Abstract
This study addresses a gap in crisis management theory by investigating the resilience of resource-constrained ethnic minority entrepreneurs in the UK during the prolonged COVID-19 crisis and examining how social capital influenced their coping strategies. It adopts a qualitative approach, comprising in-depth interviews with twenty Bangladeshi entrepreneurs operating small businesses in rural areas of the UK and an illustrative case study of a Bangladeshi entrepreneur in Greater London (Hassan), to explore how these business owners managed severe resource constraints and psychological stress amid fluctuating lockdown policies and financial instability. The findings reveal that relational social capital—manifested through supportive mentors and network ties—played a critical role in fostering positive thinking, mitigating psychological distress, and sustaining entrepreneurial persistence throughout the crisis. Notably, mentorship from Hassan’s social network helped him reframe his strategic outlook and avoid a contemplated business divestment, enabling the continuity of his enterprise despite intense adversity. The study makes three key theoretical contributions. First, it challenges the entrepreneurial bricolage perspective, which traditionally emphasizes financial resource improvisation, by demonstrating that leveraging social capital is equally, if not more, crucial for resilience in a crisis than access to financial capital. Second, it extends the concept of immigrant enclave entrepreneurship by showing that even entrepreneurs in remote, non-enclave areas can harness relational social capital beyond their immediate ethnic community boundaries to survive and adapt under prolonged crisis conditions. Third, it enriches assimilation theory by illustrating how social capital facilitates integration into local business communities, thereby enhancing crisis resilience. Overall, the research underscores the importance of social capital as a vital resource enabling ethnic minority-owned small firms to navigate prolonged crises and sustain their ventures. These insights have broader implications for policymakers and support organizations helping small and young firms develop network-based strategies to manage future crises and foster resilience in adverse business environments.