Lessons from Global Financial Crisis: Human Capital and Business Activities among Nascent Women Entrepreneurs in China

Abstract

This study aims to investigate the effect of the crisis on entrepreneurial activities and how it can be relieved. Specifically, we explore how the positive effects of the human capital (self-confidence, opportunity alertness, and risk willingness) on startup activities are changed after the global financial crisis. Additionally, we explore how knowing an entrepreneur boosts up these relationships. We applied data from the Global Entrepreneurship Monitor (GEM) about prospective women entrepreneurs in China in 2006–2007 (precrisis time) and 2009–2010 (postcrisis time). Results show a sharp drop in effect size of self-confidence and opportunity recognition upon women's entrepreneurial actions; however, the global financial crisis nullified the effect of fear of failure on potential women entrepreneurs' business activities. Furthermore, knowing an entrepreneur has no significant moderating effect. Theoretical and practical implications and directions for future research are discussed.

Citation

Ashourizadeh, S. and Zhang, C. (2021), "Lessons from Global Financial Crisis: Human Capital and Business Activities among Nascent Women Entrepreneurs in China", Rezaei, S., Li, J., Ashourizadeh, S., Ramadani, V. and Gërguri-Rashiti, S. (Ed.) The Emerald Handbook of Women and Entrepreneurship in Developing Economies, Emerald Publishing Limited, Leeds, pp. 355-370. https://doi.org/10.1108/978-1-80071-326-020211018