How do resilience and self-efficacy relate to entrepreneurial intentions in countries with varying degrees of fragility? A six-country study

Abstract

Conflict, poverty and weak institutions create hardships for people, societies and economies on a global basis. We investigate macro-societal state fragility and stability. Within this context, and from a microfoundations perspective, we analyse individual-level constructs and particularly, the importance of entrepreneurial self-efficacy and individual resilience in forming the intent to start a business. With primary data from Afghanistan, Iraq, Peru, Tajikistan, the United States and Finland, we find that under stable conditions, a belief in one’s entrepreneurial ability – entrepreneurial self-efficacy – is critical. Conversely, under adverse conditions, as evident in fragile states, the ability to grow from adversity – individual resilience – is the more meaningful resource.