Deciphering the Key Factors of Entrepreneurial Intention
In a global and regional context, economic growth and labor market efficiency are significantly influenced by the extent of entrepreneurship. Beyond the positive impact of creating new businesses, entrepreneurship identifies new markets and facilitates the development of new skills, abilities, and a proper division of labor. Delving into the history of the European Union, we discover the fundamental pillar on which this elite structure stands – the concept of solidarity among its member states. The architecture of the European Union, crafted after World War II, faced numerous challenges, but mutual support between nations ensured its existence to this day.
Efforts are being made to avoid situations where people face insecurity regarding access to essential goods and services. This is not only an imperative measure to ensure citizens have the means to support their families but also to provide businesses with a stable economic framework for their continued activities. The effects of the current medical crisis are well-known.
Determinants of Entrepreneurial Intention
Hence, a study titled “The Impact of the COVID-19 Pandemic on Entrepreneurial Intentions: An Integrated Structural Model Approach” was conducted by Ioana Sorina Andreica Mihuț together with a group of researchers from the Faculty of Economics and Business Administration (FSEGA) at Babeș-Bolyai University (UBB) in Cluj-Napoca and recently published in the scientific journal “Eastern European Economics” by Taylor & Francis. This study was conducted in a context where global economic prospects have dramatically shifted in recent years, and both academic researchers and policymakers worldwide are focusing on identifying the most suitable mechanisms for stabilizing markets.
Restrictions imposed in many countries during the critical moments of the pandemic had adverse effects on the functioning of the economy, especially on the business environment, forcing entrepreneurs to reconsider their strategies to ensure business continuity. However, discussions about the importance of entrepreneurship in the current macroeconomic framework are insufficient without a proper examination of the factors driving entrepreneurial intentions, particularly in uncertain contexts marked by economic instability.
To date, only a limited number of studies have captured the effects of the healthcare crisis caused by the COVID-19 pandemic on entrepreneurial intentions in different economies. Additionally, there have been numerous debates regarding the theoretical framework for conducting such research, as there is no consensus on standardized models for identifying the factors influencing individuals, especially young people, to choose a career in entrepreneurship over other available options.
The primary objective of this research is to offer a detailed, multi-dimensional analysis of the key determinants of entrepreneurial intentions in a global context disrupted by the COVID-19 pandemic. It is essential to find answers, as entrepreneurship is seen as a precondition for economic recovery. The uniqueness of this scientific work lies in its fusion of theoretical and empirical models to better understand the key determinants of entrepreneurial intentions and evaluate the impact of a major crisis, such as the recent health crisis, on entrepreneurial intentions in Romania.
The results of this study reinforce the crucial role that factors such as attitude, desirability, feasibility, perceived self-efficacy, and collective efficacy have on entrepreneurial intentions. The study also highlights significant institutional implications. Recommendations stemming from this research target both the academic and governmental sectors.
In the academic realm, it’s crucial to clearly communicate the benefits of entrepreneurship, foster an entrepreneurial mindset among students, identify individuals with entrepreneurial skills, and support them in starting new businesses. From a managerial perspective, this translates into designing and implementing staff training programs to prepare educators and emphasize the importance of incorporating these aspects into educational discourse and practices. From a governmental perspective, the implications underscore the role of national governments in formulating robust and effective measures to support existing businesses, especially small and medium-sized enterprises, ensuring their survival through legislative and fiscal support, especially during times of market uncertainty, as seen during the recent COVID-19 pandemic.
For more details on this study, we invite you to access the following link: Analyzing the Determinants of Entrepreneurial Intention. The authors can be contacted regarding this research on ResearchGate.
