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Necessity or opportunity: A case of business venturing decision during COVID‐19 pandemic

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  • Ashish Vazirani
  • Titas Bhattacharjee

Abstract

This study measures an individual's evaluation of the situation of COVID‐19 and the result of such an evaluation on their business venturing decision. We have considered a three‐step model of exposure–evaluation–action using partial least squares (PLS)‐based structural equation modeling with a sample of 497 working‐class members and small business owners. Unlike previous researches on “economic uncertainty,” our results show that the systemic economic uncertainty during COVID‐19 inhibited business venturing. This was caused by the negative opportunity cost due to higher sustenance costs during the pandemic. We further found that “entrepreneurial intent” independently did not lead to business venturing, but the act of venturing depended on the recognition of opportunity.

Suggested Citation

  • Ashish Vazirani & Titas Bhattacharjee, 2022. "Necessity or opportunity: A case of business venturing decision during COVID‐19 pandemic," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(3), pages 768-778, April.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:3:p:768-778
    DOI: 10.1002/mde.3417
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    1. Lee Yoowoo & Kim Jayoung & Mah Sunghyuck & Karr Angela, 2024. "Entrepreneurship in Times of Crisis: A Comprehensive Review with Future Directions," Entrepreneurship Research Journal, De Gruyter, vol. 14(3), pages 905-950.

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