Survival instincts of Chinese entrepreneurs in the UK: adaptation or hibernation

Surviving a crisis requires a unique set of responses from a firm. This paper examines migrant entrepreneurs and their responses to COVID-19 pandemic. These entrepreneurs are disadvantaged in their markets, typically due to cultural differences, but also other barriers that include outright discrimination by native populations. Consequently, global crisis has a more severe meaning to migrant entrepreneurs who struggle in the best of times. Empirically we focus on interviews with Chinese entrepreneurs in the UK, employing template analysis to disentangle the data. We find two key mechanisms these entrepreneurs employ to respond to crisis: adaptation and/or hibernation. Adaptation is about introducing changes in response to altering market conditions, it is a proactive response. Hibernation is a passive response characterised by deliberate shutdown and/or slow-down of operations, with business continuity funded from accumulated financial reserves. The paper concludes that policy should be more sensitive to enabling responses that ensure firm survival.