Entrepreneurship and innovation in a context of crisis

Abstract

There is no consensus in the literature on the effects of an economic crisis on entrepreneurial activity. Some authors consider that situations of weak growth, recession, or stagnation may favor discovery of opportunities and innovation; whereas others claim that economic slowdowns have a negative effect on entrepreneurial attitude, reducing discovery of opportunities and investment in innovation. This chapter, by relating entrepreneurs with their experience, specific business management skills and knowledge, their innovation practices, attitude, and perception of opportunities, postulates that entrepreneurs with these characteristics and practices, embodying entrepreneurship in the fullest sense, will maintain an entrepreneurial attitude in situations of economic crisis. The study is based on Global Entrepreneurship Monitor data which show a positive, significant relationship between this type of entrepreneur and entrepreneurial performance during the economic crisis.