Entrepreneurial intentions in the context of a natural disaster

Purpose: This research aims to explore the moderating effect of a natural disaster on the well-studied relationship between entrepreneurship-oriented beliefs (behavioral, normative, and control beliefs) and entrepreneurial intentions. Design/methodology/approach: This study relies on data from the Global Entrepreneurship Monitor before and after the earthquake that took place in Chile on February 27, 2010. The study was performed by applying a multilevel hierarchical logit regression over a sample of 14,724 individuals from the six more affected regions. Findings: The results indicate that a natural disasters shape the relationship between entrepreneurial intentions and all its three motivational antecedents, however in opposing directions. The results also suggest that a natural disaster strengthens the relationship between entrepreneurial attitudes and entrepreneurial intentions; nevertheless the effect of subjective norms becomes less relevant in shaping entrepreneurial intentions. Furthermore, the authors found that the earthquake had a positive effect on the relationship between perceived behavioral control and entrepreneurial intentions. Originality/value: This study advances the emerging stream of research on the micro-level consequences of exogenous shocks and how they shape individual functioning. A key implication for policymakers wishing to facilitate the recovery phase after a natural disaster is that it is important to focus on fostering entrepreneurship by developing individuals' personal attitude and perceived control over the firm-creation behavior, rather than relying on the perceived social pressure to become an entrepreneur.