Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/279215 
Year of Publication: 
2023
Series/Report no.: 
CESifo Working Paper No. 10466
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Entrepreneurs are often situated in extreme environments characterized by violent conflict. Yet, war is largely a blind spot in entrepreneurship scholarship. As a first step to closing this gap, we offer a well-identified synthetic control study of entrepreneurial dynamics in the Russo-Ukrainian war. Relative to the synthetic counterfactual, Ukraine's number of self-employed dropped by 20%, and the number of Ukrainian SMEs temporarily dropped by 14% but recovered within five years of the start of the conflict. In contrast, Russia had lost more than 1.4 million SMEs (42%) five years into the conflict. The disappearance of entrepreneurs is driven by both fewer new SMEs created and more existing SME closures. To pave the way for systematic scholarship on "war and entrepreneurship," our study proposes a conceptual framework integrating conflict into the theory of entrepreneurial choice and suggests numerous avenues for future research.
Subjects: 
entrepreneurship
war
Russia-Ukraine conflict
JEL: 
D74
L26
N44
O17
Document Type: 
Working Paper
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