Introduction: The Covid19 pandemic meant that many organizations suffered profitability problems – in both the public and private sectors. Different industries were affected in different ways, where, for example, the construction industry experienced a boom while the service sector stagnated. Sweden had less extensive restrictions, but despite this, business was significantly affected.

Aim: Since archipelagos are attractive seasonal meeting places with many bars and restaurants, the aim of this work is to investigate how the hospitality industry in these remote places handled the ongoing Covid-19 crisis and what strategies they adopted to survive the crisis. 

Theory: The theoretical frame of reference is based on phenomenography, which is used as a theoretical as well as methodological approach in this work. The theoretical frame of reference helps to provide a picture of how social capital and institutional factors strongly contribute to setting the framework for the possibility of entrepreneurship, especially in peripheral regions. Method: To fulfill the purpose of the study, individual interviews as well as group interviews with entrepreneurs around the archipelago have been reviewed, which have then been contrasted with existing business economics research where the results have been interpreted using a phenomenographic analysis model. 

Results: The results show that the islands are characterized by limitations regarding both social and practical infrastructure, as well as other types of obstacles related to their geographically exposed location. The result also shows that entrepreneurial innovations arise in relation to these limitations where the entrepreneurs who work with few resources still manage to run their businesses with profit. 

Conclusion: The study shows that there are great similarities between businesses within Sweden's archipelago in times of crisis. A decisive factor in how well this cope with a crisis lies in how cooperation works with society's formal institutions. However, more peripheral regions fare better than those close to large cities. An explanation for this, may lie in the fact that they are more used to fending for themselves. Due to a lack of resources, social capital becomes an important factor in mitigating the risks of a crisis.