The COVID-19 Crises: The Threats, Uncertainties and Risks in Entrepreneurial Development

Hossain M.I., Tabash M.I., Siow M.L., Ong T.S., Anagreh S.

AbstractThis research examines a variety of restrictions preventing Bangladeshi youth, particularly Generation Z university students, from becoming involved in entrepreneurship. Moreover, the study examines the influence of Entrepreneurial Attitude (EA), Subjective Entrepreneurial Norms (SEN), Entrepreneurial Perceived Behavioural Control (EPBC), and Entrepreneurial Resilience (ER) on Entrepreneurial Intention (EI) of Bangladeshi Gen Z university students. A systematic literature review methodology following PRISMA procedure was performed to identify the relevant articles. A quantitative method with a positivism philosophy, cross-sectional time horizon and deductive approach was applied to the study. The data of 206 university students from the BBA department of ten universities were collected using convenience sampling and a self-administrated structured questionnaire survey. SPSS 26.0 and Smart PLS 3.0 were used to analyse the data. The output shows a positive and significant association amongst EA, SEN, EPBC, ER, and EI. Various constraints were identified from the literature and ranked based on the respondents’ feedback. This research will help entrepreneurs, scholars, policymakers and practitioners to build the entrepreneurial ecosystem and develop young people’s understanding of the entrepreneurial decision process and the importance of ER. This paper contributes through empirical investigation to an understanding of the actions that prevent Gen Z students from entrepreneurial activities; decisions are affected by socio-psychological constructions integrating ER with the Theory of Planned behaviour (TPB) model. Triple, Quadruple and Quintuple Helix models are considered supporting theories in this study to shed light on tackling the constraints. To the best knowledge of the researcher, integrating ER with TPB model’s constructs is a pioneer scholarly contribution in the context of South-East Asian, specifically Bangladeshi Gen Z students.

Chapman Cook M., Karau S.J.

PurposeThe global spread of coronavirus brought the economy to a screeching halt as entrepreneurs faced constraints in their ability to transact business. Mandatory shutdowns of businesses, travel restrictions and other measures were taken. This study aimed to explore adaptations of small businesses for surviving in such a turbulent environment.Design/methodology/approachThe authors conducted exploratory research with detailed interviews with 15 small business owners from various industries in rural communities in the Midwestern United States.FindingsThe study revealed a variety of strategic responses and highlighted creativity and flexibility in coping with uncertainty. Business owners adapted their strategies regarding processes, products and target customers to remain flexible and reallocate resources to meet ever-changing demands. Some created and strengthened relationships with other business owners, clients, customers and the community. Several showed optimism for the long-term, whereas others viewed survival as contingent on a speedy return to normalcy.Research limitations/implicationsA modest sample of fifteen small business owners were interviewed in similar communities in the Midwest using snowball sampling. With a larger sample size and more variance in age and gender, interview responses may be more diverse and potentially more generalizable. However, the current research may provide some unique insights for younger, up-and-coming entrepreneurs in smaller cities and communities regarding some effective small business and community response to uncertainty and change.Originality/valueThe coronavirus pandemic provided a unique environment to gain insight into entrepreneurial adaptation to unpredictable crisis situations and highlights the importance of assessing and adjusting business strategies to constantly changing demands. The authors also present an emergent theoretical process model of small business adaptive responses to uncertainty that summarizes the major themes derived from the interview responses.

Addo S.D., Asante J.

The purpose of the paper was to assess the effect of financial literacy on the access to finance of SMEs. Thus, the study examined the effect of financial literacy on SMEs’ access to finance in developing economies. Data for the study was collected from SME owners/managers in Ghana through questionnaires. 396 questionnaires were analyzed. The Partial Least Square Structural Equation Modelling (PLS-SEM) was used as the main analytical tool. The study found a significant positive association between financial literacy and access to finance. Financial literacy also had a positive significant effect on risk attitude, whereas the link between risk attitude and access to finance was also found significant. Again, the study showed that risk attitude matters in the nexus between financial literacy and access to finance, as it was found to mediate the link between financial literacy and access to finance. Our findings affirm the dual process theory of reasoning where an entrepreneur’s decision to access finance is guided by two systems of thinking: the automatic unconscious system based on their risk attitude, and the deliberate conscious system where different considerations and models are weighed up based on their financial literacy, both of which serves to magnify or dampen rational decision-making to access business financing. The findings also affirm the Knowledge base view theory (KBV) that, financial literacy is a special strategic asset organizations can use to obtain a competitive advantage over competitors. Practically, SMEs will be encouraged to improve their financial literacy and risk attitude skills.

Kohler U., Class F., Sawert T.

Abstract A review of all research papers published in the European Sociological Review in 2016 and 2017 (N = 118) shows that only a minority of papers clearly define the parameter of interest and provide sufficient reasoning for the selected control variables of the statistical analysis. Thus, the vast majority of papers does not reach minimal standards for the selection of control variables. Consequently, a majority of papers interpret biased coefficients, or statistics without proper sociological meaning. We postulate that authors and reviewers should be more careful about control variable selection. We propose graphical causal models in the form of directed acyclic graphs as an example for a parsimonious and powerful means to that end.

Frueh L., Collins A.B., Newman R., Barnett N.P., Rich J.D., Clark M.A., Marshall B.D., Macmadu A.

Abstract Background The ongoing COVID-19 pandemic has disproportionately affected structurally vulnerable populations including people who use drugs (PWUD). Increased overdose risk behaviors among PWUD during the pandemic have been documented, with research underscoring the role of influencing factors such as isolation and job loss in these behaviors. Here, we use qualitative methods to examine the impact of the COVID-19 pandemic and pandemic-related response measures on drug use behaviors in a sample of PWUD in Rhode Island. Using a social-ecological framework, we highlight the nested, interactive levels of the pandemic’s influence on increased overdose risk behaviors. Methods From July to October 2021, semi-structured interviews were conducted with 18 PWUD who self-reported any increase in behaviors associated with overdose risk (e.g., increased use, change in drug type and/or more solitary drug use) relative to before the pandemic. Thematic analysis was conducted using a codebook with salient themes identified from interview guides and those that emerged through close reading of transcribed interviews. Guided by a social-ecological framework, themes were grouped into individual, network, institutional, and policy-level influences of the pandemic on drug use behaviors. Results Individual-level influences on increased overdose risk behaviors included self-reported anxiety and depression, isolation and loneliness, and boredom. Network-level influences included changes in local drug supply and changes in social network composition specific to housing. At the institutional level, drug use patterns were influenced by reduced access to harm reduction or treatment services. At the policy level, increased overdose risk behaviors were related to financial changes, job loss, and business closures. All participants identified factors influencing overdose risk behaviors that corresponded to several nested social-ecological levels. Conclusions Participants identified multi-level influences of the COVID-19 pandemic and pandemic-related response measures on their drug use behavior patterns and overdose risk. These findings suggest that effective harm reduction during large-scale crises, such as the COVID-19 pandemic, must address several levels of influence concurrently.

Chikhalikar A.S., Godbole E.P., Poerschke D.L.

This work develops an automated image and statistical analysis protocol to characterize and compare the effect of three deposits on the accelerated non-uniform degradation of a model alloy (FeCrAlY) at 1025 °C in dry air. Compared to the sample tested without a deposit, the Ca-containing mixed oxide deposit increased the frequency of oxide intrusions into the alloy. The CaSO4 and Ca-containing mixed sulfate deposits reacted with the thermally grown oxide (TGO) to form less-protective calcium aluminates and increased the roughness of the alloy-TGO interface. However, the mixed sulfate deposit melted and spread, increasing the uniformity of the attack.

Raimi L., Panait M., Gigauri I., Apostu S.A.

The current study examines the motivational factors, types of uncertainty, and entrepreneurship strategies of transitional entrepreneurship among ethnic minorities, immigrants, and women entrepreneurs, drawing insights from an extensive literature review. To understand the dynamics of transitional entrepreneurship, a thematic review, a qualitative research tool, was used to analyze the research problem and provide answers to the research questions. Three insightful findings emerged from the thematic review. First, six broad themes emerged as catalysts for transitional entrepreneurship among the three focused entrepreneurs, namely, the institutional environment, push factors, pull factors, ethnic resource dependence, cultural inheritance, and gender identity issues. Specific elements of each of the six themes are explicated. Moreover, two levels of uncertainty (Levels 1 and 2) confront transitional entrepreneurs depending on countries and institutional contexts. Level 1 uncertainty presents a clear future with likelihoods, possibilities, and probabilities of success, while Level 2 uncertainty presents several alternate paths and trajectories with a blurred possibility of success for these entrepreneurs. Finally, transitional entrepreneurs leverage optioned and adaptive entrepreneurship strategies in different ways to cope with the two types of uncertainty in their host countries. Given the prospects of TE, the paper provides implications on how to remove the institutional barriers facing transitional entrepreneurs for more balanced socioeconomic inclusion in host countries. It further explicates a need to leverage the motivational factors and entrepreneurship strategies for economic development. By providing a theoretical-based framework of motivations, types of uncertainty, and entrepreneurship strategies, the paper bridges the gaps in the literature and contributes to a better way of understanding TE among ethnic minorities, immigrants, and women entrepreneurs in the period of transition.

Zyphur M.J., Bonner C.V., Tay L.

The use of structural equation modeling (SEM) has grown substantially over the past 40 years within organizational research and beyond. There have been many different developments in SEM that make it increasingly useful for a variety of data types, research designs, research questions, and research contexts in the organizational sciences. To give researchers a better understanding of how and why SEM is used, our article ( a) presents a review of SEM applications within organizational research; ( b) discusses SEM best practices; and ( c) explores advanced SEM applications, including instrumental variable methods, latent variable interactions and nonlinear measurement models, multilevel SEM, cross-lagged panel models and dynamic structural equation models, and meta-analytic SEM. We conclude by discussing concerns and debates that are both methodological (i.e., cross-validation and regularization) and theoretical (i.e., understanding causal evidence) as they relate to SEM and its application in organizational research and beyond.

Seloni G., Kusrohmaniah S., Lufityanto G.

Errors are common in the entrepreneurial world, but the ability to learn from past mistakes can separate successful entrepreneurs from the rest. On the other hand, it has been demonstrated that the average population can anticipate future problems based on emotional signals elicited from past experience—a capacity known as emotion-based learning. The present research was aimed at examining emotion-based learning while also incorporating risk-taking predisposition (RTP) as an additional measurement among entrepreneurs using Iowa gambling task (IGT). Participants were instructed to pick cards from a deck, and each card either awarded or subtracted points. While performing this task, participants’ skin conductance response (SCR) was recorded to examine subtle emotional signals. The sample of entrepreneurs involved in our study showed worse IGT performances than those in the control group. This was similar to findings in a previous study (Muehlfeld et al., Entrep Theory Pract 41:533–565, 2017) that surmised that the typical behavior was simply due to exploring all opportunities that eventually had significant cost to participants. Here, we extend the explanation that the SCR measurement supported emotion-based learning, indicating that our participants were aware of the potential risks of the IGT. Furthermore, entrepreneurs’ RTP could explain the incompatibility between physiological and behavioral outcomes. Entrepreneurs seemed to ignore the bodily-emotional signals, perhaps tempted by a particular card deck’s gain/loss ratio, which eventually led to significant losses. This study illuminates the interplay between risk-taking propensity, physiological markers of emotion, and performance in a game scenario that simulates decision-making in an ambiguous environment.

Laspita S., Sitaridis I., Kitsios F., Sarri K.

Career intentions of students are extremely important and they are affected by the particular social context, such as cultures, communities, universities in which they are embedded. The exposure to entrepreneurship education may also have moderating effects on the different social antecedents of career intentions. We draw data from a large sample and use logistic regression and marginal effects to highlight the importance of the socio-cultural environment to the intention to become a founder instead of an employee in the near and distant future. We show that the effect of entrepreneurship education is not the same in every social context. While entrepreneurship research up to now has mainly focused on individual level determinants of career choices, we highlight the importance of the social environment. Policy makers should consider the characteristics of the different levels of the social environment before designing policies to reinforce the intention to become a founder.

Ali E.B., Shayanmehr S., Radmehr R., Amfo B., Awuni J.A., Gyamfi B.A., Agbozo E.

Most emerging economies and the South American Countries are no exception to the negative consequences of trade-off between economic growth and environmental sustainability decisions. This study draws strength from the United Nations Sustainable Development Goals (UN-SDGs-7, 11, 12, and 13). Therefore, this study examines the environmental nexus between economic growth, globalization, renewable, and non-renewable energy, in South America from 1995 to 2020. We deployed the pooled mean group (PMG), mean group (MG), and dynamic fixed effects (DFE). Cross-sectional dependence, panel unit root, and cointegration tests were performed. Finally, we used the Dumitrescu and Hurlin test of causality to determine the long-run association between variables. The finding indicates that while environmental pollution increases with increasing economic growth, it decreases with increasing renewable energy both in the short and long term. Whereas economic globalization positively affects environmental pollution in the long term, social globalization and the moderation effect between political globalization and renewable energy improves environmental quality in the long run. Finally, a bidirectional causality was found between economic growth and environmental pollution, with a unidirectional causality running from economic, political, and social globalization, renewable, and non-renewable energy to environmental pollution. Given these findings, we discussed potential policy measures.

Uansa-ard S., Wannamakok W.

PURPOSE: Although the COVID-19 pandemic has had a catastrophic effect on economic activities worldwide, the paradoxical phenomenon of this black swan situation may be found to facilitate entrepreneurial intentions. This study aims to investigate Thai university students’ perceptions of their entrepreneurial aspirations during the times of the COVID-19 pandemic. METHODOLOGY: Drawing upon social cognitive career theory, this research investigates the profound linkage of university students’ COVID-19 perceptions and attitudes towards situations for self-believing in the adaptation for entrepreneurship. A valid sample of 798 collected from eight provinces, eight districts, and eight cities throughout Thailand was included for further analysis using Structural Equation Modelling (SEM) and Process Macro Model 6. FINDINGS: University students’ COVID-19 pandemic perceptions influence their self-efficacy in situation adaptations and perceived desirability towards individual-level entrepreneurial intentions. Interestingly, self-efficacy and desirability towards entrepreneurship act as serial mediating factors, towards the mediated relationship between attitude towards the situation, COVID-19 perception, and university students’ entrepreneurial intentions. IMPLICATIONS: The results of this research can add to entrepreneurship literature and additional model testing has also been proposed. Besides, practitioners and researchers could collaborate with governors to cultivate entrepreneurial trajectories based on research findings. ORIGINALITY AND VALUE: Social cognitive career theory (SCCT) can rationalize an academic student’s career choice of entrepreneurship by considering their perception of the start-up processes during COVID-19. Future research can also test findings on a representative sample at the national level.

Nasar A., Akram M., Safdar M.R., Akbar M.S.

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 were found as situations provoking business decline and their manifestation, entrepreneurial actions and reactions to COVID-19 crisis, and their futuristic plans amidst COVID-19. This research highlights issues entrepreneurs face to follow protocols of lockdown, social distancing, and operational hours. The findings of this study contribute to the scholarship of entrepreneurship and areas for the empirical investigation to develop efficient ecosystems to support entrepreneurs. This study suggests government and non-government stakeholders devise strategies for entrepreneurial revival post-COVID-19. This is probably one of the first qualitative assessment of the likely effects of the COVID-19 pandemic on entrepreneurship. It also recommends interesting related research areas and suggestions on how to empower entrepreneurs to overcome it.

Schamberger T., Schuberth F., Henseler J.

Research in human development often relies on composites, that is, composed variables such as indices. Their composite nature renders these variables inaccessible to conventional factor-centric psychometric validation techniques such as confirmatory factor analysis (CFA). In the context of human development research, there is currently no appropriate technique available for assessing composites with the same degree of rigor comparable to that known from CFA. As a remedy, this article presents confirmatory composite analysis (CCA), a statistical approach suitable to assess composites. CCA is a special type of structural equation modeling that consists of model specification, model identification, model estimation, and model assessment. This article explains CCA and its steps. In addition, it illustrates CCA’s use by means of an illustrative example.

Vainauskienė V., Vaitkienė R.

The COVID-19 pandemic poses several challenges transforming the learning organization. The retention of sustainability in the context of COVID-19 pandemic uncertainty requires immediate response. Therefore, this paper addresses the following research question: how does organizational creativity contribute to managing challenges in the context of COVID-19 pandemic uncertainty as a precondition for resilience? Thus, the paper offers several contributions. First of all, the research dwells on the conceptual attributes of the learning organization: the object is identified and substantiated, the ways the learning organization’s vulnerability manifests itself through are presented; the factors creating the learning organization’s COVID-19 pandemic vulnerability are discussed; it is identified what capacities are necessary and in what learning processes they develop to reduce the learning organization’s COVID-19 pandemic vulnerability. Secondly, the paper identifies and discusses critical challenges to the learning organization caused by COVID-19 pandemic uncertainty, the ones that the organization must react to immediately to reduce its COVID-19 pandemic vulnerability: rapid social innovation cycle, expansion of organizational learning and optimisation of perceived organizational support for employee trust and commitment. Thirdly, the paper discuss how creativity is important for response.

Adepu N., Kermanshachi S., Pamidimukkala A.

Cardella G.M., Barba-Sánchez V., Meseguer-Martinez Á., Hernández-Sánchez B., Sánchez-García J.C.

AbstractThis study examines the influence of psychological variables on university students' entrepreneurial intention during the current crisis. We argue that individuals use their psychological resources to cope with adverse situations such as the COVID-19 pandemic. We therefore investigate how the basic psychological needs satisfaction, proactivity and optimism positively influence the intentions of choosing an entrepreneurial career and, on the contrary, how the impact of COVID-19 pandemic perception on the future country's economy can negatively affect the student’s career choice. Methodologically, we used structural equation modelling on a sample of 201 university students in Spain. Our findings support the idea that entrepreneurial intentions are hampered by the perception of COVID-19, but promoted by the basic psychological needs satisfaction, as a motivational factor, when driven by optimism and proactivity. Our research has important implications. From a theoretical point of view, it contributes to the little existing literature on the importance of factors that promote entrepreneurial intention in adverse conditions, demonstrating that students' psychological characteristics can support their performance and, therefore, the economic and social development of the community. From a practical perspective, the present work has important implications for educators and policymakers to introduce programs that encourage entrepreneurship in students by cultivating proactivity and optimism and by offering educational resources that help students reduce perceived risk and increase motivation towards an entrepreneurial career.

Skryl T.V., Gerasimova E.B., Chutcheva Y.V., Golovin S.V.

The goal is to create a systemic risk profile of companies during the COVID-19 crisis, which reflects their cause-and-effect relationships and risk management. The research objects are the following types of risks for companies listed in “Global-500” (Fortune) and the top 55 most competitive digital economies of the world (IMD) in 2017–2022: (1) risk of reduction in competitiveness (rank), (2) risk of reduction in revenue, and (3) risk of reduction in profit. The research methodology is based on the method of structural equation modelling (SEM), which allowed for exploring the cause-and-effect relationships between risk changes and digital risk management for companies during the COVID-19 crisis. As a result, based on the SEM model, it was proven that risks for companies during the COVID-19 crisis only slightly increased compared with that at the pre-crisis level. It was determined that companies faced large risks during the COVID-19 crisis in developed countries. It was discovered that, due to successful adaptation, risk management of companies assuaged the manifestations of the COVID-19 crisis in the economy. The key conclusion is that, under the conditions of a crisis of a non-economic nature (e.g., the COVID-19 crisis), companies independently and successfully manage their risks with the help of measures of digitalisation: corporate risk management with the limitation of state intervention is preferable. The contribution to the literature consists of the development of the concept of risks for companies by clarifying the specifics of risks and risk management of companies during the COVID-19 crisis. The theoretical significance lies in the fact that the authors’ conclusions rethought the risks for companies under the conditions of a crisis given the special context of a crisis of a non-economic nature (via the example of the COVID-19 crisis). The practical significance is that the developed novel approach to risk management of companies through digitalisation, which is based on the experience of the COVID-19 crisis, will be useful for risk management of companies under the conditions of future crises of non-economic nature caused by epidemics/pandemics and/or environmental disasters.