Reactions of Family Businesses to the Initial Effects of Pandemic Shock

Theoretical background: A pandemic shock caused by the COVID-19 virus spread around world, negatively affecting social and economic life in short term. Lockdowns, shutdowns restrictions hit business performance extremely hard. Family businesses, a significant part of sector, are entities focusing generally on continuity, futurity perseverance. Due to their multi-generational perspective, these firms forced react term deter negative impacts pandemic, including drop revenue employment alongside doubtful prospects survival. As an anti-crisis remedy, family businesses have drawn from specificity implement several intrinsic solutions aimed at mitigating downturn. Purpose article: The purpose paper is isolate determine which retrenchment, persevering innovating responses crisis were undertaken as remedy for consequences shock. Research methods: data collection was conducted April early May 2020. final sample totalled 202 Poland, research questions investigated employing logit regression models. dependent variables various actions firm due independent impact self-estimated probability Main findings: facing decided switch employees non-paid holidays, reduce wages, remote work further tap liquid finance reserves. In addition, they started liquidate less profitable areas if expected drop. case decrease, also reduced suspended repayment loans leasing handling extended payment terms liabilities. this study that estimated lower level capital survivability activity, sell important production assets, suspend handling, extend liabilities investment processes.