Surviving the Storm: The Vital Role of Entrepreneurs’ Network Ties and Recovering Capabilities in Supporting the Intention to Sustain Micro and Small Enterprises

Micro and small enterprises (MSMEs) play a positive and significant role in developing economies by creating job opportunities and mitigating poverty; this necessitates their attention and focus, mainly during challenging times. Accordingly, this study explored the key factors contributing to enhancing entrepreneurial competency (EC) and the intention to maintain business continuity among MSMEs in Yemen during adverse times. A sample of 280 responses was collected from MSMEs operating diverse types of businesses in the capital of Yemen, Sanaa. The collected data were analysed using partial least squares–structural equation modelling (PLS-SEM), which is considered suitable for this purpose. The data collection process included an online questionnaire and a physical visit to the business locations of the business owners. The findings of the study reported that entrepreneurs’ network ties (ENT), as well as recovering capability (RC), positively and significantly influence the EC of MSMEs in the context of the study. Additionally, EC positively and significantly influences business continuity intention (BCI). Finally, EC partially mediates the relationship between ENT, RC, and BCI. The study concludes by providing recommendations and implications for policymakers.