COVID-19 and entrepreneurship entry and exit: Opportunity amidst adversity

Vladimir Otrachshenko, Olga Popova, Milena Nikolova, Elena Tyurina

Research output: Contribution to journalArticleAcademicpeer-review

19 Citations (Scopus)
152 Downloads (Pure)

Abstract

We theoretically and empirically examine how acquiring new skills and increased financial worries influenced entrepreneurship entry and exit intentions during the pandemic. To that end, we analyze primary individual-level survey data we collected in the aftermath of the COVID-19's first wave in Russia, which has had one of the highest COVID-19 infection rates globally. Our results show that acquiring new skills during the pandemic helped owners keep their existing businesses and encouraged start-ups in sectors other than information technology (IT). For IT start-ups, having previous experience matters more than new skills. While the pandemic-driven financial worries are associated with business closure intentions, they also inspire new business start-ups, highlighting the pandemic's creative destruction power. Furthermore, preferences for formal employment and remote work also matter for entrepreneurial intentions. Our findings enhance the understanding of entrepreneurship formation and closure in a time of adversity and suggest that implementing entrepreneurship training and upskilling policies during recurring waves of the COVID-19 pandemic can be an important policy tool for innovative small business development.
Original languageEnglish
Article number102093
Number of pages14
JournalTechnology in Society
Volume71
DOIs
Publication statusPublished - 22-Aug-2022

Keywords

  • Business entry
  • Information technology (IT)
  • Business closure
  • COVID-19
  • Entrepreneurship intentions
  • Self-employment
  • Russia

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