Small Business Creation and Entrepreneurship during Crisis: Insights from the Experiences of New Start-Ups in the Philippines during the COVID-19 Pandemic

41 Pages Posted: 21 Dec 2022

See all articles by Jamil Paolo Francisco

Jamil Paolo Francisco

Asian Institute of Management

Regina Yvette Romero

Asian Institute of Management Policy Center

John Paul Flaminiano

Asian Institute of Management Policy Center

Date Written: December 6, 2022

Abstract

Using data from in-depth interviews with owner-managers of small firms in the Philippines, we studied the entrepreneurial process experienced by nascent entrepreneurs in starting new businesses during the pandemic. We examined the effects of the developing pandemic crisis on both the nascent entrepreneur and the nascent enterprise. We found that most entrepreneurs were driven by the necessity to find alternative sources of income during the pandemic. Two common features identified among pandemic startup entrepreneurs were the ability to recognize new market opportunities quickly and the use of bricolage to begin the entrepreneurial process despite resource constraints. We also found that online social capital built mainly on social media platforms played an important role in the process as mobility restrictions hampered traditional offline social networks. Lack of trust and awareness of government support programs contributed to very low access among respondents.

Keywords: small business formation, crisis entrepreneurship, bricolage, COVID-19

JEL Classification: M20, M21, I00, I18

Suggested Citation

Francisco, Jamil Paolo and Romero, Regina Yvette and Flaminiano, John Paul, Small Business Creation and Entrepreneurship during Crisis: Insights from the Experiences of New Start-Ups in the Philippines during the COVID-19 Pandemic (December 6, 2022). Available at SSRN: https://ssrn.com/abstract=4294647 or http://dx.doi.org/10.2139/ssrn.4294647

Jamil Paolo Francisco (Contact Author)

Asian Institute of Management ( email )

123 Paseo de Roxas
Makati City, Metro Manila
Philippines

Regina Yvette Romero

Asian Institute of Management Policy Center ( email )

123 Paseo de Roxas
Eugenio Lopez Foundation Bldg.
Makati City, 1260
Philippines

John Paul Flaminiano

Asian Institute of Management Policy Center ( email )

123 Paseo de Roxas
Makati City, Metro Manila
Philippines

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