Executive Summary Study „ Who is brave enough to start a new business during the Covid-19 pandemic?“
The article contributes to the discussion about the effects of the Covid-19 pandemic. In the study, the authors ask whether the entrepreneurs starting businesses during the Covid-19 crisis were different from those becoming entrepreneurs before the pandemic.
The empirical part is devoted to business entities from the United Kingdom, which were established on the basis of obtaining a preferential loan from the so-called start-up loan (SUL) scheme between the years 2012-2021. The probit regression model with dependent variable coded one if the start occurred after February 2020 and zero between 2012 and February 2020, was estimated.
The study’s findings show that both groups of entrepreneurs differ in many facets. The new Covid-19 entrepreneurs are older, more likely to have a graduate-level education and are significantly more likely to make this transition from full-time waged employment or inactivity. Furthermore, they are more likely to set up in manufacturing industries at the business level than their pre-Covid-19 counterparts who favoured service sectors. Finally, their initial lending to support the start-up is much higher.
This study provides value for the policymakers responsible for the administration of the SUL scheme, and it also contributes to the body of knowledge on the effects of the global Covid-19 pandemic.
Target Audience/Stakeholders: Public entrepreneurship and SME policymakers, entrepreneurs
Citation: Cowling, M. & Dvouletý, O. (2023). Who is brave enough to start a new business during the Covid-19 pandemic? Baltic Journal of Management, DOI: https://doi.org/10.1108/BJM-11-2022-0414