Family Business Resilience in the Time of COVID-19: Evidence from Malaysia

Abstract

The sudden outbreak of the 2019 coronavirus (COVID-19) has caused panic around the world. All businesses regardless of size have been affected; family businesses are no exception. Therefore, the study examines business family resilience during the time of COVID-19 on the east coast of Peninsular Malaysia. A face-to-face interview with six respondents was conducted in January 2022. The study found that, in general, all those businesses were affected by COVID-19. Their financial situation deteriorated when business operations could not be carried out as usual. Financial disruptions also resulted from rising raw material prices, production disruptions due to restrictions from the government, and interruption of the supply chain. However, they have an advantage over other businesses when family members are jointly responsible for the company’s finances and operations. Therefore, they have high economic resilience with the nature of tolerance and mutual understanding among family members.