Turbulence and adaptations to the coronavirus crisis: resources, coping and effects on stress and wellbeing of entrepreneurs

Abstract

The COVID-19 crisis has substantial consequences for entrepreneurs. Specifically, our model assumes that the task environment turbulence – changing employment rates within industries and geographic locations – forces entrepreneurs to adapt and change their work organization which, in turn, increases their stress and reduces their wellbeing. In building on the conservation of resource theory, we posit that resources will have a positive effect on stress and wellbeing, whereas coping strategies will have either positive or negative effects depending on the type of strategy used. We tested our model on a sample of 496 entrepreneurs. Our results demonstrate the strong effect of environmental turbulence on changes in work organization and, ultimately, the stress and wellbeing of entrepreneurs. Avoidance-oriented and task-oriented coping strategies are both important in reducing stress and improving wellbeing, while emotion-oriented coping has a negative impact on stress. Having access to relational resources reduces stress and improves wellbeing, and access to organizational resources reduces stress and positively moderates the negative effect of stress on wellbeing.

The Impact of Psychological Stress on Personal Income, Physical Health and Entrepreneurial Intentions among Entrepreneurs

“…In the context of Hypothesis 1 (H1), the findings indicate a discernible negative impact of stress on entrepreneurial intention, corroborated by the extensive body of literature within the field. This alignment with prior research is supported by studies conducted by esteemed scholars such as [3][4][5][24][25][26]. The manifestation of these adverse effects is multifaceted, encompassing physiological and psychological dimensions.…”

“…[3] provide empirical evidence of stress-related health and wealth trade-offs for entrepreneurs, indicating the costs associated with high-stress levels: the perceived entrepreneurial stress and its link to well-being among entrepreneurs [4]. Similarly, [26] shows that stress levels during crises can significantly impact entrepreneurs' well-being, further substantiating the negative relationship between stress and entrepreneurship.…”