Entrepreneurial Ecosystem and Tourism Firms' Survival in the COVID-19 Pandemic Crisis: A Case Study of Daklak Province, Vietnam
DOI:
https://doi.org/10.26668/businessreview/2023.v8i11.3134Keywords:
Entrepreneurial Ecosystems, COVID-19, SurvivalsAbstract
Purpose: This paper aims to analyze the entrepreneurial situation during the COVID-19 pandemic, focusing on firms in the tourism sector. Specifically, we seek to identify factors that belong to the Entrepreneurial Ecosystem (EE) of Dak Lak province, supporting entrepreneurial firms' survival during the COVID-19 pandemic.
Theoretical framework: We applied the EE model developed by Isenberg (2011) to the province of Dak Lak, where we analyzed the effects of EE on the ability of new businesses in the community-based tourism sector to withstand the impact of the COVID-19 pandemic.
Design/methodology/approach: We conducted a survey of 206 entrepreneurs, of whom 108 are entrepreneurs in the tourism sector or communities-based tourist destinations. These surveyed entrepreneurs participated in two startup contests the Dak Lak Province organized in 2018 and 2020.
Findings: It was found that the COVID-19 pandemic particularly devastated small businesses in the travel and tourism sector. In addition, only two components of EE provide relief to these companies: FINANCE and CULTURE. Without a doubt, microcredit, loans, and debt refinancing funds, as well as the general liquidity of the financial market, help young businesses stay afloat. Additionally, the community's culture of risk-taking, failure acceptance, success-seeking, and lofty aspirations underpins their attempt to keep the business afloat during difficult times.
Research, Practical & Social implications: We suggested that Dak Lak province develop its EE by upgrading its elements as soon as possible to cope with future crises.
Originality/value: This study gives a new direction on the specific approach to improve the EE of a province of Vietnam and shows ways for better performance of the EE.
Conclusion: We found that FINANCE and CULTURE components play a positive role in assisting early-stage tourism firms. Specifically, the availability and accessibility of the financial market, including micro-credit, support entrepreneurial firms in maintaining their operation. In addition, the culture of tolerance of risks and failure, efforts for success, and high ambition is the basis for the action of entrepreneurs to continue their businesses.
Downloads
References
Aldrich, H. E. (1990). Using an Ecological Perspective to Study Organizational Founding Rates. Entrepreneurship Theory and Practice, 14 (3), 7–24. doi:10.1177/104225879001400303
Althuwayb, S. M., & Badawi, N. S. (2023). Entrepreneurial Intention of Saudi Women in the Covid-19 Pandemic Era: The Role of Personality Traits. International Journal of Professional Business Review, 8(6), e02211. doi:10.26668/businessreview/2023.v8i6.2211
Arribas, I., & Vila, J.E (2007). Human capital determinants of the survival of entrepreneurial service firms in Spain. International Entrepreneurship and Management Journal 3, 309–322. doi:10.1007/s11365-007-0038-z
Bruderl, J., Preisendorfer, P., & Ziegler, R. (1992). Survival Chances of Newly Founded. Business Organizations. American Sociological Review, 57(2), 227-242. doi:10.2307/2096207
Belda, P. R., & Cabrer-Borrás, B. (2018). Necessity and opportunity entrepreneurs: survival factors. International Entrepreneurship and Management Journal, 14(2), 249-264. doi:10.1007/s11365-018- 0504-9
Boyer, T., & Blazy, R. (2014). Born to be alive? The survival of innovative and noninnovative French micro-start-ups. Small Business Economics, 42(4), 669-683. doi:10.1007/s11187-013-9522-8
Budhwar, P., & Cumming, D. (2020). New directions in management research and communication: lessons from the COVID-19 pandemic. British Journal of Management, 31(3), 441-443. doi:10.1111/1467-8551.12426
Cefis, E., & Marsili, O. (2006). Survivor: The role of innovation in firms' survival. Research Policy, 35(5), 626-641. doi:10.1016/j.respol.2006.02.006
Cefis, E., & Marsili, O. (2012). Going, going, gone. Exit forms and the innovative capabilities of firms. Research Policy, 41(5), 795-807. doi:10.1016/j.respol.2012.01.006
Communist Party of Vietnam (2016). Political Report of the XI Party Central Committee at the XIIth National Congress.
Communist Party of Vietnam (2021). Political Report of the XII Central Committee at the XIII National Congress.
Ejermo, O., & Xiao, J. (2014). Entrepreneurship and survival over the business cycle: how do new technology-based firms differ?. Small Business Economics, 43, 411–426. doi:10.1007/s11187-014-9543-y
Hair, J., Black, W., Babin, B., & Anderson, R. (2009). Multivariate Data Analysis (7th Edition ed.): Pearson Prentice Hall.
Isenberg, D. J. (2011). The entrepreneurship ecosystem strategy as a new paradigm for economy policy: principles for cultivating entrepreneurship. Babson Entrepreneurship Ecosystem Project, Babson College, Babson Park: MA.
Irastorza, N. (2006). The liability of foreignness: Survival differences between foreign-and native-owned firms in the Basque Country. Vancouver Centre of Excellence working paper series #06-18.
Kato, M., & Honjo, Y. (2015). Entrepreneurial human capital and the survival of new firms in high-and low-tech sectors. Journal of Evolutionary Economics, 25(5), 925-957. doi:10.1007/s00191-015-0427-3
Moore, J. (1993). Predators and Prey: A New Ecology of Competition. Harvard Business Review.
Muldoon, J., Bauman, A., & Lucy, C. (2018). Entrepreneurial Ecosystem: do you trust or distrust?. Journal of Enterprising Communities: People and Places in the Global Economy, 12 (2), 158-177. doi.org/10.1108/JEC-07-2017-0050
Nunnally, J.C., & Bernstein, I.R. (1994). Psychometric theory (3rd ed.). New York: McGraw-Hill
Nguyen Thi Thao (2020). Situation and needs of entrepreneurial enterprises, solutions and policies to promote entrepreneurship in Dak Lak Province. Service of Science and Technology of Dak Lak province.
OECD (2021). COVID-19 Government Financing Support Programmes for Businesses: 2021 Update.
OECD (2021). COVID-19 Government Financing Support Programmes for Businesses: 2021 Update. OECD Paris Retrieved from 'https://www.oecd.org/finance/COVID-19-Government-FinancingSupport-Programmes-for-Businesses-2021-Update.pdf'
OWID (2022). Coronavirus Pandemic (COVID-19). Retrieved from: 'https://ourworldindata.org/coronavirus'
Pallant, J. (2001). SPSS survival manual - a step-by-step guide to data analysis using SPSS for Windows (version 10). Buckingham: Buckingham Open University Press.
People's Committee of Dak Lak (2018). The Plan 2722/KH-UBND supports innovative entrepreneurial businesses in Dak Lak province until 2020, oriented to 2025. Dak Lak, Viet Nam
Porter, M. E. (1990). The competitive advantage of nations: with a new introduction. New York: The Free Press.
Rukumnuaykit, P., Pholphirul, P., & Kwanyou, A. (2022). Business Survival in Times of COVID-19: Empirical Evidence from Tourism Enterprises in Thailand. Global Business Review. doi:10.1177/09721509221116002
Shankar, K. (2020). The impact of COVID-19 on IT services industry - expected transformations. British Journal of Management, 31(3), 450-452. doi:10.1111/1467-8551.12423
Shiferaw, A. (2009). Survival of Private Sector Manufacturing Establishments in Africa: The Role of Productivity and Ownership. In World Development, 37(3), 572-584. doi:10.1016/j.worlddev.2008.08.004
Stam, F. C. & Spigel, B. (2016). Entrepreneurial ecosystems. USE Discussion paper series, 16, 1-18
Subashini, G., Sofia, R., Gade, S., Sadhwani, R., & Bansal, R. (2023). A Study on the Association of Entrepreneurship Ecosystem with Financial Inclusion. International Journal of Professional Business Review, 8(4), e01241. doi:10.26668/businessreview/2023.v8i4.1241
VTC Now (2021). Broadcasting Program on August 13, 2021: Retrieved from 'https://www.youtube.com/watch?v=LtejIGFWUqo'
Zhao, C., & Burt, R. S. (2018). A note on business survival and social network. Management and Organization Review, 14(2), 377-394. doi:10.1017/mor.2018.12
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Bui Ngoc Tan, Le Duc Niem
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Authors who publish in this journal agree to the following terms: the author(s) authorize(s) the publication of the text in the journal;
The author(s) ensure(s) that the contribution is original and unpublished and that it is not in the process of evaluation by another journal;
The journal is not responsible for the views, ideas and concepts presented in articles, and these are the sole responsibility of the author(s);
The publishers reserve the right to make textual adjustments and adapt texts to meet with publication standards.
Authors retain copyright and grant the journal the right to first publication, with the work simultaneously licensed under the Creative Commons Atribuição NãoComercial 4.0 (http://creativecommons.org/licenses/by-nc/4.0/), which allows the work to be shared with recognized authorship and initial publication in this journal.
Authors are allowed to assume additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (e.g. publish in institutional repository or as a book chapter), with recognition of authorship and initial publication in this journal.
Authors are allowed and are encouraged to publish and distribute their work online (e.g. in institutional repositories or on a personal web page) at any point before or during the editorial process, as this can generate positive effects, as well as increase the impact and citations of the published work (see the effect of Free Access) at http://opcit.eprints.org/oacitation-biblio.html
