The impact of government financial aid and digital tools on firm survival during the COVID-19 pandemic

Audretsch, D. B., Aronica, M., Belitski, M., Caddemi, D. and Piacentino, D. (2025) The impact of government financial aid and digital tools on firm survival during the COVID-19 pandemic. Small Business Economics, 65. pp. 813-836. ISSN 0921-898X doi: 10.1007/s11187-025-01014-5

Abstract/Summary

This study explores the effect of bailout capital and digital diversification by small- and medium-sized enterprises (SMEs) on their propensity to survive during and after the COVID-19 pandemic. Using a random sampling of 5469 SMEs from 16 European countries, collected by the World Bank Enterprise Survey in May 2020, January 2021, and May 2021, we conduct a two-stage estimation to examine factors that first affected the propensity of SMEs to access bailout capital, and second, factors that increased the propensity of SMEs to survive longer during and after crises. Two key findings emerge. Diversification of government financial aid and the adoption of various digital tools to leverage the effect of shock by SMEs increase their propensity to survive by sized firms. Moreover, government financial aid does not moderate the effect of digital tool adoption on the propensity to survive. Policy insights and implications are also discussed.

Item Type	Article
URI	https://centaur.reading.ac.uk/id/eprint/123362
Identification Number/DOI	10.1007/s11187-025-01014-5
Refereed	Yes
Divisions	Henley Business School > Digitalisation, Marketing and Entrepreneurship
Publisher	Springer
Download/View statistics	View download statistics for this item