COMPARATIVE ANALYSIS OF THE REASONS FOR THE ENTREPRENEURS TO TERMINATE THEIR ACTIVITIES IN 2020

Abstract

One of the relevant problems of the modern entrepreneurship development is studying the reasons that force people to leave businessespreviously created by them. In 2020, the main feature of the phenomenon under consideration was the significant impact of the COVID-19 pandemic consequences on the entrepreneurs’ decisions to terminate their activities; therefore, along with the traditional reasons, there was a need to assess the COVID-19 pandemic consequences for entrepreneurship (for different countries). The purpose of the study is to assess the current level of the entrepreneurs going out of their businesses in national economies in 2020. The results of a survey of the economically active population in 39 countries during the work on the project “Entrepreneurship Global Monitoring” (Great Britain) were the initial data. At the same time, the former entrepreneurs’ opinions about the reasons for them to go out of their businesses were considered. The article provides an assessment of five indicators that characterize the level of terminating the entrepreneurial activity due to positive and negative reasons. In the course of the study, it has been proved that slightly less than 5% of the total economically active population have stopped their business activities for negative reasons, almost 1.8% have gone out of the previously created businesses due to the COVID-19 pandemic consequences, and only 0.7% – for positive reasons. The work carried out has made it possible to conclude that the values of each of the five indicators had significant differences across countries; the countries with maximum and minimum indicators values have been identified. Since the data describing the entrepreneurs going out of their businesses have been considered, there were limitations in 39 countries due to the lack of information for the rest of the countries. Further research

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About the Author

Iuliia S. Pinkovetskaia – PhD in Economics, Docent; Associate Professor, Ulyanovsk State University, Ulyanovsk, Russia. E-mail: judy54@yandex.ru. SPIN РИНЦ 5784-7881. ORCID 0000-0002-8224-9031

For citation

Pinkovetskaia Iu.S. Comparative Analysis of the Reasons for the Entrepreneurs to Terminate Their Activities in 2020 // BENEFICIUM. 2021. Vol. 3(40). Pp. 61-68. (In Russ.). DOI: 10.34680/BENEFICIUM.2021.3(40).61-68