Restarting MSMEs and start-ups post COVID-19: a grounded theory approach to identify success factors to tackle changed business landscape

Purpose Small businesses and start-ups have started to reopen post coronavirus disease 2019 (COVID-19) lockdowns but are facing numerous challenges mainly due to changed customer preferences and the need to fine-tune the business models. This research aims to identify the important aspects that start-ups need to focus on, as they weather the COVID-19 pandemic storm. Design/methodology/approach Research uses constructivist grounded theory methodology to analyse data collected through in-depth semi-structured interviews with entrepreneurs and senior employees at start-ups. A conceptual model based on nine categories impacting a start-up’s performance is investigated. Interview memos are thematically analysed to identify repeated ideas, concepts or elements that become apparent. Findings Study reveals that employees’ and customers’ safety, prudent cost management and online presence/doorstep services are key for start-ups to succeed today's changed business landscape due to COVID-19. Practical implications Findings act as a practical guide for start-ups in setting mechanisms, optimizing operations and fine-tuning strategy to address COVID-19 challenges. Start-ups are advised to evaluate the implications of the three findings on their respective businesses to successfully tackle the challenges posed by COVID-19. Originality/value This research, being cognizant of a start-up’s unique characteristics and nuances, takes a fresh approach to identify key aspects that start-ups need to focus on and fine-tune in the wake of COVID-19. The paper enriches scientific research of understanding impact of COVID-19 on organizations by specifically surfacing how start-ups can learn and adapt by knowing how other start-ups are surviving today.