Determinants of the Economic Vulnerability of Businesses to Pandemics and Similar Events

After providing a general overview of factors that make businesses economically vulnerable to pandemics (such as COVID-19), this article identifies specific elements that increase the vulnerability of businesses to pandemics. These specifics include the extent to which the demand for their productio...

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Autor principal:	Clement A. Tisdell
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	COVID-19 demand volatility epidemics inescapable costs insolvency labour problems Risk in industry. Risk management HD61 Finance HG1-9999
Acceso en línea:	https://doaj.org/article/6389faabb1704fa68de6a5b2e701549b
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spelling	oai:doaj.org-article:6389faabb1704fa68de6a5b2e701549b2021-11-25T18:08:36ZDeterminants of the Economic Vulnerability of Businesses to Pandemics and Similar Events10.3390/jrfm141105321911-80741911-8066https://doaj.org/article/6389faabb1704fa68de6a5b2e701549b2021-11-01T00:00:00Zhttps://www.mdpi.com/1911-8074/14/11/532https://doaj.org/toc/1911-8066https://doaj.org/toc/1911-8074After providing a general overview of factors that make businesses economically vulnerable to pandemics (such as COVID-19), this article identifies specific elements that increase the vulnerability of businesses to pandemics. These specifics include the extent to which the demand for their production declines, how easy it is for them to reduce the costs of their production (cost escapability), the importance of disruptions or breaks in the supply chains of inputs utilized by businesses, and their ability to sustain their liquidity. Businesses that rely on personal contacts for sales are especially threatened, for example, those in the hospitality and tourism sector. However, others are also vulnerable for the reasons given. Nevertheless, some businesses do gain as a result of pandemics and similar events. Their economic gain adds to GDP. However, it could be more appropriate to regard their gains as a part of the cost of a pandemic rather than a benefit of it. The effect on the vulnerability of businesses if government policies designed to control pandemics is also considered. The main original contribution of this article is to show how the microeconomic theory of the firm can be adapted to conceptualize the vulnerability of individual businesses to pandemics, particularly COVID-19, while also noting the limitations of this approach.Clement A. TisdellMDPI AGarticleCOVID-19demand volatilityepidemicsinescapable costsinsolvencylabour problemsRisk in industry. Risk managementHD61FinanceHG1-9999ENJournal of Risk and Financial Management, Vol 14, Iss 532, p 532 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	COVID-19 demand volatility epidemics inescapable costs insolvency labour problems Risk in industry. Risk management HD61 Finance HG1-9999
spellingShingle	COVID-19 demand volatility epidemics inescapable costs insolvency labour problems Risk in industry. Risk management HD61 Finance HG1-9999 Clement A. Tisdell Determinants of the Economic Vulnerability of Businesses to Pandemics and Similar Events
description	After providing a general overview of factors that make businesses economically vulnerable to pandemics (such as COVID-19), this article identifies specific elements that increase the vulnerability of businesses to pandemics. These specifics include the extent to which the demand for their production declines, how easy it is for them to reduce the costs of their production (cost escapability), the importance of disruptions or breaks in the supply chains of inputs utilized by businesses, and their ability to sustain their liquidity. Businesses that rely on personal contacts for sales are especially threatened, for example, those in the hospitality and tourism sector. However, others are also vulnerable for the reasons given. Nevertheless, some businesses do gain as a result of pandemics and similar events. Their economic gain adds to GDP. However, it could be more appropriate to regard their gains as a part of the cost of a pandemic rather than a benefit of it. The effect on the vulnerability of businesses if government policies designed to control pandemics is also considered. The main original contribution of this article is to show how the microeconomic theory of the firm can be adapted to conceptualize the vulnerability of individual businesses to pandemics, particularly COVID-19, while also noting the limitations of this approach.
format	article
author	Clement A. Tisdell
author_facet	Clement A. Tisdell
author_sort	Clement A. Tisdell
title	Determinants of the Economic Vulnerability of Businesses to Pandemics and Similar Events
title_short	Determinants of the Economic Vulnerability of Businesses to Pandemics and Similar Events
title_full	Determinants of the Economic Vulnerability of Businesses to Pandemics and Similar Events
title_fullStr	Determinants of the Economic Vulnerability of Businesses to Pandemics and Similar Events
title_full_unstemmed	Determinants of the Economic Vulnerability of Businesses to Pandemics and Similar Events
title_sort	determinants of the economic vulnerability of businesses to pandemics and similar events
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/6389faabb1704fa68de6a5b2e701549b
work_keys_str_mv	AT clementatisdell determinantsoftheeconomicvulnerabilityofbusinessestopandemicsandsimilarevents
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Determinants of the Economic Vulnerability of Businesses to Pandemics and Similar Events

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