Abstract Book of the 7th International Conference on New Trends in Management, Business and Economics
Year: 2025
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The Impact of Geopolitical Risk on Nascent Entrepreneurship
Sorin Gabriel Anton, Anca Elena Afloarei Nucu
ABSTRACT:
The geopolitical risk (GPR) plays an important role in shaping the entrepreneurial landscape, particularly for the nascent firms, which are more sensitive to geopolitical threats – such as political instability, trade disruptions or regulatory unpredictability. The purpose of the paper is to analyze the influence of the GPR on the emergence and development of new entrepreneurial initiatives. Based on the panel estimation models, the findings suggest that heightened GPR exerts a negative influence on the entrepreneurial entry, due to higher operational costs, restricted access to entrepreneurial finance and diminished institutional trust. For new firms, which lack the buffer of established networks and financial reserves, such disruptions can be existential. Investors tend to avoid unpredictable environments and nascent entrepreneurship, already perceived as high risk, faces mores difficulties in attracting startup financing, which may delay business launches. The research aims to offer insights for policymakers, investors and entrepreneurs who operates in the high risk sensitive environments.
Keywords: entrepreneurship, geopolitical risk, new firm formation, panel data, startup financing