Much Ado About Nothing? The Surprising Persistence of Nascent Entrepreneurs Through Macroeconomic Crisis

27 Pages Posted: 6 Jul 2016

See all articles by Per Davidsson

Per Davidsson

Queensland University of Technology - Brisbane Graduate School of Business

Scott Gordon

University of Adelaide

Date Written: July 2016

Abstract

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 light on the mechanisms behind aggregate effects of crises on the number and type of start‐ups in an economy, and can guide future research on the effect of crises on nascent entrepreneurship.

Suggested Citation

Davidsson, Per and Gordon, Scott, Much Ado About Nothing? The Surprising Persistence of Nascent Entrepreneurs Through Macroeconomic Crisis (July 2016). Entrepreneurship Theory and Practice, Vol. 40, Issue 4, pp. 915-941, 2016. Available at SSRN: https://ssrn.com/abstract=2804819 or http://dx.doi.org/10.1111/etap.12152

Per Davidsson (Contact Author)

Queensland University of Technology - Brisbane Graduate School of Business ( email )

Brisbane
Australia
+61 7 3864 2051 (Phone)
+61 7 3864 1299 (Fax)

HOME PAGE: http://www.qut.edu.au/ph_server_query.do

Scott Gordon

University of Adelaide ( email )

10 Pulteney St
ADELAIDE, South Australia 5005
Australia

HOME PAGE: http://bit.ly/srguoa

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