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Financing entrepreneurship in times of crisis: Exploring the impact of COVID-19 on the market for entrepreneurial finance in the United Kingdom
This commentary explores the manner in which the current COVID-19 crisis is affecting key sources of entrepreneurial finance in the United Kingdom. We posit that the unique relational nature of entrepreneurial finance may make it highly susceptible to such a shock owing to the need for face-to-face...
Autores principales: | , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
SAGE Publications
2020
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Materias: | |
Acceso en línea: | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7342936/ http://dx.doi.org/10.1177/0266242620937464 |
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author | Brown, Ross Rocha, Augusto Cowling, Marc |
author_facet | Brown, Ross Rocha, Augusto Cowling, Marc |
author_sort | Brown, Ross |
collection | PubMed |
description | This commentary explores the manner in which the current COVID-19 crisis is affecting key sources of entrepreneurial finance in the United Kingdom. We posit that the unique relational nature of entrepreneurial finance may make it highly susceptible to such a shock owing to the need for face-to-face interaction between investors and entrepreneurs. The article explores this conjecture by scrutinising a real-time data source of equity investments. Our findings suggest that the volume of new equity transactions in the United Kingdom has declined markedly since the outbreak of the COVID-19 pandemic. It appears that seed finance is the main type of entrepreneurial finance most acutely affected by the crisis, which typically goes to the most nascent entrepreneurial start-ups facing the greatest obstacles obtaining finance. Policy makers can utilise these real-time data sources to help inform their strategic policy interventions to assist the firms most affected by crisis events. |
format | Online Article Text |
id | pubmed-7342936 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2020 |
publisher | SAGE Publications |
record_format | MEDLINE/PubMed |
spelling | pubmed-73429362020-07-08 Financing entrepreneurship in times of crisis: Exploring the impact of COVID-19 on the market for entrepreneurial finance in the United Kingdom Brown, Ross Rocha, Augusto Cowling, Marc International Small Business Journal: Researching Entrepreneurship COVID-19 Commentaries This commentary explores the manner in which the current COVID-19 crisis is affecting key sources of entrepreneurial finance in the United Kingdom. We posit that the unique relational nature of entrepreneurial finance may make it highly susceptible to such a shock owing to the need for face-to-face interaction between investors and entrepreneurs. The article explores this conjecture by scrutinising a real-time data source of equity investments. Our findings suggest that the volume of new equity transactions in the United Kingdom has declined markedly since the outbreak of the COVID-19 pandemic. It appears that seed finance is the main type of entrepreneurial finance most acutely affected by the crisis, which typically goes to the most nascent entrepreneurial start-ups facing the greatest obstacles obtaining finance. Policy makers can utilise these real-time data sources to help inform their strategic policy interventions to assist the firms most affected by crisis events. SAGE Publications 2020-08 /pmc/articles/PMC7342936/ http://dx.doi.org/10.1177/0266242620937464 Text en © The Author(s) 2020 https://creativecommons.org/licenses/by/4.0/This article is distributed under the terms of the Creative Commons Attribution 4.0 License (https://creativecommons.org/licenses/by/4.0/) which permits any use, reproduction and distribution of the work without further permission provided the original work is attributed as specified on the SAGE and Open Access page (https://us.sagepub.com/en-us/nam/open-access-at-sage). |
spellingShingle | COVID-19 Commentaries Brown, Ross Rocha, Augusto Cowling, Marc Financing entrepreneurship in times of crisis: Exploring the impact of COVID-19 on the market for entrepreneurial finance in the United Kingdom |
title | Financing entrepreneurship in times of crisis: Exploring
the impact of COVID-19 on the market for entrepreneurial finance in the United
Kingdom |
title_full | Financing entrepreneurship in times of crisis: Exploring
the impact of COVID-19 on the market for entrepreneurial finance in the United
Kingdom |
title_fullStr | Financing entrepreneurship in times of crisis: Exploring
the impact of COVID-19 on the market for entrepreneurial finance in the United
Kingdom |
title_full_unstemmed | Financing entrepreneurship in times of crisis: Exploring
the impact of COVID-19 on the market for entrepreneurial finance in the United
Kingdom |
title_short | Financing entrepreneurship in times of crisis: Exploring
the impact of COVID-19 on the market for entrepreneurial finance in the United
Kingdom |
title_sort | financing entrepreneurship in times of crisis: exploring
the impact of covid-19 on the market for entrepreneurial finance in the united
kingdom |
topic | COVID-19 Commentaries |
url | https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7342936/ http://dx.doi.org/10.1177/0266242620937464 |
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