Abstract
During the COVID-19 pandemic, 41.3% of companies stated they closed temporarily due to the pandemic. In the United Kingdom, 32.5% of entrepreneurs reported they were still able to work during the pandemic, compared to entrepreneurs in Norway (58.5%), Bosnia and Herzegovina (81.6%), North America (55%), and France (55.9%). In a global study for the World Economic Forum, a variety of firms were surveyed, from entrepreneur startups to music festivals, manufacturing companies, and automotive enterprises. Seventy percent of startups stated they had to terminate their full-time employees since the beginning of the COVID-19 pandemic. Only 40% of new enterprises stated they have enough revenue to last for three months of operations. Resilience, financial inclusion, education, and strategic partnerships are needed during crises to protect entrepreneurial ecosystems, especially if firms operate in economies that are emerging, possess institutional voids, institutional forces, or slow economic growth issues.
TopIntroduction
Crises in economies, not just institutional voids, possess the ability to cause hardships to both businesses and markets, including creating additional institutional voids. For example, Bartik et al. (2020) conducted a quantitative study on the North American small business ecosystem within the Alignable Business Network of 4.6 million companies. Bartik et al. (2020) reported out of the entire sample, 7500 businesses responded to taking the resilience, per se, survey, where 41.3% of companies stated they closed temporarily due to the COVID-19 pandemic. From the same sample, 1.8% reported they closed permanently due to the pandemic, but approximately 55.5% advised they were still able to operate; found a way to operate (Bartik et al., 2020). Comparably, in the United Kingdom, 32.5% of entrepreneurs reported they were still able to work during the pandemic, compared to entrepreneurs in Norway (58.5%), Bosnia and Herzegovina (81.6%), and France (55.9%) (Stephan et al., 2021).
On the other hand, distinct from Stephan et al. (2021) and Bartik et al. (2020), Cuyper et al. (2020) conducted a global study for the World Economic Forum, surveying a variety of industries and firms, from entrepreneur’s startups to music festivals, manufacturing companies, and automotive enterprises. Cuyper et al. (2020) reported over 70% of startups stated they had to terminate their full-time employees, since the beginning of the COVID-19 pandemic. Likewise, only 40% of new enterprises only have enough revenue to last for less than three months of operations. With consultation clients in nearly 50 nations, working with investment forums, various world leaders, president’s of nations, and business owners, Cuyper et al.’s (2020) claims are closely related to what may entrepreneurs stated, although Bartik et al. (2020) and Stephan et al.'s (2021) claims seem appropriate too.
Nevertheless, for many years small businesses have been claimed to be the driving force behind economies existence and stability. Gargi (2019) postulated entrepreneurship regards contributing to economies by employing people and is connected to new technologies and innovations that have the potential to create additional employment for markets. The new innovations and technologies also possess the ability to be profitable (Gargi, 2019). Somewhat similar to Gargi (2019), Fotache and Bucsa (2020) stated The European Commission defined entrepreneurship as the formalization of ideas and opportunities, and then transforming those ideas and opportunities into something that will bring value to people. The value developed can be within the context of social, cultural, or financial value (Fotache & Bucsa, 2020).
Key Terms in this Chapter
Economic Empowerment: Economic empowerment is the ownership of finances, investments, property, and gaining education ( Dalal, 2011 ). Economic empowerment directly impacts economic development and vice versa ( Rao et al., 2014 ). Within the context of economic empowerment of women , economic empowerment involves being in a position to make decisions ( Mohyuddin et al., 2012 ). When women are economically empowered, they participate in decision-making ( Mohyuddin et al., 2012 ; Ballon, 2018 ). Similarly, when women are empowered, they make leadership, income, time, and resources decisions (Aziz et al., 2021 AU68: The in-text citation "Aziz et al., 2021" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. ).
Empowerment: Empowerment can be socially, economically, or even ecologically structured. Generally, empowerment encompasses empowerment areas, benefits, and actions . Empowerment areas frequently studied and reported on were (1) sustaining income and productivity, including through knowledge transfer and technological tools, (2) developing business skills and industry specific know-how and skills, (3) supporting business creation and entrepreneurial innovation, (4) developing collaborative partnerships for collaborative solutions, and (5) favoring gender equality (Civera et al., 2018 AU69: The in-text citation "Civera et al., 2018" is not in the reference list. Please correct the citation, add the reference to the list, or delete the citation. ).
Financial Inclusion: When certain groups of disadvantaged are included or regarded to obtain credit and gain access to opening a bank account or receiving other finances services for personal, professional, or commercial use.
Entrepreneurship: The use various innovative resources to identify and then pursue opportunities ( Mair, 2005 ). Also, entrepreneurship regards employing others, contributing to societies, and is connected to technology and new innovations that eventually produce additional employment and profit opportunities for economies ( Gargi, 2019 ).
Sustainable Development: Sustainable development is where economic development, social development, and environmental development, and governance interact, work cohesively ( Tiba & Frikha, 2020 ). An institutional pillar can also be added ( Tiba & Frikha, 2020 ).
Women’s Empowerment: Women’s empowerment is connected to economic empowerment. Women being capable of achieving things, free to collaborate on tasks with others at will, possessing resources, and having control in their personal, financial, social, and economical lives for independence, which increases self-esteem and self-confidence. Economic empowerment is also the ownership of property, investments, and finances ( Simbar et al., 2017 ), and gaining education ( Dalal, 2011 ).
Economic Development: To enhance or grow an economy, traditionally with utilizing various resources, wealth, job creation, prosperity, and/or finances (e.g., investments) to improve the overall well-being or quality of life of people in the society.