Emergency situations in SMEs: are entrepreneurs prepared?

Acute emergency situations in the personal life of the entrepreneurs in small and medium-sized enterprises (SMEs) can play an important role in the premature, involuntary cessation of businesses. In this paper, it is empirically investigated how entrepreneurs prepare for these emergency situations (disablement, death, prolonged illness, and divorce). Only a small minority of the entrepreneurs in our sample had prepared well for all four emergency situations. The age of the entrepreneur and firm size both influence this preparation. Furthermore, previous experience of a certain emergency situation leads to better preparation for such an emergency situation in the future.