The effect of current global economic crisis on Danish companies and what we can learn from it.

The paper explores the effects of the current global economic crisis on small and medium enterprises (SMEs) and the responses these SMEs undertake to cope with these effects. In other words, how entrepreneurs respond to the decline in their firm’s performance that is the result of this global economic crisis. Two theoretical lenses are identified to guide the understanding of entrepreneurs’ behaviours under crisis decision-making settings: turnaround strategy, and escalating commitment. To explore entrepreneurs’ behaviours under crisis decision-making settings, entrepreneurs of SMEs were surveyed in Denmark.