Emerging in late 2019, Coronavirus disease of 2019 (COVID-19) was classified as a pandemic in January 2020 and rapidly spread worldwide (Ozili & Arun, 2023). It shocked communities and economies and disrupted business operations (Hussain & Hussain, 2023), resulting in declines in business activity and sales (Kyung & Whitney 2020). Financial struggles and retrenchments ensued, with many companies forced to close (Aladejebi, 2020). A study by Kalogiannidis (2020) found that some Small and Medium Enterprises (SMEs) had sufficient funds to last them 2 weeks, while others had enough for about 2 months. Only 6% had sufficient cash reserves to survive for one full year (Assefa, 2023). Since small businesses are the cornerstone of any economy, they should be protected against the effects of COVID-19 (Engidaw, 2022). These impacts were also evident in South Africa, where Statistics South Africa (2020) conducted business impact research during the initial stages of the pandemic. The survey reveals that about 30.6% of businesses indicated they could last less than a month without income, whereas 54.0% could sustain operations for 1–3 months.

Despite the significant impact of COVID-19 on businesses globally and in South Africa, there is limited empirical research on how psychological practitioners’ private practices were specifically affected. While existing literature documents the pandemic’s impact on various industries (Dube et al., 2021; Jowitt, 2020; Moon, 2020; To & Lee, 2024; Verschuur et al., 2021), there remains a gap in understanding the unique challenges faced by psychological practitioners operating as SMEs in the South African context. This study addresses this gap by exploring the experiences of psychological practitioners’ private practices during the pandemic and understanding how these practitioners adapted to remain competitive. Therefore, it is crucial for SME owners to strengthen their resilience and embrace a mindset focused on identifying opportunities (Liguori & Pittz, 2020). Rudolph et al. (2021) emphasise the important role of industrial and organisational psychology researchers and practitioners in actively adapting their work to address the challenges and opportunities presented by COVID-19. This study sought to contribute to the ongoing efforts among Industrial and Organisational (IO) psychologists and other psychological practitioners to adapt and ensure their private practices’ competitiveness to effectively meet the evolving needs of clients and organisations in the wake of the pandemic.

The rapid spread of the virus led to a worldwide economic downturn (Joshi et al., 2020; Xiu, 2024). Many industries and sectors were affected; according to Chen et al. (2022), the pandemic negatively impacted many businesses in the service industry, such as tourism, entertainment (Moon, 2020), construction (Pamidimukkala & Kermanshachi, 2021), restaurants and hospitality (Dube et al., 2021), aviation (To & Lee, 2024) and mining (Jowitt, 2020). Verschuur et al. (2021) reported on its impact on the manufacturing sector, with losses of up to 11.8%.

In South Africa, the pandemic did not spare businesses. The South African government implemented a 6-week lockdown (Stiegler & Bouchard, 2020) to save lives (Rule et al., 2024), and many companies were not permitted to operate, with permission given only to essential businesses (Cele & Tshikovhi, 2023). While the lockdown had benefits, including reduced virus spread and fatalities, it also brought challenges, such as insufficient financial resources and job losses. The survey conducted across various business sectors revealed that 85.4% of companies experienced lower-than-normal turnover (Stats SA, 2020). Muthu and Wesson (2023) found that even Johannesburg Stock Exchange (JSE)-listed companies experienced a statistically significant decline in overall performance during the COVID-19 period. Moreover, SMEs experienced a decline in profitability, with many reporting declines exceeding 60% by 2020 (Maharaj & Msomi, 2024). A survey by the National Youth Development Agency (2020) reported that 43% of businesses had temporary closures attributed to the pandemic. The informal sector was also not spared (Khambule, 2020; Rogan & Skinner, 2020), particularly through distribution and marketing systems (Cele & Tshikovhi, 2023). Self-employed people were seen as especially vulnerable, with working hours dropping by about one-third, resulting in loss of earnings, and the reduction in work hours was even more catastrophic for women, whose typical income reduced by close to 70% (Rogan & Skinner, 2020).

Sarkar and Clegg (2021) concur that the arrival of COVID-19 had an abrupt and immediate effect on the functioning of organisations. In response to the pandemic, a drastic change in how people work emerged, with companies moving away from office-based work to remote work (Tagliaro & Migliore, 2022). Similarly, psychological practitioners’ private practices, which mostly operate as SMEs, confronted their share of challenges from the COVID-19 pandemic. Sánchez-Guarnido et al. (2021) noted a shift in psychological practitioners’ mode of consultations, transitioning from traditional face-to-face sessions to telehealth platforms, commonly known as telepsychology. Although there has been a gradual return to in-person services as COVID-19 restrictions eased, telepsychology continues to be widely employed, to a greater extent than before the pandemic. Pierce et al. (2021) reported that the use of telepsychology in clinical settings increased from 7.07% pre-pandemic to 85.53% during the pandemic.

Nickelson (1998) defines telehealth:

It encompasses the provision of remote services, which may be clinical or non-clinical in nature (McCord et al., 2020). The term ‘telehealth’ is specifically referred to as ‘telepsychology’ to maintain consistency and clarity throughout this study. MacMullin et al. (2020) state that the expedited use of telepsychology in response to the COVID-19 pandemic ensured service delivery while maintaining compliance with social distancing and self-isolation. As such, psychological practitioners considered telepsychology platforms to conduct assessments to mitigate pandemic-related challenges (Farmer et al., 2020). The importance of conducting psychological assessments remotely became apparent during the lockdown, and Martínez-Cengotitabengoa et al. (2022) suggested using automated mental health smartphone applications to increase individuals’ access to psychological assistance. However, this approach requires psychological practitioners to have sufficient knowledge of how to enhance the effectiveness of such applications.

In South Africa, psychological practitioners faced unique challenges that compounded the global difficulties experienced by the profession. A study examining the experiences of South African psychologists with telepsychology found that approximately 84% of respondents worked in private practice, with the majority being clinical psychologists (66.3%), followed by counselling psychologists (22.5%), educational psychologists (7.3%), and industrial psychologists (1.1%) (Raju et al., 2024).

During the initial lockdown, mental health professionals noted a decline in the use of mental health services, as patients missed therapy sessions because of fears of COVID-19, transportation issues, job losses, and unemployment (Nguse & Wassenaar, 2021). Conducting psychometric assessments proved challenging, especially in academia, where they had to suspend, stop, and adjust their assessments, although it is acknowledged that the private sector was able to be more resilient in this regard, as they had used online testing (Wigdorowitz et al., 2021). However, the introduction of telepsychology significantly increased telecounselling use, with client participation rising from 27% before lockdown to 64% during lockdown, representing a 37% increase (Dworzanowski-Venter, 2020).

The shift to telepsychology and online psychological assessment presented particular challenges in the South African context. Wigdorowitz et al. (2021) highlighted how conducting assessments at home blurs the personal and professional spaces, transferring all logistical, financial, and accountability burdens onto the test-taker and introducing significant risks to the test’s validity, including unauthorised assistance or exposure. The change in psychotherapy format, where the therapist is not in the same room as the patient and not able to pick up on non-verbal cues, impacted the employed on telepsychology, as well as other factors such as training of psychologists, guidelines from the Health Professions Council of South Africa (HPCSA), socio-economic factors, ethical considerations, and factors relating to patient and psychotherapist (Raju et al., 2024).

Chinyamurindi et al. (2021) examined the impact of COVID-19 on Industrial Organisational Psychologists in South Africa, finding that these professionals had to reimagine their roles during the pandemic. Their study found that participants expressed challenges affecting their practice and individual well-being. They also identified four new professional roles that are necessary responses to these challenges: ‘(1) prioritisation of personal physical and mental health; (2) more technological skills and acumen needed to adjust to the challenges posed by the pandemic, (3) promotion of continued professional learning; and (4) the necessity for support networks among practitioners’ (Chinyamurindi et al., 2021, p. 5). The study emphasised the need for Industrial–Organizational (I–O) psychologists to actively adapt their work to address the unique challenges and opportunities presented by COVID-19 in the South African context. These findings resonate closely with the present study, in which participants similarly described practice disruptions and relied on technology, peer support, and ongoing learning as some of the adaptive strategies.

Considering these challenges, cultivating resilience was paramount for psychological practitioners in private practice as it empowers them and ensures that their practices not only withstand the pandemic but also thrive in the face of adversity. Hillmann and Guenther (2021) defined organisational resilience as an organisation’s capability to sustain core operations and rapidly bounce back from disruptive challenges by marshalling and leveraging the necessary resources. During periods of significant volatility and uncertainty, organisations need to cultivate resiliency by equipping themselves to manage unforeseen circumstances effectively, recover from crises, and potentially pave the way for future success (Duchek, 2020). In this regard, digital technology emerged as a critical enabler of resilience; Khalil et al. (2022) found that it significantly strengthened SMEs’ capacity to endure and remain sustainable during the pandemic. This suggests that, despite its disruptive effects, the pandemic also acted as a catalyst for innovation, particularly within the digital domain (Kang, 2021). Consequently, businesses that embraced such adaptive strategies were better positioned to navigate the transition into the post-COVID-19 era (Hadjielias et al., 2022). As illustrated in Figure 1, resilient behaviour, resilient resources, and resilient capabilities influence a resilient response. An organisation’s reaction to adversity reflects its capacity for growth and knowledge acquisition (Hillmann & Guenther, 2021).

Distinguishing resilience in individual entrepreneurs and small business owners from that of their businesses can prove challenging (Gianiodis et al., 2022), considering the strong positive correlation between the two (Fatoki, 2018). On an individual level, psychological practitioners’ resilient behaviour and coping strategies can influence the success of their private practices during a pandemic. In terms of resilience resources, relational resources suggest the company’s internal and external relationships, such as employees, colleagues, and other external networks, which may also include organisations such as the Psychological Society of South Africa (PsySSA) and the Society for Industrial and Organisational Psychology of South Africa (SIOPSA). Emotional resources refer to friendships and support structures, cognitive resources imply having the right skills and competencies, and structural resources refer to organisational processes, structures, and systems (Richtnér & Löfsten, 2014). Resilience capabilities involve anticipating possible disturbances, managing them effectively when they emerge, and returning to full functionality (Duchek, 2020). However, even though psychological practitioners can anticipate certain risks and possibilities, some events cannot be planned (Hillmann & Guenther, 2021), such as the COVID-19 pandemic.

To strengthen SMEs’ resilience, Sharma and Rai (2023) recommended proactive financial planning to address uncertainties within the business environment. By developing financial strategies that account for potential risks and contingencies, SMEs could mitigate challenges. Insurance policies involving regular premium payments serve as a protective mechanism amid volatile business environments. Another resilience capability is sense-making (Hillmann & Guenther, 2021). Weick et al. (2005) explain sense-making as the process of transforming circumstances into a situation that is explicitly understood in words and serves as a starting point for action. Because the COVID-19 pandemic was an unexpected event, many businesses, including psychological practitioners’ private practices, had to go through a sense-making process, which may lean toward identifying alternative courses of action or engaging in further thoughtful consideration.

Psychological practitioners’ private practices could respond to the pandemic by maintaining their functions (resistance), having time for recovery, and accessing resources to maintain stability. Maintaining functions (resistance) entails ensuring that the organisational configurations, such as its structure, strategies, or way of doing things, remain the same during a disruption (McCarthy et al., 2017). Moreover, SMEs can mitigate the adverse impacts of external crises by maintaining a positive outlook (Grözinger et al., 2021). Gilly et al. (2014) propose that the organisation either has sufficient skills, knowledge, and systems in place to respond adequately to a crisis, or lacks sufficient information to deal with the disturbances and must utilise internal skills to generate creative ideas to respond effectively. If internal skills are limited, external assistance may be sought (Gilly et al., 2014). In terms of recovery time, Dua et al. (2020) suggest that large corporations tend to recover more quickly than small businesses due to greater financial stability. However, small businesses need to capitalise on their flexibility, and the pace at which organisations adapt is growing exponentially as it becomes essential for their survival and long-term viability (Chapman Cook & Kurau, 2023). In addition, Baker and Nelson (2015) discuss the use of entrepreneurial bricolage, which involves using available resources to solve new problems while also seeking opportunities. A resilient business can also effectively manage internal transformations resulting from external pressures. This includes being able to adapt to the new environment, reinvent the organisation and learn from those experiences.

Lee et al. (2023) report significant innovation across products, services, and delivery methods during the pandemic, with psychology similarly transforming through digital approaches to assessment, diagnosis, and psychotherapy using telepsychology platforms (Walker, 2023). Emerging work trends continue to reshape human behaviour, necessitating the integration of advanced technologies such as virtual reality, big data, and artificial intelligence (Gado et al., 2022; Kosinski, 2023; Weigel et al., 2023). Engaging with these innovations, referred to as computational psychology, enables psychological practitioners to remain relevant in the information age rather than relying solely on computer scientists and engineers (Kosinski, 2023). Consequently, acquiring digital skills is essential for effective service delivery (Dobson et al., 2022), while continuous professional development remains critical for maintaining competence and fostering innovation (Rossouw & Hatty, 2013), and is a requirement for practitioners registered with the Health Professions Council of South Africa (HPCSA).

In this study, an interpretivist research approach grounded in hermeneutic phenomenology was adopted. The hermeneutic phenomenological qualitative inquiry explored the lived experiences of psychological practitioners whose private practices were impacted by COVID-19.

The participants were asked to explain the impact of COVID-19 on their private practices. From the discussions and data interpretation, COVID-19’s impact on private practices was significant and emerged as a main theme. This theme consisted of the following sub-themes: Business and financial impact.

Adaptation strategies are measures that psychological practitioners implemented after COVID-19 affected their businesses and finances. This theme consisted of the following sub-themes: Coping mechanisms, network of support, adaptability and resilience, and future financial planning.

Two themes were identified: COVID-19’s impact on private practices and adaptation strategies, representing participants’ lived experiences of its impact on their private practices. Figure 2 provides an overview of the study’s themes, sub-themes, and categories.

COVID-19’s negative impact on psychological practitioners’ private practices emerged as the study’s first main theme. Empirical findings showed a shift from thriving practices pre-pandemic to businesses struggling to survive due to the lockdown. The pandemic led to numerous business closures (Sujová & Kupčák, 2024) and impacted various aspects of business operations (Engidaw, 2022). One participant closed their practice to seek full-time employment due to financial difficulties. Rather than merely an external business challenge, practitioners interpreted the pandemic as threatening to their professional identity, existential purpose, and sense of security. Their sense-making revealed tensions between who they understood themselves to be as professionals and what the pandemic’s restrictions allowed them to do, creating existential dissonance that required active meaning-making to navigate.

As restrictions were lifted, some work opportunities emerged, although not significantly. As clients resumed therapy, a shift from face-to-face sessions to virtual platforms became imminent (Sánchez-Guarnido et al. (2021), as confirmed by all participants. They had to transition to telepsychology, and their attitudes shifted positively; they ultimately became more receptive to this new approach to therapy (Sampaio et al., 2021).

Most participants favoured telepsychology despite initial reluctance among some. Participants acknowledged that the need to adapt was crucial because of limited business opportunities during the pandemic. The use of telepsychology in clinical settings increased from 7.07% pre-pandemic to 85.53% during the pandemic (Pierce et al., 2021). Findings revealed one practitioner experienced challenges transitioning to online platforms, including connectivity issues and difficulty reading non-verbal cues. Despite these challenges, telepsychology continued to evolve post-pandemic, with usage estimated at 34.96% (Pierce et al., 2021). The pandemic necessitated modifications to in-person psychometric assessments and procedures to comply with lockdown protocols (Wigdorowitz et al., 2021). Coaching offerings also adapted, with practitioners leveraging online possibilities to prepare for future pandemics (Passmore et al., 2023). Notably, some psychologists across different registration categories had already begun incorporating telecommunications into their professional activities before the pandemic (Cooper et al., 2019).

Participants reported challenges in virtual work, including difficulty interpreting non-verbal cues and adapting psycho-educational and psycho-motor assessments. Literature confirms the importance of non-verbal communication in counselling (Mitzkovitz et al., 2022), noting that its absence in online settings can be disadvantageous (Poh Li et al., 2013). Moreover, most psychological assessments are standardised for in-person use (Mulligan & Ayoub, 2023), complicating the transition to virtual formats.

Another factor discovered was the financial struggle and need for survival stemming from a lack of work opportunities. Business owners who experienced temporary closures were likely to face lasting effects because of the lockdown’s financial setbacks (Kalogiannidis, 2020). To cope, many participants relied on personal savings and financial support from friends and family or resorted to borrowing from financial institutions. Declining revenues and capital prompted SMEs to increase their reliance on financial support (Yao & Liu, 2023). While these measures helped psychological practitioners maintain financial stability, they also created debt, delaying the recovery of profits. Some practitioners only fully regained their workload and revenue levels in 2022. Therefore, regarding financial impact and recovery, the findings support Dua et al.’s (2020) observation that small businesses recover more slowly than large corporations. Furthermore, the findings confirm the existing organisational resilience theory in addressing the research question of how psychological practitioners experienced and made sense of practising during the COVID-19 pandemic. Hillmann and Guenther’s (2021) Conceptual Integrative Model proposes that organisational responses to adversity reflect capacity for growth and knowledge acquisition. This study’s findings support this theoretical framework by demonstrating that practitioners did indeed adapt and develop new capabilities.

This theme focused on the adaptation strategies that psychological practitioners implemented to offset the business and financial impact of the pandemic. Drawing on Hillmann and Guenther’s (2021) conceptual integrative model, as explained in the literature review, psychological practitioners in this study implemented adaptive tactics to navigate the impact of COVID-19 while ensuring the sustainability of their private practices. In terms of resilient behaviour, participants employed diverse mechanisms to cope with the pandemic, including problem-focused (dealing with the source of stress) and emotion-focused strategies (managing emotional reactions) (Kamble, 2017). Participants’ coping mechanisms included drawing strength from their spiritual orientation and faith, seeking solutions, and enrolling in therapy to help regulate emotions and thinking, reflecting adaptive coping skills that are beneficial to individuals’ health (Holton et al., 2016). Additionally, avoidant-focused coping was mentioned, including social diversion, mental disengagement (e.g. denial), and physical distancing from the situation (Allen, 2021; Wu et al., 2020). One participant initially resisted changes to their counselling practice but eventually adapted after acknowledging COVID-19’s impact on clients and revenue.

Resilient resources refer to internal and external relationships (Hillmann & Guenther, 2021). Nurturing and sustainable relationships with family, friends, colleagues, and peers were seen as invaluable sources of emotional support during trying times. This support helps to strengthen individuals’ resilience and capacity to confront hardship effectively (O’Neil & Kruger, 2022). Some participants called for greater visibility and involvement by professional bodies such as HPCSA, SIOPSA, and PsySSA to provide guidance and support during crises.

In continuing to build resilience, participants needed to remain positive and embrace change, including the transition to telepsychology. The study highlights that post-pandemic, psychological activities like counselling and assessments became mostly virtual, with technology introducing new work strategies. This finding aligns with Cooper et al. (2019), who noted the ongoing impact of the technological revolution on psychological practice, teaching, and research. Digital technologies have prevented numerous businesses from facing bankruptcy (Santos et al., 2023). Participants stated the need to further digitise in-person psychometric assessments and emphasised the role of networking and marketing in staying competitive. Technology integration, particularly in marketing (digital marketing), is an essential business strategy (Suherlan & Okombo, 2023).

Furthermore, the study’s findings indicate that diversifying one’s services and establishing multiple income streams are of utmost importance. Participants explored strategies such as providing additional services, working in other sectors, and pursuing opportunities other than psychology. This strategic approach can help to enhance financial stability (Han et al., 2019), broaden market reach, secure a competitive edge, and outperform competitors (Bachtiar, 2020).

Regarding resilience capabilities, COVID-19 required sense-making, where people use reasoning to favourably adapt to their environment (Turner et al., 2023). Participants made sense of the pandemic and employed strategies to ensure that their private practices thrive despite harsh conditions. They also suggested future financial planning strategies, including maintaining sufficient business savings for emergencies and having disaster-specific insurance. Anticipation is ultimately key to preparing for future crises.

In closing, the study’s general findings revealed that the consequences of the pandemic permeated the private practices of psychological practitioners, overturning traditional ways of working, limiting work opportunities, and affecting the financial stability of their business. It also highlighted the remarkable adaptability of both the practitioners and their practices. The robust strategies practitioners cultivated in response to the crisis were reported, offering an instructive framework for resilience-building and recovery during a pandemic or other possible ‘black swan’ events. An analysis of the literature indicates that studies on SME resilience are mainly theoretical, with limited empirical evidence to support them (Erdiaw-Kwasie et al., 2023). This study is therefore essential as it offers real-world insights and concrete data on the resilience and competitiveness of SMEs, filling a significant gap in the current theory-dominated landscape.

Several practical recommendations emerge from this study. Firstly, financial preparedness is essential; practitioners are advised to maintain 3–6 months of operating expenses in reserve, as recommended by participants who successfully navigated the crisis. Secondly, proactive investment in reliable telepsychology platforms and practitioner training. Thirdly, service diversification strengthens sustainability by reducing dependence on a single revenue stream; practitioners should consider expanding into coaching, organisational consulting, and online training, while broadening their client base to include both individual and corporate clients. Collectively, these strategies enhance practice resilience and better position practitioners to withstand future disruptions.

Moreover, entrepreneurs can draw essential lessons from this research during ‘black swan’ events in the future. Private practices’ ability to respond to a crisis with agility is vital for their continuity (Mills & Keremah, 2020).

Furthermore, the study highlighted a pressing need for increased visibility and support from professional bodies such as HPCSA, SIOPSA, and PsySSA. These associations could create forums and support structures to aid professionals during a pandemic (Chinyamurindi et al., 2021). A focus on careful financial planning and savings also ensures long-term financial health. Careful financial planning and increased business savings were thus highlighted as protective measures for future challenges (Demary et al., 2021).

Limitations of the study include potential researcher bias stemming from personal experience, which may have influenced themes and sub-themes during data analysis. However, the themes and sub-themes were constructed from the data. Smith and Noble (2025) note the importance of understanding bias across different stages of research. Reflexivity, or recognising the researcher’s role in the research process, helps manage these biases by acknowledging their impact on procedures and results (Haynes, 2012). Additionally, online interviews were affected by load-shedding and connectivity issues, which were addressed by rescheduling. Furthermore, the small sample size, which was valued for exploring intricate details of participants’ lived experiences, limits the generalisability of the findings.

Future research suggestions include studying private practices’ performance post-COVID-19, examining the impact of the pandemic on psychologists who were essential workers, and exploring the integration of artificial intelligence and virtual reality to address challenges in interpreting non-verbal cues in telepsychology.