"Characterization of small family business in Chile and survival during COVID-19”

Abstract

This study contributes to the recent research on the effects of the COVID-19 pandemic on SMEs of a developing economy like Chile’s. The purpose of this study is to examine the im- pact of financial literacy, business practices, and metal health on survival differences between family and non-family business during the first year of the novel Covid-19. Given the economic importance of family SMEs and the struggle to keep the business running despite the confinement regulations, the research focuses on finding significant differences between these types of organizations, and investigating how these differences correlate to firm performance (survival) within a context of high economic uncertainty. Using the novel study “Impact of the COVID-19 pandemic on small businesses, Chile 2021”, the results suggest that family SMEs have lower levels of financial literacy and business practices than non-family SMEs. Nonetheless, family firms do not seem to be more vulnerable and prone to closure in times of crisis.