From Disruption to Recovery: The Entrepreneurial Journey of SMEs in the Face of COVID-19

The COVID-19 pandemic posed severe disruptions to business operations globally, with small and medium enterprises (SMEs) being the most vulnerable due to limited resources and capacity. This study explores how entrepreneurial orientation (EO) influenced the development of resilience capabilities among SMEs in Gaya district, Bihar, during the pandemic. Using a qualitative research design based on semi-structured interviews, the study examines key challenges faced by SMEs, their strategic responses, and the nature of adaptive capabilities developed over time. Findings suggest that EO traits such as innovation, proactiveness, and risk-taking played a critical role in shaping SMEs’ ability to respond effectively. These traits contributed to the adoption of digital tools, diversification of products and services, and the use of informal networks for support. The research highlights that resilience was not uniform but evolved based on contextual factors, access to resources, and individual entrepreneurial behaviour. The study concludes with policy recommendations to strengthen entrepreneurial ecosystems and enhance crisis preparedness among SMEs in rural and semi-urban settings.