engleski

Coping With Crisis - Critical Influence of Entrepreneurs

There is not a single country in the world that has not experienced crisis. However, some countries return to the path of recovery rather quickly while other countries struggle with it for much longer. Numerous factors can affect in what way and for how long will a country cope with crisis, such as fiscal policy, monetary policy, openness to external markets, level of economic development, level of indebtedness, political system in place etc. This paper proposes that one of the key factors might be the influence of entrepreneurs. While during turbulent times “rational” economic agents will disinvest (for purposes of risk avoidance) in this way feeding the crisis even more, entrepreneurs will (because of their propensity to adapt to changing environment and accept relatively higher risks) readily start new business ventures. In this regard, entrepreneurs alter business environment by boosting up investments, employment and growth, helping the economy to break up the vicious circle of crisis before the others.

entrepreneurship; international business; crisis; uncertainty; risk

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