Entrepreneurship by necessity in times of pandemic: Entrepreneurial motivation and the regulatory focus in explaining the intention to undertake

Abstract

Objective: This study aims to analyze the effect of the need for security on the intention to undertake when mediated by entrepreneurial motivation with the regulatory focus on college students. Methodology/approach: Using analysis of variance and linear regression tests, we conducted data analysis on both direct relationships and mediations with a sample consisting of 217 university students. Main results: We identified that the need for safety positively influences entrepreneurial motivation. We also recognized that this result occurs through the double sequential mediation of entrepreneurial motivation and regulatory focus. Thus, students with a promotional regulatory focus were more willing to undertake than those whose regulatory focus is on prevention. Theoretical/methodological contributions: Higgins and Pinelli (2020) indicated that entrepreneurship rarely uses regulatory focus theory despite it being adequate. Furthermore, the economic crisis generated by the COVID-19 pandemic may be a factor that influences the motivation to undertake, as it is an extrinsic motivation driven by the need for security. Relevance/originality: We identified that the need for security can trigger the motivation to undertake, making individuals present a state of promotional self-regulation. Social/management contributions: Based on the results, it can be stated that entrepreneurial education should address different types of communication in order to encourage future entrepreneurs. Clarification of the gain is commonly applied in classrooms, but no-loss communication should also be adopted.