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The Destructive Impact of Business-Related Terrorism on Start-Up Rates

In: Destructive Entrepreneurship in Emerging Markets

Author

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  • Abdullah Ijaz

    (Business, Operations, and Strategy (BOS), Greenwich Business School)

Abstract

This chapter presents a comprehensive analysis of the effects of business-related terrorism on entrepreneurial rates, offering a novel perspective that extends beyond the widely studied impact of terrorism on economic growth. Recognising the potential for terrorism to adversely affect rates of new business creation, this research rigorously examines the correlation between business-related terrorism and entrepreneurial activities on a global scale. Utilising the data derived from the Global Terrorism Database (GTD), the study scrutinises the impact of business-related terrorist incidents on business formation across 120 countries spanning from 2006 to 2018. The findings reveal a compelling negative correlation between business-related terrorism attacks and the rate of new business creation, highlighting the exception of developed countries, which appears statistically insignificant in this context. The research further dissects the sample countries into various categories based on their development status, revealing that fragile nations suffer most significantly in terms of business formation due to terrorist incidents. This exploration serves to illuminate the crucial, yet often overlooked, destructive influence of terrorism on entrepreneurial activities and business density, particularly focusing on business-related terror attacks, thereby offering valuable insights for policymakers, economists, and business leaders globally.

Suggested Citation

  • Abdullah Ijaz, 2025. "The Destructive Impact of Business-Related Terrorism on Start-Up Rates," Springer Books, in: Amir Emami & Esin Yoruk & Andrew Johnston & Andrea Caputo & Paul Jones (ed.), Destructive Entrepreneurship in Emerging Markets, chapter 0, pages 203-224, Springer.
    • Handle: RePEc:spr:sprchp:978-981-96-0112-7_12
    DOI: 10.1007/978-981-96-0112-7_12
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