The Covid-19 pandemic and entrepreneurship: some reflections

Published on Nov 27, 2020in International Journal of Emerging Markets2.488
· DOI :10.1108/IJOEM-05-2020-0491
Francisco Liñán30
Estimated H-index: 30
,
Inmaculada Jaén6
Estimated H-index: 6
Sources
Abstract
Purpose The Covid-19 pandemic has affected the world in an unprecedented manner The economic recession in 2020 is expected to be the most serious since the Second World War This study aims to analyse the likely consequences of the Covid-19 pandemic crisis on entrepreneurship and new venture activity Design/methodology/approach The paper focuses first on the major shocks caused by the pandemic that may affect entrepreneurial activity To do so, the authors briefly review the literature about the previous financial crisis and its effects on entrepreneurship Then, the manuscript means to disentangle how these shocks will impinge on the different stages and motives within the entrepreneurial process Findings This analysis reveals that the consequences of the pandemic for entrepreneurship will be generally damaging, but they may not be so tremendously negative as originally thought We could initially expect a broad downturn in entrepreneurial activity Soon after that, however, necessity entrepreneurship is likely to boom At the same time, but to a lesser extent, high-potential entrepreneurial activity could also be fostered, provided the recovery is quick and there is sufficient support from the environment and institutions Originality/value This is probably one of the first academic reflections on the likely effects of the Covid-19 pandemic on entrepreneurship It specifically addresses the role of institutions and how they may differently affect necessity and opportunity entrepreneurship It also suggests interesting related research areas and some basic recommendations on how to help entrepreneurs overcome it
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#1José Ernesto Amorós (Tec: Monterrey Institute of Technology and Higher Education)H-Index: 24
#2Luciano Ciravegna ('KCL': King's College London)H-Index: 20
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This paper studies the effects of state fragility and economic development on necessity and opportunity-based individual entrepreneurial efforts. We contribute to the literature on the contextual determinants of entrepreneurship by examining multilevel data on 956,925 individuals from 51 countries for the period of 2005–2013. We show that state fragility has a positive effect on necessity-based entrepreneurial efforts while hindering opportunity-based efforts. Our findings illustrate that the le...
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#1Subhanjan Sengupta (Birla Institute of Management Technology)H-Index: 7
#2Arunaditya Sahay (Birla Institute of Management Technology)H-Index: 9
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Social entrepreneurship is well practiced and talked about in emerging economies. However, till date, no dedicated review and conceptual framework exists, synthesizing and integrating past social entrepreneurship research in the fast growing emerging economies, commonly known as BRIICS (Brazil, Russia, India, Indonesia, China, and South Africa). The purpose of this article is to bridge that gap by conducting an integrative review of 123 most relevant peer-reviewed scholarly articles, filtered ou...
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#2A Caetano (ISCTE-IUL: ISCTE – University Institute of Lisbon)H-Index: 3
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The aim of this study is to analyze the role of individual characteristics and social norms as variables that explain early-stage entrepreneurial activity before and during the European crisis. We used the Global Entrepreneurship Monitor Adult Population Survey data from Southern European countries (Greece, Spain, Italy and Portugal) and Northern European countries (Sweden, Norway and Finland) in 2007, 2010, 2012 and 2013. We performed logistic regression analysis to identify the role of individ...
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#1Tobias Kollmann (University of Duisburg-Essen)H-Index: 23
#2Christoph Stöckmann (University of Duisburg-Essen)H-Index: 12
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The present study introduces fear of failure as a responsive avoidance motive to the entrepreneurship literature and demonstrates its relevance as a psychological process in three experimental studies with nascent entrepreneurs. Drawing upon a social cognitive perspective on achievement motives, we show that fear of failure explains how obstacles encountered in the nascent phase affect individual entrepreneurial activity. We demonstrate that the perception of obstacles activates fear of failure,...
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This paper examines antecedents of high-quality entrepreneurship in European countries before and after the financial crisis that burst in 2008. In a context of ambitious entrepreneurship, we consider three quality aspects of early-stage entrepreneurship referring to innovativeness, export orientation, and high-growth intentions of entrepreneurs. Using microlevel data retrieved from Global Entrepreneurship Monitor (GEM) annual surveys, we investigate whether the role of gender, education, opport...
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This paper identifies the combinations of fundamental entrepreneurial factors that drive the growth of new businesses under different economic conditions. Using data from the Global Entrepreneurship Monitor (GEM) survey, the study focuses on two moments in Spain's recent economic cycle: the 2008 economic crisis and the economic boom prior to this downturn. The study presents an application of fuzzy-set qualitative comparative analysis (fsQCA) to identify the basic entrepreneurial characteristics...
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The aim of the work is to investigate the impact of a prolonged economic recession on the entrepreneurial intentions of young people (university students) distinguishing between propensity to start a new business (i.e. degree of interest in entrepreneurship) and perceived likelihood of becoming an entrepreneur (i.e. probability to succeed). Furthermore we verify if the recession strengthens the orientation to exploit new market opportunities, or simply supports self-employment objectives.Design/...
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#2Scott Gordon (University of Adelaide)H-Index: 16
We hypothesize that a major macroeconomic crisis triggers four alternative responses among nascent entrepreneurs: disengagement, delay, compensation, and adaptation. We also suggest that commitment and ambition (or “high potential”) moderate these responses. Our most important finding is the relative absence of behavioral crisis responses. However, crises may make high-tech founders become more likely to disengage, whereas the opposite holds for founders far into the process. Our study sheds lig...
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A growing body of evidence indicates that the U.S. economy has become less dynamic in recent years. This trend is evident in declining rates of gross job and worker flows as well as declining rates of entrepreneurship and young firm activity, and the trend is pervasive across industries, regions, and firm size classes. We describe the evidence on these changes in the U.S. economy by reviewing existing research. We then describe new empirical facts about the relationship between establishment-lev...
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Fear of failure can dominate the choices of individuals. We model its role in the decision to become an entrepreneur and subsequent investments made in pursuit of success using the framework of loss aversion. We show that when an individual's threshold for success is sufficiently high, fear of failure motivates additional investment. When the threshold for success is equal to the foregone outside option, on the other hand, fear of failure is always de-motivating. Finally, regardless of the succe...
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Abstract null null This study aims to explore the support and impede factors of entrepreneurial activities amidst the COVID-19 pandemic. By using the qualitative method, 18 in-depth interviews were conducted with entrepreneurs operating micro-, small- and medium-scale enterprises. Interviews were transcribed for content analysis to generate themes using NVivo 12. COVID-19 has adversely affected the entrepreneurial activity in Pakistan was a key theme found after analysis. Three main categories w...
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Purpose: The purpose of this study was to investigate the consequences of the economic shock caused by the COVID-19 pandemic on the entrepreneurial intentions of academic students. In addition, this research examined whether the pandemic reinforces the tendency to operate new businesses or represents a barrier to the pursuit of entrepreneurial opportunities. Design/methodology/approach: This study was conducted with a sample of university students. Risk perception and contextual variables were m...
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COVID-19 lockdown measures have largely been effective in curtailing the spread of the disease. Yet, its other effects have been profound and pervasive, exposing gender inequalities, reducing psychological sustainability, and causing economic hardship. Entrepreneurship, with its potential for effecting social good and sustainable economic development, has too been changed with studies finding a drop in entrepreneurship during the crisis. Yet, it is unknown how entrepreneurship may change after C...
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(1) Purpose: The main objective of this research was to determine if and how the COVID-19 pandemic impacted new entrepreneurial opportunities. The study also focused on finding the means of actions that can positively affect the future entrepreneurial field. (2) Methodology: Initially, the literature review was approached, the complementary evaluation of the researchers’ interest sustaining the timeliness of the analyzed topic. The empirical analysis implied conducting a multiple statistical reg...
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The present research aims to compare the entrepreneurial intention of university students before and during the Covid-19 pandemic. For this purpose, some dimensions were analyzed, such as the availability of this target audience to undertake an activity at their own risk, the preference for a future while employed by others, their perception of the values that society places on entrepreneurship, and the entrepreneurial abilities/skillsets. A comparative study of a quantitative nature was used, a...
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Objective: The major objectives of the article were to explore the effects of the fear and anxiety of Covid-19 and business opportunity recognition on start-up self-efficacy, entrepreneurial intention, and behaviour, as well as to test entrepreneurial intention-behaviour association. Research Design & Methods: The study was performed by means of an online survey questionnaire conducted on 405 students at a Vietnamese university. The survey questionnaire was developed based on prior research. Str...
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