The COVID-19 Pandemic and Entrepreneurial Dynamics in China

Jiaqi Liu, Mingzhi Hu and Weijun Li

Emerging Markets Finance and Trade, 2025, vol. 61, issue 8, 2263-2279

Abstract: Leveraging a quasi-natural experimental framework that designates Hubei province as the treatment group and other provinces as the control group, this study utilizes a difference-in-differences method to analyze the pandemic’s causal effects on entrepreneurship in China. Using data from the Chinese General Social Survey and the China Statistical Yearbook, the study demonstrates an increase in opportunity entrepreneurship alongside a decline in necessity-driven entrepreneurship attributed to the pandemic. Moreover, the findings suggest an overall negative influence of the pandemic on entrepreneurship.

Date: 2025
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DOI: 10.1080/1540496X.2024.2447471

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