The Economic Costs of the Russia-Ukraine War: A Synthetic Control Study of (Lost) Entrepreneurship

Audretsch, David B.; Momtaz, Paul P.; Motuzenko, Hanna; Vismara, Silvio

doi:10.2139/ssrn.4378827

Cited by 2 publications

(2 citation statements)

References 29 publications

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“…The last few years have been challenging for the business community, such as the Covid-19 pandemic, Russia-Ukraine conflicts, and oil and gas supply chain challenges (Juergensen et al, 2020;Kalemli-Ozcan et al, 2020;European Parliament, 2022;Audretsch et al, 2023). These challenges and hurdles strongly push businesses and firms to work towards sustainability, consider the significance of sustainability, determine how to sustain themselves in different situations, survive various challenges, prolong Earth's resources, and address many more issues.…”

Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

SMEs sustainability: The role of human resource management, corporate social responsibility and financial management

Belas,

Jan,

Hlawiczka

et al. 2024

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Research background: The sustainability of small- and medium-sized enterprises (SMEs) represents a significant scientific and professional problem in the current turbulent period because these enterprises play an important role in any country’s economic and social systems. Purpose of the article: This paper aimed to define the significant sustainability factors of small and medium-sized enterprises and to quantify their impact and importance on the sustainability of SMEs. The areas of Human Resource Management, Corporate Social Responsibility, and financial management were defined as significant sustainability factors. Methods: Empirical research, on which the scientific hypotheses were formulated and evaluated, was conducted in June 2022 in V4 countries (Czech Republic, Slovak Republic, Poland, and Hungary) using a structured questionnaire. The study accumulated a sample of 1398 respondents. Data collection was conducted through an external agency, MN FORCE, operating in Central European countries. The Computer Assisted Web Interview (CAWI) method was used to record respondents’ perceptions. Descriptive statistics, correlation analysis, and linear regression analysis were used to evaluate the hypotheses. Findings & value added: The research showed that all defined factors in the areas of Human resource management (HRM), Corporate social responsibility (CSR), and financial management of the firm had an impact on defined sustainability attributes. The greatest impact was found on the firm’s financial management, followed by CSR and HRM. The empirical results confirm that the intensity of the independent variables varies across the V4 countries. These results also show that the intensity of the selected HRM, CSR, and financial management factors of a firm is higher in the integrated models than in the models for individual V4 countries. The research results have shown that a range of factors determine the right attitude towards the sustainability of companies. In this context, economic policymakers and entrepreneurs must perceive sustainable growth as complex and apply a systemic approach to its design and implementation.

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Section: Literature Review and Theoretical Frameworkmentioning

confidence: 99%

SMEs sustainability: The role of human resource management, corporate social responsibility and financial management

Belas,

Jan,

Hlawiczka

et al. 2024

View full text Add to dashboard Cite

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“…It does not only impose a terrible human cost but has also strongly affected the (European) economy. While the long-term and historical impacts of the war cannot be assessed at this point, the short-term impacts are already massive (Audretsch et al, 2023;Liadze et al, 2023). Prior research has investigated how stock markets, commodities markets, and inflation levels have been affected by the Russian war against Ukraine (Derindere Köseoğlu et al, 2023;Izzeldin et al, 2023;Maurya et al, 2023).…”

Section: Introductionmentioning

confidence: 99%

Entrepreneurial finance in Europe and the Russian war against Ukraine

Kraemer-Eis,

Block,

Botsari

et al. 2024

J Technol Transf

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Prior research has investigated how the prices of stocks and commodities as well as inflation levels have been affected by the Russian war against Ukraine. So far, however, we know little about the impacts of the war on the entrepreneurial finance sector. Prior research on the effects of unexpected exogenous crisis events on entrepreneurial finance suggests a strong negative impact on new and follow-on funding for entrepreneurial ventures. Our study regards the Russian war against Ukraine as an unexpected exogenous crisis event and explores its impact on the entrepreneurial finance sector. It goes beyond a mere sentiment and impact analysis and also explores the underlying reasons and mechanisms as well as potential response and coping strategies employed by entrepreneurial finance investors. Based on two surveys of European venture capital (VC) and private equity (PE) investors, we find that the war had a strong negative impact on the two types of investors and their respective funds. Both VC and PE investors report more risk-aversion of limited partners (LPs) and LPs leaving the market as important challenges resulting in an overall lower willingness of LPs to invest. This applies in particular to banks, insurance funds, and pension funds. On the portfolio firm level, securing equity financing and maintaining liquidity were considered pressing issues. Overall, the situation seems to be more difficult for portfolio companies of VC as compared to PE investors. For the former, the financing- and liquidity-related issues seem to be more existential and survival-threatening. Responding to these challenges, both VC and PE investors altered their industry focus and put more emphasis on entrepreneurial experience. Financial investment selection criteria such as financial valuation, profitability, and cash- as well as revenue-generating capacity also increased in importance. Again, differences between VC and PE investors exist. Our study has implications for entrepreneurial finance theory and practice and concludes with an agenda for research on the impacts of the Russian war against Ukraine on entrepreneurial finance.

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The Economic Costs of the Russia-Ukraine War: A Synthetic Control Study of (Lost) Entrepreneurship

Cited by 2 publications

References 29 publications

SMEs sustainability: The role of human resource management, corporate social responsibility and financial management

SMEs sustainability: The role of human resource management, corporate social responsibility and financial management

Entrepreneurial finance in Europe and the Russian war against Ukraine

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