Survival analysis of Thai micro and small enterprises during the COVID-19 pandemic
Micro and small enterprises (MSEs) are important to the local economy and are the most crucial source of employment in Thailand. Using the three-round survey data, we assess the impact of COVID-19 on the survival probability of MSEs in the tourism and manufacturing sectors. Enterprise characteristi...
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| Format: | Article |
| Language: | English |
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Vilnius Gediminas Technical University
2022-11-01
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| Series: | Journal of Business Economics and Management |
| Subjects: | |
| Online Access: | https://journals.vilniustech.lt/index.php/JBEM/article/view/17875 |
| _version_ | 1811225855698927616 |
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| author | Supanika Leurcharusmee Paravee Maneejuk Woraphon Yamaka Nalitra Thaiprasert Nathapong Tuntichiranon |
| author_facet | Supanika Leurcharusmee Paravee Maneejuk Woraphon Yamaka Nalitra Thaiprasert Nathapong Tuntichiranon |
| author_sort | Supanika Leurcharusmee |
| collection | DOAJ |
| description |
Micro and small enterprises (MSEs) are important to the local economy and are the most crucial source of employment in Thailand. Using the three-round survey data, we assess the impact of COVID-19 on the survival probability of MSEs in the tourism and manufacturing sectors. Enterprise characteristics such as owner characteristics, employment and business strategies are examined as potential factors to mitigate or stimulate business failures. The Cox proportional hazards model and Kaplan–Meier estimator are employed. Our findings reveal that the survival probability paths from the three rounds of survey show a gradual decrease of survival probability from the first week of interview and approximately 50% of MSEs could not survive longer than 52 weeks during the COVID-19 pandemic. We also find that the survival of MSEs mainly depends on location, number of employees, and business model adjustment, namely operation with social distancing and online marketing. Particularly, retaining employees and not reducing the working hours are one of the key factors increasing the survivability of MSEs. However, the longer length of the crisis reduces the contribution of these key factors. The longer the period of the COVID-19 pandemic, the lower the chance of MSEs survivability.
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| first_indexed | 2024-04-12T09:14:14Z |
| format | Article |
| id | doaj.art-c9d66b7a9498494f891c44f9cafb7b23 |
| institution | Directory Open Access Journal |
| issn | 1611-1699 2029-4433 |
| language | English |
| last_indexed | 2024-04-12T09:14:14Z |
| publishDate | 2022-11-01 |
| publisher | Vilnius Gediminas Technical University |
| record_format | Article |
| series | Journal of Business Economics and Management |
| spelling | doaj.art-c9d66b7a9498494f891c44f9cafb7b232022-12-22T03:38:54ZengVilnius Gediminas Technical UniversityJournal of Business Economics and Management1611-16992029-44332022-11-0123510.3846/jbem.2022.17875Survival analysis of Thai micro and small enterprises during the COVID-19 pandemicSupanika Leurcharusmee0Paravee Maneejuk1Woraphon Yamaka2Nalitra Thaiprasert3Nathapong Tuntichiranon4Center of Human Resource and Public Health Economics, Faculty of Economics, Chiang Mai University, Chiang Mai, ThailandCenter of Excellence in Econometrics, Chiang Mai University, Chiang Mai, Thailand; Faculty of Economics, Chiang Mai University, Chiang Mai, ThailandCenter of Excellence in Econometrics, Chiang Mai University, Chiang Mai, Thailand; Faculty of Economics, Chiang Mai University, Chiang Mai, ThailandThe Asia Foundation, Bangkok, ThailandFaculty of Economics, Chiang Mai University, Chiang Mai, Thailand Micro and small enterprises (MSEs) are important to the local economy and are the most crucial source of employment in Thailand. Using the three-round survey data, we assess the impact of COVID-19 on the survival probability of MSEs in the tourism and manufacturing sectors. Enterprise characteristics such as owner characteristics, employment and business strategies are examined as potential factors to mitigate or stimulate business failures. The Cox proportional hazards model and Kaplan–Meier estimator are employed. Our findings reveal that the survival probability paths from the three rounds of survey show a gradual decrease of survival probability from the first week of interview and approximately 50% of MSEs could not survive longer than 52 weeks during the COVID-19 pandemic. We also find that the survival of MSEs mainly depends on location, number of employees, and business model adjustment, namely operation with social distancing and online marketing. Particularly, retaining employees and not reducing the working hours are one of the key factors increasing the survivability of MSEs. However, the longer length of the crisis reduces the contribution of these key factors. The longer the period of the COVID-19 pandemic, the lower the chance of MSEs survivability. https://journals.vilniustech.lt/index.php/JBEM/article/view/17875business survivalCOVID-19Cox proportional hazards modelKaplan–Meier estimatorsurvey dataThailand |
| spellingShingle | Supanika Leurcharusmee Paravee Maneejuk Woraphon Yamaka Nalitra Thaiprasert Nathapong Tuntichiranon Survival analysis of Thai micro and small enterprises during the COVID-19 pandemic Journal of Business Economics and Management business survival COVID-19 Cox proportional hazards model Kaplan–Meier estimator survey data Thailand |
| title | Survival analysis of Thai micro and small enterprises during the COVID-19 pandemic |
| title_full | Survival analysis of Thai micro and small enterprises during the COVID-19 pandemic |
| title_fullStr | Survival analysis of Thai micro and small enterprises during the COVID-19 pandemic |
| title_full_unstemmed | Survival analysis of Thai micro and small enterprises during the COVID-19 pandemic |
| title_short | Survival analysis of Thai micro and small enterprises during the COVID-19 pandemic |
| title_sort | survival analysis of thai micro and small enterprises during the covid 19 pandemic |
| topic | business survival COVID-19 Cox proportional hazards model Kaplan–Meier estimator survey data Thailand |
| url | https://journals.vilniustech.lt/index.php/JBEM/article/view/17875 |
| work_keys_str_mv | AT supanikaleurcharusmee survivalanalysisofthaimicroandsmallenterprisesduringthecovid19pandemic AT paraveemaneejuk survivalanalysisofthaimicroandsmallenterprisesduringthecovid19pandemic AT woraphonyamaka survivalanalysisofthaimicroandsmallenterprisesduringthecovid19pandemic AT nalitrathaiprasert survivalanalysisofthaimicroandsmallenterprisesduringthecovid19pandemic AT nathapongtuntichiranon survivalanalysisofthaimicroandsmallenterprisesduringthecovid19pandemic |