Entrepreneurship during economic crisis: Success factors and paths to failure
By Carlos Devece, Marta Peris-Ortiz, C. Rueda-Armengot. 2016
258 citations recorded by the source corpus.
This paper identifies the combinations of fundamental entrepreneurial factors that drive the growth of new businesses under different economic conditions. Using data from the Global Entrepreneurship Monitor (GEM) survey, the study focuses on two moments in Spain's recent economic cycle: the 2008 economic crisis and the economic boom prior to this downturn. The study presents an application of fuzzy-set qualitative comparative analysis (fsQCA) to identify the basic entrepreneurial characteristics (opportunity recognition and innovation) and drivers of entrepreneurship (necessity vs. opportunity) that increase the likelihood of success for new businesses during these two periods in the economic cycle. Results reveal that necessity-driven entrepreneurship is ineffective during recessions and that innovation and opportunity recognition are more relevant as success factors during periods of recession than during periods of prosperity. Results also show that the entrepreneur's perception of opportunities may be misleading in strong economies.
Subfields: Management of Technology and Innovation, Sociology and Political Science
View Paper: https://www.semanticscholar.org/paper/27be5e83204d6ce9eb2edddacd9ce9d0ee41e0d6
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In Management of Technology and Innovation
In Sociology and Political Science
Citations in the corpus
- The Linear and Non-Linear Effects of Internal Control and Its Five Components on Corporate Innovation: Evidence from Chinese Firms Using the COSO Framework (2020, background): “Several studies suggest that innovation plays an important role in a firm’s success and a country’s economic development (Devece et al., 2016; Galindo & Méndez, 2014; Kirchhoff et al., 2013).”
- Social Entrepreneurial Intention and the Impact of COVID-19 Pandemic: A Structural Model (2020, background): “[55] also conducted a comparative study of new company creation in Spain between 2005 and 2007 and 2008 and 2010, observing that the number of new companies created fell from 400,000 in the first period to 300,000 in the second.”
- Hop to it! The impact of organization type on innovation response time to the COVID-19 crisis (2020, background): “Reducing innovation expenditures to protect the core business activities would thus be myopic, particularly because prior research (Devece et al., 2016) has identified innovation activity as an essential driver of success throughout a recession.”