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

Authors : Himani , Abhinav Anand, Amit Barwal, Shaina Kalsi, Surya Prakash Gautam

DOI : 10.18231/j.ijpns.2020.017

Volume : 3

Issue : 3

Year : 2020

Page No : 77-83

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.

Keywords: Equity investments, Crisis, COVID19, Realtime data, Entrepreneurial finance, Necessity based entrepreneurship.


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