Entrepreneurial resilience and firm performance during the COVID-19 crisis – Evidence from Hungary
Entrepreneurial resilience and firm performance during the COVID-19 crisis – Evidence from Hungary

Summary/Abstract: Purpose: Recognising the swift and negative impact of Covid-19 on innovation, entrepreneurial behaviour, and small and medium enterprises’ (SME) performance, we examine the situation and prospects of Hungarian companies. We evaluate entrepreneurial resilience and firm performance, with a specific focus on subsidised firms. Design/methodology/approach: We use data derived from two surveys. This is a combined dataset of the database of Hungarian companies required to use the double entry bookkeeping system, and the integrated monitoring database, established by the Ministry for Innovation and Technology to cover financial assistance from both the European Union and national budgets. Our analyses use the propensity score matching method. The ultimate goal of the study is to show the micro-level effects of the COVID-19 crisis on entrepreneurs, with special focus on previously received financial assistance by a firm, its geographical location (based on NUTS level 2 regions and urban development zones ), industry (level 2 NACE codes), and size. Findings: The result provides evidence that subsidies have a positive impact on SMEs’ resilience, employment, sales, and productivity. Originality/value: The originality of the research lies in its novel finding in that the assisted companies have proven to be more resilient and far more optimistic regarding their prospects than those enterprises that did not receive financial support.

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