The Influence of Pandemic Financial Relief on Organizational Development and Business Continuity

Abstract

This study examines the impact of financial assistance, specifically through the Paycheck Protection Program (PPP), on business organizational development and average business lifespan during the pandemic. The study employs an inductive thematic analysis approach to understand the influence of financial assistance on a business’s organizational development and continuity during and after the pandemic. The research provides a basic understanding of the factors influencing business failure under normal economic conditions and business cycles, and how the pandemic may have interrupted the normal life cycle. The research is based on the theoretical foundation of Lippitt and Schmidt’s organizational life cycle model. This model outlines three stages: birth, youth, and maturity. Semi-structured interviews were conducted with participants who received PPP funds. Thematic analysis was used to extract codes and themes from the interview transcripts. The data indicated that the provision of financial assistance contributed to the continued success of a business, thereby positively influencing business sustainability and organizational development. The research findings indicate that businesses that received assistance experienced positive impacts. Businesses in the birth and youth stage weathered cash flow challenges, while some businesses in the mature stage found the opportunity to expand. The implications of this study provide insight to businesses for preparing for financial challenges, how government-sponsored programs can be designed to benefit businesses in the most need, and overall programs to support business. Further research into the long-term effect on business sustainability resulting from pandemic financial assistance and including a larger geographic area of businesses is recommended.