Startups and Crisis Management

Drawing on a mixture of theory, cases, and interviews, Startups and Crisis Management provides a valuable overview of how new ventures fared in the wake of the COVID-19 pandemic. It then considers the wider lessons for startups operating in times of crisis and adjusting to the ‘new normal’. The macroeconomic shocks of rising unemployment, lockdowns, and remote working have impacted the entrepreneurial ecosystem and raised questions about how startups can survive, adjust, and thrive once more. This book analyses the reciprocal relationship between startups and their ecosystems, using theoretical lenses such as push and pull factors, necessity entrepreneurship, networking, and embeddedness. Each chapter contains case studies based on interviews with individuals from startups around the world, exploring how real-life firms reacted to the coronavirus crisis. This illuminating text will be a useful resource for modules exploring startups during times of crisis, and courses on entrepreneurship and crisis management more broadly.

Contents Paving the way for the ‘new normal’: an introduction to the field Takeaways Overview Reciprocal relationships Theoretical glimpse Looking at the emerging ‘new normal’ What does the ‘new normal’ entail? The impetus – COVID-19: an unexpected ‘occurrence’ in a highly technological era The methodology Summary Reflective questions for class Start-up dynamics Takeaways Startup dynamics Demarcation of a startup Startup distinctiveness The external perspective Startups and the context Context and crises Ecosystems Ecosystems and crises The internal perspective Organizational view Management aspects A process view – opportunities and inhibitors Portrayal of startups Inherent disruptors Summary Reflective questions for class References Types of Crises Takeaways Introduction Crisis portfolio Demarcating crises Indicators of disruptive events Crisis dimensions Crisis core topic How does the event topic affect the startup? Sequential crisis events Generation of ‘other indicators’ COVID-19 and the new wave of crises Summary Reflective questions for class Born into Crises Takeaways Born into crises Conceptual models of startups under crises The role of perception Startups’ views of crises Chronicle of a crisis foretold A closer look at crises: the when, why and what Crisis life cycles and characteristics The distinctiveness of the COVID-19 pandemic crisis Startups create crises Abilities and skills – enablers or inhibitors to decipher crises? Leadership styles in depicting crises External effects of crises Takeaways Introduction The outward impact of crises Main external concerns Effects across sectors A glimpse into COVID-19 Tourism – a unique case External systems affect ecosystems Stakeholders' feedback – a fertile ground for crisis management A chaos perspective Summary Reflective questions for class Effects of crises on start-ups – a micro-perspective Takeaways Micro-perspective – an inward look Process/business innovation The ‘new normal’ in the business Being prepared for the ‘new normal’ Making the exception routine The digitalized entrepreneur Summary Reflective questions for class Strategy, preparation, and design Takeaways Introduction Startups design the action in the face of crises Startup management’s assessment of the situation Cognitive heuristics Heuristics and biases Designing the strategy The focus of preparation Decision-making in times of crisis Crisis preparedness Designing the required capabilities Summary Reflective questions for class Managing crises Takeaways Introduction Fight or flight? The effective crisis-management plan The concept of change Reframing the concept of acute Implementing the crisis-management protocol Shared coping action Response strategies The entrepreneur’s dilemma Coping with crises using innovative strategies Reviewing business models Delving into the pillars of business models Summary Reflective questions for class References Entrepreneurial psychological capital Takeaways Psychological distress in times of crises Effects of the COVID-19 pandemic on emotional stress Stressors Emotional representations Assessment of stressful events Entrepreneurial psychological capital Summary Reflective questions for class Female entrepreneurship in crises Takeaways Female entrepreneurship: a general overview of its uniqueness and challenges What makes female entrepreneurship an exclusive aspect of entrepreneurship? Business interpretations and perceptions Female entrepreneurship and crises: identification and exploitation Entrepreneurial emotions – a gendered look The dark side of the startup – disruptors Emotional intelligence Strategic orientation from a female entrepreneurship point of view Women’s psychological capital Summary Reflective questions for class Beyond the pandemic: The path to the new normal through case studies Introduction Case 1: The pandemic’s role in stimulating start-up creation Case 2: A start-up that failed due to the crisis Case 3: ‘Put a ding in the universe’ Steve Jobs – Papaya Global Case 4: ‘Against all odds’ – A story of resilience, trust and sustainability: Guesty Case 5: "A pivot is a change in strategy without a change in vision" (Eric Ries) – Bizzabo Case 6: Ecosystem stakeholders embrace startups: Startup México and Dux Capital Case 7: Reciprocity is the name of the game: JetztInvest (JI) – the open innovation platform Case 8: Forging the future: Co-Creation Network Universities (CCNU) References Index

Dafna Kariv is full-time faculty member at the Adelson School of Entrepreneurship, Reichman University, Herzliya, the Head of the Dual Degree Entrepreneurship-Business Administration, and the Chair of the School’s research Committee. Professor Kariv is also an Affiliate Professor at HEC, Montreal, Canada. Kariv is the author of seven academic books, and numerous published papers focusing on international entrepreneurship, entrepreneurial performance, female entrepreneurship and psychological aspects of entrepreneurs. She is a recipient of several prized funds, the Ambassador at GINSUM (German Israeli Network of Startups & Mittelstand) and involved in various academic boards.