Entrepreneurs’ post-pandemic career choices: government relief and situated optimism

Purpose This study aims to clarify the role gender plays in shaping an entrepreneur's choice about whether or not to restart a business. It further proposes that the situational optimism created by the government's Covid-19 relief packages had a different impact on male and female entrepreneurs' re-entry decisions. The study aims to expand the understanding of an entrepreneur's choice between finding a paid position or returning to entrepreneurship, explaining how government policies to increase entrepreneurial activity may impact male and female entrepreneurs differently. Design/methodology/approach The study is based on a sample of small business owners in the US who lost money during the Covid-19 pandemic. A total of 118 responses were collected via Qualtrics about 6 months after the start of the pandemic. Findings The study provides empirical insights into how gender moderates the impact of the situational optimism brought about by the government's Covid-19 relief packages. It suggests that, while both male and female entrepreneurs experienced higher optimism after receiving the relief packages, these packages only increased male entrepreneurs' likelihood of re-entering self-employment. After receiving the relief package, female entrepreneurs were more likely to seek paid employment. Research limitations/implications This study might lack generalizability because it is contextualized for the Covid-19 pandemic. However, findings may still offer insights into how entrepreneurs cope with failure due to an exogenous crisis. Future research could further explore how situational optimism influences men and women differently in their post-crisis entrepreneurship career choices. Practical implications The paper has implications for the development of government policies designed to boost entrepreneurial activities and the need to consider gender differences when designing these policies. Social implications Originality/value This paper examines the effectiveness of government relief packages in stimulating entrepreneurial activity. It further identifies a need to study the role of gender in entrepreneurs' decision-making of re-entering self-employment.