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The COVID-19 pandemic has exposed new aspects of sustainable entrepreneurship and the resilience of SMEs in the conditions of individual countries. This empirical study contributes to entrepreneurship sustainability literature and business resilience literature by estimating the impact of various utilized internal crisis management tools and state compensation measures on retaining the pre-crisis levels of employment after two waves of the pandemic on the conditions of a V4 country. The study adopts an econometric approach towards assessing the influence of key factors of mitigating the problems caused by the pandemic, and the results suggest a crucial role of digitalization, internal policies optimizing variable costs, and utilization of direct governmental supportive measures to compensate for restrictions in force for employment retention in knowledge-intensive SMEs. According to the results, knowledge-intensive SMEs appears to have increased resilience towards economic shocks due to the capability to swiftly change the management of ventures to adapt to a crisis.

What Kept the Boat Afloat? Sustainability of Employment in Knowledge-Intensive Sectors Due to Government Measures during COVID-19 Pandemic