From “nice-to-have” to “must-have”?

Author

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  • Francisco Bastida
  • Mohammad Nurunnabi
  • Vaughan Scott

Abstract

The impact of COVID-19 on Micro, Small & Medium Enterprises (MSMEs) has been devastating. Digitization has been one of the core strategies to cushion the impact of the pandemic. Based upon a questionnaire distributed in October 2020 to a sample of 345 US, 100 UK and 100 Indian MSMEs, we empirically investigate the determinants of MSMEs’ digitization as a strategy to confront the pandemic. Prior digital experience and company size seem to be predictive of the ability to implement new digital strategies during the pandemic. Our data also show that digital MSMEs expected lower sales drop caused by COVID-19. As policy implications, governments should target non-digital, smaller MSMEs to help them engage in digital transformation.

Suggested Citation

  • Francisco Bastida & Mohammad Nurunnabi & Vaughan Scott, 2025. "Micro, Small & Medium Enterprises’ need for digitization to counteract COVID-19: From “nice-to-have” to “must-have”?," Venture Capital, Taylor & Francis Journals, vol. 27(2), pages 249-269, April.
    • Handle: RePEc:taf:veecee:v:27:y:2025:i:2:p:249-269
    DOI: 10.1080/13691066.2023.2285998
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