Disruptions, Operational Resilience and Performance: A Study of Micro-Entrepreneurs in Uganda

The lack of formal employment opportunities in poor economies lead to substantial early-stage entrepreneurial activity in these regions, generating income for the poor (Banerjee and Duflo 2007). These small businesses, however, tend to face frequent disruptions – including shocks that severely hinder business productivity, performance and survival. Indeed, many unpredictable events (such as sudden illness contracted by owner, accidental injury to an employee, unexpected fire or theft, abrupt supply or payment disruption) not only constrain business operations but also reinstate the cycle of poverty (Banerjee and Duflo 2007, Collins et al. 2009). This study aims to 1) identify and categorize different types of disruptions faced by micro-entrepreneurs in emerging markets, 2) estimate the effect of these disruptions on the survivability and growth of the firms, and 3) estimate the moderating effect of specific operational strategies that micro-entrepreneurs use to improve their resilience to disruptions. Through this research we aim to generate novel insights that can guide policies focused on helping micro-entrepreneurs strengthen operational resilience and overcome productivity shocks.