Entrepreneurship in times of an economic crisis : An explanatory research on the impact of the economic crisis on entrepreneurial activity

Abstract: Representatives of entrepreneurship always appear as one of the most vulnerable economic agents during a global crisis, especially if this crisis is of an unpredictable external nature. The purpose of this degree project is to determine the impact of an economic crisis on the development of forced and opportunity-based entrepreneurship, as well as how the context of an economic downturn affects creativity, which is a key compound of the entrepreneurial process. In order to accomplish this task, the researchers apply iterative induction strategy, resorting mainly to quantitative analysis method and ensuring that the study is credible, reliable and follows the core principles of business ethics. Within the course of the following degree project, the researchers conduct interviews with business representatives from various fields and countries, as well as analyze secondary statistics available for external crises of 20th and 21st centuries. The outcome of the research suggests that in times of a recession entrepreneurial activity based on intrinsic motivation and the use of market opportunities is suppressed due to such obstacles as unfavorable credit and uncertain economic environment, while generally compelled entrepreneurship usually develops, since it becomes one of the most effective methods to combat rising unemployment. The study also proves that government support is an important impetus for the recovery of SMEs during the post-crisis period. Last, but not least, is that the results of the interviewing and statistical data confirm that the state of an economic downturn has a positive effect on the development of creativity.