DOI

https://doi.org/10.25772/BBK4-WP15

Author ORCID Identifier

https://orcid.org/0009-0007-7356-1836

Defense Date

2025

Document Type

Dissertation

Degree Name

Doctor of Philosophy

Department

Public Policy & Administration

First Advisor

Dr. Elsie Harper-Anderson

Second Advisor

Dr. Xueming Chen

Third Advisor

Dr. Leslie S. Stratton

Fourth Advisor

Dr. Wenli Yan

Abstract

The COVID-19 pandemic caused almost one-fifth of the small and medium-sized enterprises (SMEs) to fail during the height of the pandemic and had a particularly large impact on small firms. Schumpeter’s Creative Destruction theory predicts that a low level of entrepreneurship, particularly innovation and productivity, correlates with higher firm failure rates. Utilizing data from the World Bank Enterprise Survey, I test this prediction by taking firm-level data from 23 countries. The study explores how capacity gaps in entrepreneurship and productivity relative to competitors contribute to higher failure rates among small firms during crises. One unique contribution of this work is the creation of an entrepreneurship index based on various entrepreneurial activities identified by the OECD. Another unique contribution is the use of relative entrepreneurship and productivity measures that are industry specific. Findings suggest that small firms with below-average entrepreneurship and productivity levels face increased failure risks, whereas excessively high productivity levels do not confer advantages. The findings and policy implications presented in the final chapter offer guidance for policymakers, business owners, and business incubators in navigating crises and adopting appropriate strategies.

Rights

© The Author Rajendra Pandit

Is Part Of

VCU University Archives

Is Part Of

VCU Theses and Dissertations

Date of Submission

2-10-2025

Available for download on Saturday, February 09, 2030

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