Small and medium enterprises amidst the pandemic and reopening: Digital edge and transformation

Using administrative universal firm registration data as well as primary offline and online surveys of small business owners in China, we examine (i) whether the digitization of business operations helps small and medium enterprises (SMEs) better cope with the pandemic shock, and (ii) if the pandemi...

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Autores principales: Cong, Lin William, Yang, Xiaohan, Zhang, Xiaobo
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: Center for Global Development 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/143117
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author Cong, Lin William
Yang, Xiaohan
Zhang, Xiaobo
author_browse Cong, Lin William
Yang, Xiaohan
Zhang, Xiaobo
author_facet Cong, Lin William
Yang, Xiaohan
Zhang, Xiaobo
author_sort Cong, Lin William
collection Repository of Agricultural Research Outputs (CGSpace)
description Using administrative universal firm registration data as well as primary offline and online surveys of small business owners in China, we examine (i) whether the digitization of business operations helps small and medium enterprises (SMEs) better cope with the pandemic shock, and (ii) if the pandemic has induced digital technology adoption. We identify significant economic benefits of digitization in increasing SMEs’ resilience against such a large shock, as seen through mitigated demand decline, sustainable cash flow, ability to quickly reopen, and positive outlook for growth. After the lockdown in January 2020, firm entries have exhibited a V-shaped pattern, with entries of e-commerce firms experiencing a less pronounced initial drop and a quicker rebound. The COVID-19 pandemic has also accelerated digital technology adoption of existing firms in various dimensions (captured by, e.g., the alteration of operation scope to include e-commerce activities, allowing remote work, and adoption of electronic information system), and the effect persists after one year of full reopening.
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spelling CGSpace1431172025-12-08T10:06:44Z Small and medium enterprises amidst the pandemic and reopening: Digital edge and transformation Cong, Lin William Yang, Xiaohan Zhang, Xiaobo covid-19 small and medium enterprises pandemics electronic commerce digital technology Using administrative universal firm registration data as well as primary offline and online surveys of small business owners in China, we examine (i) whether the digitization of business operations helps small and medium enterprises (SMEs) better cope with the pandemic shock, and (ii) if the pandemic has induced digital technology adoption. We identify significant economic benefits of digitization in increasing SMEs’ resilience against such a large shock, as seen through mitigated demand decline, sustainable cash flow, ability to quickly reopen, and positive outlook for growth. After the lockdown in January 2020, firm entries have exhibited a V-shaped pattern, with entries of e-commerce firms experiencing a less pronounced initial drop and a quicker rebound. The COVID-19 pandemic has also accelerated digital technology adoption of existing firms in various dimensions (captured by, e.g., the alteration of operation scope to include e-commerce activities, allowing remote work, and adoption of electronic information system), and the effect persists after one year of full reopening. 2021-12-23 2024-05-22T12:12:04Z 2024-05-22T12:12:04Z Working Paper https://hdl.handle.net/10568/143117 en https://doi.org/10.1080/17538963.2021.1995246 https://doi.org/10.1016/j.jebo.2021.01.017 https://doi.org/10.1016/j.chieco.2021.101607 Open Access Center for Global Development Cong, Lin William; Yang, Xiaohan; and Zhang, Xiaobo. 2021. Small and medium enterprises amidst the pandemic and reopening: Digital edge and transformation. CGD Working Paper 599. Washington, DC: Center for Global Development. https://www.cgdev.org/publication/small-and-medium-enterprises-amidst-pandemic-and-reopening-digital-edge-and
spellingShingle covid-19
small and medium enterprises
pandemics
electronic commerce
digital technology
Cong, Lin William
Yang, Xiaohan
Zhang, Xiaobo
Small and medium enterprises amidst the pandemic and reopening: Digital edge and transformation
title Small and medium enterprises amidst the pandemic and reopening: Digital edge and transformation
title_full Small and medium enterprises amidst the pandemic and reopening: Digital edge and transformation
title_fullStr Small and medium enterprises amidst the pandemic and reopening: Digital edge and transformation
title_full_unstemmed Small and medium enterprises amidst the pandemic and reopening: Digital edge and transformation
title_short Small and medium enterprises amidst the pandemic and reopening: Digital edge and transformation
title_sort small and medium enterprises amidst the pandemic and reopening digital edge and transformation
topic covid-19
small and medium enterprises
pandemics
electronic commerce
digital technology
url https://hdl.handle.net/10568/143117
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AT zhangxiaobo smallandmediumenterprisesamidstthepandemicandreopeningdigitaledgeandtransformation