Entrepreneurial intentions in times of economic recession: the dual role of environment

Although intentions are considered the most frequently used predictor of entrepreneurial action, little is known about how such intentions are formed under adverse environmental conditions. Given that the disruption of economic activities has become the new normal for business, understanding the influence of a severely resource-poor context on the intention to initiate a new venture is important. Addressing the above concern, the present study explores the impact of the economic recession on entrepreneurial intentions. Drawing upon the theory of planned behaviour (TPB) and applying the structural equation modelling design to a sample of 618 university graduates in Greece, we show that recession plays a dual role: it negatively affects subjective norms and self-efficacy while also moderating the attitudes-intention relationship. Implications for theory and practice are discussed.