Starting a Business in Sweden During the Covid-19 Crisis : A qualitative study of young adults in entrepreneurship

• Main Authors: Koppari, Ellenor, Westberg, Moa
• Format: Others
• Language: English
• Published: Umeå universitet, Företagsekonomi 2021
• Subjects: Entrepreneurship; Young adults; Sweden; Covid-19; Business Administration; Företagsekonomi
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-184900

During 2020, there were many changes in circumstances in society due to covid-19. People lost their jobs and there was an increased uncertainty (Ekonomifakta, 2020). Meanwhile, the number of start-ups has never previously been as high in Sweden (Nordevik, 2021). This study has investigated why young adults have taken the decision to start a business in 2020 during the covid-19 crisis, as well as what role covid-19 has played. We have chosen to use a qualitative approach and to capture their subjective perceptions of making the decision, but also of the process, we decided to use a phenomenological method.  The theoretical framework includes research on entrepreneurial motivation, such as the push and pull theory. The theoretical framework also includes theories that acknowledge the individual, such as The Theory of Planned Behavior (Ajzen, 1991). This study is conducted within a Swedish context and the theoretical framework also includes the context for the young adults, since we wanted to investigate what potential external factors have led them to their decision of starting a business. Theories that have been included concerning what in the external environment that might have influenced the young adults to start their businesses are role models (Hazel & Nurius, 1986) and possible self-images (Bosma et.al., 2012). The theories in the theoretical framework have been applied to the context of this study and thereby created a relevant conceptual framework that has served as inspiration for the development of the interview guide.   To answer why young adults have taken the decision to start a business in 2020, we have used semi-structured interviews. Our sample has been young adults in the ages between 18-29, who started their company between March and December 2020. Our sample consists of nine young adults, distributed in eight interviews. There is a diversity between the respondents, both in age, but also in geographical location, gender and which industries they work in.  The young adults in this study have had their own, subjective explanations for why they started businesses in 2020 during the covid-19 crisis, and the entrepreneurial motivation of independence has been a large reason why. The respondents have not been forced to start their businesses due to the uncertain circumstances covid-19 brought and the pandemic has only been part of one respondent's decision. The respondents found the timing to be suitable and connections to entrepreneurial networks have also influenced the decision. All the young adults have received support from their closest surroundings, which has positively influenced them in taking their decision. Finally, risk-tolerance has been found to be part of why young adults have started their businesses, and previous experience of entrepreneurship has also been an explanation.