Annotated Bibliography: Challenges faced by Start-ups due to COVID-19

Running head: CHALLENGES FACED BY START-UPS DUE TO COVID-19 1
Annotated Bibliography: Challenges faced by Start-ups due to COVID-19
Name
Institution

CHALLENGES FACED BY START-UPS DUE TO COVID-19 2
Research Question: What are the challenges faced by Start-ups due to COVID-19?
Álvarez, M. C. (2020). COVID-19 credit guarantees in the Eurozone.
Alvarez (2020) delves into discussing the implications of credit guarantees offered by
countries in the Eurozone due to the outbreak of the Corona Virus (COVID-19). The scholar
starts analysing the various policy measures that almost all countries in the Eurozone have
employed to contain and mitigate the risks associated with COVID-19. The paper is an
edition of the original version that specifically aimed at discussing the policy measures input
by the EU governments on April 10 to curb the Coronavirus epidemic. This paper would be
relevant to start-up managers that wish to be updated with new government policies in their
country or region. For instance, this paper is very helpful to entrepreneurs and managers in
the Eurozone region.
The scholar collected his data from the secondary reports and op-eds written by
financial newspapers such as the Financial Times. Moreover, the author relied on the frequent
government reports released by government agents as well as the Eurozone’s European
Central Bank. Statements and presentations made by paramount leaders in Eurozone such as
Mario Draghi have also been referred to. In his finding, the scholar asserts that banks,
financial institutions, and governments have outlaid credit guarantees that are aimed at
helping small and medium enterprises as well as start-ups to cushion themselves against the
adverse effects of the COVID-19 pandemic. Apart from credit measures, the scholar also
ascertains that governments in the EU should reduce taxes incurred by small and medium
enterprises and start-ups in the EU. This paper would be helpful to small and start-up
managers that have their enterprises in the EU because it informs them of policies and
measures that they can benefit from especially during this COVID-19 pandemic crisis.

CHALLENGES FACED BY START-UPS DUE TO COVID-19 3
Gonzalez-Uribe, J., & Wang, S. (2020). The Effect of Recessionary Fiscal Stimulus on Small
Firms: Evidence from Loan Guarantees in the UK1.
Gonzalez-Uribe and Wang (2020) combine their efforts to investigate the impact of
the recessionary fiscal policy measures employed in many countries that have been affected
by the COVID-19. Many governments have already ascertained that they would implement
fiscal policies to cushion their economies against the deteriorating effects of the COVID-19
outbreak. This paper is relevant because it poises the managers and start-up employees
towards tapping any benefits from the policy measures effected by governments. The paper
mainly uses the guarantees and promises of the UK in the historical Great Recession to
project the impact of such guarantees to businesses due to the COVID-19 outbreak. The
paper attempts to investigate how firms utilized and advantaged from the policies
implemented during the Great Depression in the 1930s.
In the paper, the scholars collected data from five types of firm outcomes using the
FAME data. The scholars use five capital sources namely: external debt, inside debt, trade
credit, lease, and issued equity. The scholars make of a sample of firms in the UK that ranged
had revenue ranging from 12 million to 38 million during the 2008 financial crisis. Using
Intention-to-Treat Estimators (ITT) and Treatment on the Treated Estimators (TOT), the
scholars successfully analyze the impacts of financial instruments and strategies used by
firms in the UK during global recessions. The scholars found out that managers and
entrepreneurs in the UK are aware of the measures put by the government to protect their
economy's advantage and are cushioned against drastic experiences during financial
recessions. This paper would be helpful to managers of start-ups to help to mitigate the
underlying risks during the COVID-19 outbreak. Such managers are likely to protect their
start-ups against major drawbacks in any industry.