Necessity or opportunity: A case of business venturing decision during COVID‐19 pandemic

This study measures an individual's evaluation of the situation of COVID‐19 and the result of such an evaluation on their business venturing decision. We have considered a three‐step model of exposure–evaluation–action using partial least squares (PLS)‐based structural equation modeling with a sample of 497 working‐class members and small business owners. Unlike previous researches on “economic uncertainty,” our results show that the systemic economic uncertainty during COVID‐19 inhibited business venturing. This was caused by the negative opportunity cost due to higher sustenance costs during the pandemic. We further found that “entrepreneurial intent” independently did not lead to business venturing, but the act of venturing depended on the recognition of opportunity.