Impediments of COVID-19 pandemic and entrepreneurship development in an emerging economy’s SMEs

Purpose The COVID-19 pandemic severely affected business and entrepreneurship activities worldwide. This study aims to investigate the factors influencing entrepreneurship development in an emerging economy’s small- and medium-sized enterprises (SMEs). Design/methodology/approach The researchers applied a quantitative approach to this study, which used cross-sectional data as the basis of its findings. The researchers used a questionnaire to obtain responses from general managers in the Kingdom of Saudi Arabia’s (KSA) manufacturing industries. Findings Using structural equation modeling, the findings of the study suggest that, on the one hand, the fear of the COVID-19 pandemic and perceptions about its arrival had a negative impact on entrepreneurship development. On the other hand, stress and anxiety had no significant effect on entrepreneurship development. Practical implications This study’s findings guide policymakers, KSA’s government agents and industry owners to adopt preventive measures to limit fear, stress and anxiety associated with the expected complications of the COVID-19 pandemic. The findings also offer better solutions to controlling severe disturbances to the economic and social entrepreneurship of vulnerable startup companies, various SMEs and large-scale companies. Originality/value This study’s results reveal the severe complications of the COVID-19 pandemic and its remarkably devastating impact on entrepreneurship development.