Opportunity Identification in the Financial Crisis: A 60-Country Study of Multi-level Drivers

This paper explores entrepreneurs’ reactions to the global economic crises, examining both firm and country characteristics associated with entrepreneurs’ ability to perceive additional entrepreneurial opportunities in a crisis. Harmonized data collected in 2009-10 reveals extensive national differences in entrepreneurial attitudes, activity, and aspirations during the economic crisis. We then analyze responses from over 12,000 entrepreneurs in over 60 countries. We find that new firm owner/managers are more likely to perceive opportunities if their firms have high levels of internationalization and innovation. Furthermore, we find that entrepreneurs are more likely to see additional business opportunities in response to the recent crisis when their national environments are characterized by high levels of positive perceptions of start-up opportunities. Our findings suggest critical implications for policy, practice, and future research.