Extreme Events, Entrepreneurial Start-Ups, and Innovation: Theoretical Conjectures

Thomas Gries and Wim Naudé

Economics of Disasters and Climate Change, 2021, vol. 5, issue 3, No 2, 329-353

Abstract: Abstract In light of the COVID-19 pandemic, we scrutinize what has been established in the literature on whether entrepreneurship can cause and resolve extreme events, the immediate and long-run impacts of extreme events on entrepreneurship, and whether extreme events can positively impact (some) entrepreneurship and innovation. Based on this, we utilize a partial equilibrium model to provide several conjectures on the impact of COVID-19 on entrepreneurship, and to derive policy recommendations for recovery. We illustrate that while entrepreneurship recovery will benefit from measures such as direct subsidies for start-ups, firms’ revenue losses, and loan liabilities, it will also benefit from aggregate demand-side support and income redistribution measures, as well as from measures that facilitate the innovation-response to the Keynesian supply-shock caused by the pandemic, such as access to online retail and well-functioning global transportation and logistics.

Keywords: Entrepreneurship; Innovation; COVID-19; Extreme events; Development (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s41885-021-00089-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
Working Paper: Extreme Events, Entrepreneurial Start-Ups, and Innovation: Theoretical Conjectures (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:ediscc:v:5:y:2021:i:3:d:10.1007_s41885-021-00089-0

Ordering information: This journal article can be ordered from
https://www.springer ... mental/journal/41885

DOI: 10.1007/s41885-021-00089-0

Access Statistics for this article

Economics of Disasters and Climate Change is currently edited by Ilan Noy and Shunsuke Managi

More articles in Economics of Disasters and Climate Change from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().