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We aim to explore how the COVID-19 crisis has initiated entrepreneurship amongst micro-scale businesses in the notably vulnerable street food industry. We highlight Malaysian street food vendors’ remarkable resilience as they evolved from informal enterprises into innovative entrepreneurs during the pandemic. This involves comprehending the pandemic’s impact and the coping strategies these businesses adopt to endure, evolve and thrive.

We carried out a semi-structured interview with 20 street food vendors in Kuala Lumpur, Malaysia. By using a qualitative approach and integrating theories on appraisal, resource management and self-regulated activities, this paper explores vendors’ experiences on their journey towards becoming entrepreneurs regardless of limited resources.

Despite the disruption, COVID-19 offers a crucial wake-up call even for micro-scale businesses. We discover the capability of street food vendors to outlast crisis through transformation into individuals with an entrepreneurial mindset. They adapted by diversifying their offerings and implementing new strategies like digital marketing and e-commerce. We also emphasise the contribution of family members in providing psychosocial support and navigating business challenges as an advantage of employing a highly self-efficacious individual within the group. This transformation not only ensures the survival of micro-scale enterprises but also underscores their potential to thrive and innovate, even in the face of adversity.

This paper extends the existing literature on street vending by integrating the appraisal theory of emotion, resource-based view theory and self-efficacy theory to explore how street food vendors with limited resources have managed to transform the informal business nature into an entrepreneurial environment under the pressure of a crisis.