The effect of the coronavirus on the business strategy and the support conditions of Szabolcs-Szatmár-Bereg County businesses

Abstract

The pandemic of 2019 significantly changed the lives of not only individuals, but also businesses. Business conditions have changed significantly, borders closed, quarantine restrictions have been arisen, and air travel stopped. There were sectors that became unable to function, and some sectors began to develop rapidly due to the situation caused by the shock effect. In the service sector, many resorts, restaurants and cosmetics companies found themselves in a critical situation, but simultaneously the pharmaceutical industry began to develop rapidly. Overcoming the economic problems caused by the coronavirus and their solutions are currently the subject of many areas of scientific research. Therefore, this study presents scientifically based answers to the question regarding the impact of the pandemic on the business strategy of enterprises in the Sabolch-Satmar-Bereg district. An important aspect of research work is the study of the organizational behavior of companies, as well as strategies for survival, adaptation or protection from the negative impact of external factors. In order to deepen the research and establish our hypotheses, the scientific literature on strategic management was studied. In order to confirm the research questions on the selected issues, an initial study was conducted, in the framework of which a questionnaire survey was conducted among enterprises operating in the Sabolch-Satmar-Bereg district. The results of the study prove that new strategies were developed in a situation that suddenly changed, as everyone had to adapt to the new conditions. The survey respondents noted that the newest opportunities that appeared during the pandemic period received more attention in the directions of expanding the personal creative approach to solving problems, innovativeness, as well as the importance of family ties and belonging to various social communities. The state also tried to promote survival and provided various types of business subsidies. Among the main measures were the establishment of a moratorium on loans maturity, the introduction of the Development Lending Program, providing state support for payment of wages to enterprises, as well as the expansion of credit opportunities under the Secheny card. Since various shock situations are unpredictable, it becomes extremely important for businesses to define the strategies and tools they use to deal with the crisis. Business plans and business forecasts that were prepared before the emergence of the coronavirus are no longer relevant, as the new, multifactorial, unknown pandemic situation and other force majeure conditions have changed the basic approaches to planning.