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.jpg): Failed to open stream: No such file or directory in C:\Inetpub\vhosts\kidney.de\httpdocs\pget.php on line 117 ä-/-ä 2020 ; 14
(ä): e00174
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Entrepreneurial uncertainty during the Covid-19 crisis: Mapping the temporal
dynamics of entrepreneurial finance
#MMPMIDC7283071
Brown R
; Rocha A
ä-/-ä 2020[Nov]; 14
(ä): e00174
PMIDC7283071
show ga
This paper illustrates how chronic uncertainty caused by crisis events affects
the availability of entrepreneurial sources of finance for start-ups and small
and medium-sized enterprises (SMEs). To explore this line of argument, this paper
examines Crunchbase real-time data examining entrepreneurial finance investments
in China during unfolding Covid-19 crisis. The paper shows that these equity
investments slumped dramatically in the immediate aftermath of the Covid-19
virus, resulting in a year on year decrease of 60% in the total volume of
investment raised between quarter 1 in 2019 and quarter 1 in 2020. Importantly,
the paper found early-stage seed investments falling the steepest, suggesting
nascent start-ups are those most heavily affected by the crisis. While the global
financial crisis heavily hit debt markets, the relational nature of equity
investments may mean entrepreneurial finance is even more susceptible to major
upheaval caused by the Covid-19 crisis. Overall, enterprise policy makers need to
become better attuned at monitoring real-time data sources to mitigate chronic
entrepreneurial uncertainty via strategic policy responses.