Abstract
What measures are SMEs most likely to take in order to make ends meet in the face of a “black swan” external shock? That is the question we explore in this study, drawing upon unique data from 456 SMEs in the midst of an unfolding crisis. Our findings demonstrate how SMEs acted immediately by deferring investments, reducing labor costs, reducing expenses, and negotiating contracts and terms. Moreover, the data highlight how SMEs in an unfolding crisis are reluctant to commit to any action that will increase their debt-to-equity ratio. The findings suggest new questions to be explored in relation to actions during an unfolding crisis, post-crisis businesses, entrepreneurial failure, and entrepreneur/entrepreneurial team characteristics. Implications for policy and practice are provided.