The effects of the COVID-19 pandemic on U.S. entrepreneurship

Hean, Oudom; Chairassamee, Nattanicha

doi:10.1007/s12076-023-00327-x

Cited by 4 publications

(4 citation statements)

References 14 publications

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“…More specifically, government policies relating to taxation can play a big role in determining business creation because greater levels of tax on profits can represent a barrier to entry and a higher cost of doing business for firms (Da Rin et al 2011). Similarly, greater rates of government spending on unemployment benefits can negatively affect business creation because it may reduce the cost associated with unemployment and remove the push-factor motivation which pushes unemployed individuals to pursue entrepreneurship (Hean and Chairassamee 2023;O'Leary 2022). Finally, national efforts to attract foreign direct investment can help increase rates of business creation through positive employment effects increasing aggregate demand which functions as a pull-factor motivation for entrepreneurs (Carree and Dejardin 2020).…”

Section: Other Determinants Of Firm Birthsmentioning

confidence: 99%

Firm interrelationships: the role of firm size

O’Leary

2024

Lett Spat Resour Sci

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This paper put’s forward a working conceptualisation for how the size of firms which die influences firm interrelationships where firm deaths influence future firm births. Two conceptual arguments are developed to explain the role of firm size in influencing future firm births; the resource argument and the consumer demand argument. This relationship is also empirically tested using a multilevel model to examine the relationship between the death of differently-sized firms and future firm births in European NUTS 3 regions. Findings suggest that only the deaths of larger firms appears to increase future firm births. The resource-based argument is used to explain this finding whereas the consumer demand-based argument is used to explain why the death of smaller firms seems to reduce future firm births. The dataset used in this paper’s estimation captures a large amount of activity across 14 countries and 502 NUTS 3 regions from 2008 to 2019.

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Section: Other Determinants Of Firm Birthsmentioning

confidence: 99%

Firm interrelationships: the role of firm size

O’Leary

2024

Lett Spat Resour Sci

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“…The U.S. Census Bureau provides comprehensive monthly data on business applications beginning in 2005, and for the purposes of this study, we have aggregated these monthly figures into annualized data. Similar to Hean and Chairassamee (2023), we measure entrepreneurial activities, using different types of business applications. Specifically, we analyze total business applications, high-propensity business applications, business applications from corporations and business applications with planned wages.…”

Section: Datamentioning

confidence: 99%

Bank competition and business formation in the U.S. Midwest

Hean,

Jabas

2023

JFEP

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Purpose In the wake of rapid banking consolidations in the USA, concerns have arisen about the accessibility of capital and financial services for new businesses. With fewer and more centralized banking options, the likelihood of these entities securing financing may be compromised. This study aims to explore the repercussions of this consolidation on entrepreneurial activities in the U.S. Midwest. Design/methodology/approach To measure entrepreneurship, this study examines various business application metrics: total applications, high-propensity business applications (i.e. those with a high likelihood of evolving into businesses with payrolls), business applications from corporations (applications stemming from corporations or personal service entities) and applications with planned wages (those indicating a forthcoming payroll date). To assess the banking sector’s consolidation, this study used the deposit-based Herfindahl–Hirschman Index (HHI), a well-known measure of banking concentration. Findings This research underscores the detrimental impact of banking consolidation on various new business formations. To illustrate, a one standard deviation surge in the HHI, roughly 1253 points, correlates with a decline of approximately 16 total business applications, 7.3 high-propensity business applications, 3.72 applications originating from corporations and 3 applications indicating planned wages – all per 10,000 individuals. The findings indicate that reduced banking competition could slow down new business formations and negatively affect entrepreneurship. Originality/value This study examines various business formation statistics and use deposits at the institution level to determine banking concentration.

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“…However, the COVID-19 crisis took place because of the pandemic and has a noneconomic nature, due to which the risks for companies during this crisis might be specific. The results of recent published work on the topic of the influence of the COVID-19 pandemic and crisis on risks for companies are reflected in the work by Abdi et al (2023), Erer et al (2023), Fortunato et al (2023), Hean and Chairassamee (2023), Kanamura (2023), Loughran and McDonald (2023), and Tang et al (2023). In the existing literature (Popkova and Sergi 2021;Yelikbayev and Andronova 2022), only certain aspects of the risks for companies during the COVID-19 crisis are reflected.…”

Section: Literature Review and Gap Analysismentioning

confidence: 99%

Risks for Companies during the COVID-19 Crisis: Dataset Modelling and Management through Digitalisation

Skryl,

Gerasimova,

Chutcheva

et al. 2023

Risks

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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.

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The effects of the COVID-19 pandemic on U.S. entrepreneurship

Cited by 4 publications

References 14 publications

Firm interrelationships: the role of firm size

Firm interrelationships: the role of firm size

Bank competition and business formation in the U.S. Midwest

Risks for Companies during the COVID-19 Crisis: Dataset Modelling and Management through Digitalisation

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