Title: The dynamics of crisis in the entrepreneurial firm: an explanation using the Three-Domain Model

Authors: Gus M. Geursen

Addresses: Department of Accounting and Finance, Faculty of Business and Economics, Monash University, Melbourne, Australia

Abstract: The dynamics of crisis have not been well understood or explored in the different literatures affecting the firm. In this paper, a liquidity crisis or evidence that the firm has entered a sequence of events leading to such a situation is considered as indicating crisis. The paper uses case studies from small and entrepreneurial firms to explore the anatomy of crisis; it also demonstrates that the logic can be extended to large firms. Furthermore, the paper indicates how the focus of managers has a significant bearing on liquidity health, and that sustained resolution of a crisis can only be achieved by increasing a firm|s market relevance, which increases its cash flow from operations.

Keywords: entrepreneurial firm; dynamics of crisis; firm survival; Three-Domain Model; Australia, small firm survival.

DOI: 10.1504/IJEIM.2001.000465

International Journal of Entrepreneurship and Innovation Management, 2001 Vol.1 No.3/4, pp.414-424

Published online: 16 Jul 2003 *

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