The effect of percieved stress (COVID-19) and uncertainty intolerance on the entrepreneurial decision-making process: causation and effectuation

Entrepreneurs are of vital importance for long-term wealth and the competitiveness of the economy. However, the outbreak of COVID-19 has not only generated uncertainty and stress, but also forced governments to enact anti-infection measures in order to prevent the virus from spreading. These factors influence entrepreneurs at a personal level and their ability to conduct business. This research aimed to identify the extent to which uncertainty intolerance has a mediating/moderating effect on the relationship between perceived stress (COVID-19) and the entrepreneurial decision-making process; causation/effectuation. On the basis of quantitative analysis of the survey data of 69 Dutch entrepreneurs can be concluded that uncertainty intolerance has a positive moderation effect on the relationship between perceived stress (COVID-19) and causation, but not on effectuation. In addition, it can be concluded that uncertainty intolerance has a small negative mediation effect on the relationship between perceived stress (COVID-19) and effectuation, but that there is no mediation effect on causation. The results therefore indicate that perceived stress and uncertainty intolerance are important factors to consider when studying the entrepreneurial decision-making process.