Surviving with Less: Navigating Entrepreneurial Decisions in Resource-Limited Contexts: Institute for Small Business and Entrepreneurship 2023 Conference

Small firms, especially family-owned enterprises, often face the challenge of making strategic decisions in resource-limited environments. We investigated in this study, the complex nature of entrepreneurial decision-making within such contexts, focusing on the meat processing industry in the UK. By adopting a multiple-case study approach, the study explored the various strategic entrepreneurial responses employed by the small firms when confronted with limited resources and rapidly changing business environments. We explored diverse theoretical frameworks, including effectuation, adaptation, dynamic capability, and others, to understand the decision-making processes of these businesses. Most studies on entrepreneurial decisions have generally been done at different contexts, however our present study focused on entrepreneurial decisions at a specific resource-limited context level. Findings from in-depth interviews, observations, and document analyses showed how small firms adopted different decision processes in the difficulties of resource constraints. The results revealed that these firms adopt different strategic approaches, including ?No Adaptation,? ?Reactive Response,? ?Strategic Decision,? and ?Survival Decision,? depending on their specific circumstances. The study challenges traditional theories that emphasise resource-driven competitive advantages, suggesting that small firms often prioritise immediate needs and goals over long-term competitiveness. The study further revealed that small firms relied on existing resources, networks, and relationships to survive and adapt to changing conditions. The study contributes empirical evidence to the entrepreneurial literature, demonstrating the significance of effectuation-based decision models for small firms in resource-limited contexts.