Analysis of entrepreneurs’ motivations and role models for growth expectations in the time of coronavirus

Abstract

The change in life and professional conditions in 2020 has impacted the growth expectations of new firms. Based on a sample of more than 20,000 people coming from the Spanish Global Entrepreneurship Monitor (GEM) for 2019 and 2020, we analyze the effect of entrepreneurs’ motivations and social role models on the growth expectations of new firms using a binomial logit model. The results show that, as a consequence of the institutional conditions caused by the COVID-19 pandemic, entrepreneurs only take into consideration the economic projections of the new firm in order to take the risk of hiring employees in the early stage of the firm’s creation. However, experienced entrepreneurs involved in the consolidating stage of the entrepreneurial process have more ambitious motivations, and take advantage of their knowledge derived from peer role models in order to face the new opportunities arising during the pandemic. The effect of motivations and role models on firms’ growth also differ between men and women.