Risk Perception and Entrepreneurial Intention Under Emergency (COVID-19): An Empirical Study in China

The COVID-19 epidemic has greatly affected the global economy, businesses, and people’s lives. Small and medium-sized enterprises have faced shutdowns, bankruptcy, and layoffs, among other issues. As an important measure for boosting employment and economic development, starting up businesses warrants attention from both government and society. This study, therefore, examines the risk perception and entrepreneurial intention of potential entrepreneurs in the context of the COVID-19 epidemic. A sample of 387 potential entrepreneurs is surveyed. Two main risks perception are identified: uncertainty and entrepreneurial capacity risk. Propensity score matching (PSM) shows that individual risk perception is negatively related to entrepreneurial intention in the emergency context. Furthermore, the two dimensions of risk perception have different influences on entrepreneurial intention.