Agility or Wait-and-See? How the Covid-19 Crisis Impacts Entrepreneurs’ Well-being across Countries

Stephan, Ute; Zbierowski, Przemysław; Pérez‐Luño, Ana; Wach, Dominika; Cabañas, Marisleidy Alba; Barki, Edgard; Benzari, Alexandre; Bernhard-Oet, Claudia; Boekhorst, Janet A.; Dash, Arobindu; Efendić, Adnan; Eib, Constanze; Hanard, Pierre-Jean; Iakovleva, Tatiana; Kawakatsu, Satoshi; Khalid, Saddam; Leatherbee, Michael; Li, Jun; Parker, Sharon K.; Qu, Jingjing; Rosati, Francesco; Sahasranamam, Sreevas; Sekiguchi, Tomoki; Salusse, Marcus Alexandre Yshikawa; Thomas, Nicola Anne; Torrès, Olivier; Ward, M.K.; Wiklund, Johan; Williamson, Amanda Jasmine; Zahid, Muhammad Mohsin

doi:10.5465/ambpp.2021.11848abstract

Cited by 13 publications

(17 citation statements)

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“…Moreover, more than 70% of this loss would be attributable to the temporary disruption of the supply chain linkages with the European Union. Similar findings were reported for 5,206 entrepreneurs in 23 developed and developing countries between April 2020 and January 2021 by Stephan et al (2021). However, Belitski et al (2022) submitted that real wages in specific sectors might rise as the disease reduces the supply of workers, leaving survivors in a stronger bargaining position.…”

Section: Literature Reviewsupporting

confidence: 72%

“…The crisis could produce a new set of entrepreneurs who are highly competitive and even strategic, making them easily adapt to new situations or conditions through their innovative capacity. While the findings align with those of Akpan, Udoh, and Adebisi (2020), Fritscha et al (2021), and Haltiwanger (2022), they seem to contradict the findings of Gourinchas and Kalemli-Özcan (2020), Stephan et al (2021), and UNCTAD (2022) that COVID-19 pandemic adversely affects entrepreneurial activities. From the US Census Bureau’s monthly and weekly Business Formation Statistics, Haltiwanger (2022) observes a considerable surge in applications for new businesses in the second half of 2020.…”

Section: Empirical Results and Discussioncontrasting

confidence: 50%

“…Our findings differ from those of the earliest studies as we specifically focus on how COVID-19-related job loss in March 2020 motivates households to be innovative in initiating, developing a new business idea or new product line, and operating nonfarm enterprises since January 2021. However, Gourinchas and Kalemli-Özcan (2020), Stephan et al (2021), and UNCTAD (2022) explore how the COVID-19 pandemic pushes existing enterprises out of business or adversely affects the enterprises’ performance. To this end, we can safely infer that the COVID-19 pandemic results in business formation among households out of necessity to devise a livelihood after the crisis.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

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COVID-19 Pandemic and Household Entrepreneurship in Nigeria: Do Crises Create Necessity-driven and/or Innovative Entrepreneurship?

Wahab,

Jibir,

Abdu

2023

Global Journal of Emerging Market Economies

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The need for promoting entrepreneurship stems from the efforts to provide long-lasting solutions to the challenges of poverty and unemployment. This becomes even more crucial in worldwide crises such as the COVID-19 pandemic. The COVID-19 pandemic has not only had a momentous effect on businesses and economies but has also driven us to recognize the importance of entrepreneurship. This study explores the combination of important entrepreneurial and household factors that drive the growth of new businesses during and after the crisis. This study applies the Round 2 data from the Nigeria National Longitudinal Phone Survey Phase 2 conducted by the National Bureau of Statistics in collaboration with the World Bank between November 2021 and August 2022. The logistic regression model analyzes how job loss due to the pandemic correlates with the probability of household heads starting and operating an enterprise immediately after the pandemic and the probability for the existing household entrepreneurs to innovate. The findings show that necessity-driven entrepreneurship became effective immediately after the COVID-19 pandemic in Nigeria, and innovation and opportunity recognition were more relevant as success factors during periods of crisis than during regular times. This is because the crisis produced a new set of highly competitive and strategic entrepreneurs that quickly adapted to new situations or conditions through their innovative capacity. Several policy recommendations derived from the study’s empirical findings are discussed in the conclusion section of the article. JEL Classification I1, D1, L26, F44, C35, N97

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Section: Literature Reviewsupporting

confidence: 72%

Section: Empirical Results and Discussioncontrasting

confidence: 50%

Section: Empirical Results and Discussionmentioning

confidence: 99%

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COVID-19 Pandemic and Household Entrepreneurship in Nigeria: Do Crises Create Necessity-driven and/or Innovative Entrepreneurship?

Wahab,

Jibir,

Abdu

2023

Global Journal of Emerging Market Economies

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“…Many established and better-resourced firms were struggling to survive in an economic sense as they faced restricted trading conditions, new challenges associated with innovation and patenting activities, reduced income streams and liquidity crises (Cowling et al ., 2020; Larson, 2021; Brown and Cowling, 2021). However, the pandemic also affected firms in a non-financial direction, psychologically impacting all employees, business owners and overall well-being (Yue and Cowling, 2021; Stephan et al ., 2021, 2022). Despite the that setting up a new business in the midst of a global Covid-19 pandemic does not appear on the face of it to be a great idea, many individuals living in the UK also exploited new business opportunities and established new ventures as a response to the considerable consumer and market shifts (Brown et al ., 2020; Jallow et al ., 2020; Bentall et al ., 2021).…”

Section: Introductionmentioning

confidence: 99%

Who is brave enough to start a new business during the Covid-19 pandemic?

Cowling

Dvouletý

2023

BJM

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PurposeSince introducing the UK start-up loan (SUL) Scheme in 2012, 82,809 new start-ups have been supported with loans totalling £759m. Even during the Covid-19 crisis, new business start-ups supported by SUL did not abate. The authors ask whether the entrepreneurs starting businesses during the Covid-19 crisis were different from those becoming entrepreneurs before the pandemic. This paper aims to discuss the aforementioned question.Design/methodology/approachThe authors model the differences between pre-Covid-19 business start-ups and Covid-19 start-ups. The administrative data obtained from the UK Government Department for Business, Energy and Industrial Strategy (BEIS) represent information about individual loan records for 82,798 individuals and total lending of £759m between 2012 and 2021. The probit regression model with dependent variable coded one if the start occurred after February 2020 and zero between 2012 and February 2020, was estimated.FindingsThe study’s findings show that both groups of entrepreneurs differ in many facets. The new Covid-19 entrepreneurs are older, more likely to have a graduate-level education and are significantly more likely to make this transition from full-time waged employment or inactivity. Furthermore, they are more likely to set up in manufacturing industries at the business level than their pre-Covid-19 counterparts who favoured service sectors. Finally, their initial lending to support the start-up is much higher.Originality/valueThis study provides value for the policymakers responsible for the administration of the SUL scheme, and it also contributes to the body of knowledge on the effects of the global Covid-19 pandemic.

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“…In contrast, this number was only 27% of salaried employees [ 23 ]. The pandemic not only impacted self-employed people’s businesses, but it also increased uncertainty and stress, and reduced social contact and support, which had a negative impact on their well-being [ 24 , 25 ]. For example, a large global study found that self-employed people’s well-being was on average 12% lower during the pandemic compared to pre-pandemic levels [ 25 ].…”

Section: Introductionmentioning

confidence: 99%

A comparative study of governmental financial support and resilience of self-employed people in Sweden and Canada during the COVID-19 pandemic

Hansson,

MacEachen,

Landstad

et al. 2023

International Journal of Circumpolar Health

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Globally, self-employed people were among the hardest hit by the repercussions of the COVID-19 pandemic and faced hardships such as financial decline, restrictions, and business closures. A plethora of financial support measures were rolled out worldwide to support them, but there is a lack of research looking at the effect of the policy measures on self-employed people. To understand how different governmental financial support measures enhanced the resilience of the self-employed and improved their ability to manage the pandemic, we conducted a mixed-method study using policy analysis and semi-structured interviews. The documents described policies addressing governmental financial support in Sweden and Canada during the pandemic, and the interviews were conducted with Swedish and Canadian self-employed people to explore how they experienced the support measures in relation to their resilience. The key results were that self-employed people in both countries who were unable to telework were less resilient during the pandemic due to financial problems, restrictions, and lockdowns. The interviews revealed that many self-employed people in hard-hit industries were dissatisfied with the support measures and found them to be unfairly distributed. In addition, the self-employed people experiencing difficulties running their businesses reported reduced well-being, negatively affecting their business survival.

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Agility or Wait-and-See? How the Covid-19 Crisis Impacts Entrepreneurs’ Well-being across Countries

Cited by 13 publications

References 0 publications

COVID-19 Pandemic and Household Entrepreneurship in Nigeria: Do Crises Create Necessity-driven and/or Innovative Entrepreneurship?

COVID-19 Pandemic and Household Entrepreneurship in Nigeria: Do Crises Create Necessity-driven and/or Innovative Entrepreneurship?

Who is brave enough to start a new business during the Covid-19 pandemic?

A comparative study of governmental financial support and resilience of self-employed people in Sweden and Canada during the COVID-19 pandemic

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