Abstract
Small and Medium-Sized enterprises (SMEs) are critical to the economic development, employment generation, poverty alleviation, market creation, innovation, and entrepreneurship, especially in developing countries. Yet they remain highly vulnerable to environmental changes that threaten their growth and sustainability. Drawing on the contingency theory, this study argues that examines SME survival depends on alignment between internal capabilities and external environmental conditions. It examines SME resilience conceptualised as the capacity to anticipate, absorb, adapt, and leverage emerging opportunities, and its influence on business survival in Uganda. It further explores how access to finance, innovation and technology, leadership and management, and human capital management enhance or mediate this relationship.
The findings reveal that operational and strategic resilience are critical for SMEs to sustain performance, recover from setbacks and adapt to dynamic conditions. Consistent with contingency theory, the results suggest that SMEs achieve better survival outcomes when resilience capabilities are supported by contextually aligned financial, technological, managerial, and human resources practices. Mediating factors such as finance, technology adoption, leadership and management, and human resource practices strengthen the resilience-survival link, enabling SMEs to navigate crises while leveraging opportunities. However, an overemphasis on short term recovery may undermine long-term sustainability.
The study contributes theoretically by advancing understanding of how resilience operates within SMEs in developing countries, integrating contingency theory to explain how contextual fit shapes survival outcomes, and identifying key mediators and dimensions that shape survival outcomes. Practically, it provides actionable insights for SME owners, policy makers, financial institutions, and development partners to design resilience-enhancing strategies that integrate financial access, digital transformation, effective leadership, and human capital management. Strengthening SME resilience through these aligned pathways is essential for long-term competitiveness, growth, and sustainability in volatile operating environments, and offers a foundation for future research on SME survival and resilience.