The impact of COVID-19 pandemic-Entrepreneurial Uncertainty and Effect on Economic Development

Abstract

This paper illustrates however chronic uncertainty caused by crisis events affects the provision of entrepreneurial sources of finance for starts –ups and tiny and medium sized enterprises (SMEs). To explore this line of argument, this paper examines crunch base period knowledge examining entrepreneurial finance investments in China throughout development COVID-19 crisis. The paper shows that these equity investments unerect dramatically within the immediate aftermath of COVID-19 virus, leading to a year on year decrease of 60% within the total volume of investment raised between quarter one in 2019 and quarter 1 in 2020. Importantly, the paper found early-stage seed investments falling the steepest, suggesting aborning starts-ups are those most heavily affected by the crisis. Overall, enterprise policy manufacturers have to be compelled to become higher attuned at watching period of time data sources to mitigate chronic entrepreneurial uncertainty via strategic policy responses.