Assessing the impact of climate change on entrepreneurship: short-term and long-term effects

Abstract Climate change is one of the biggest crises facing humanity today, but the existing literature lacks discussion on the impact of climate change on economic development from the perspective of entrepreneurial activities. This study investigates the impact of climate change risks on entrepren...

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Main Authors: Sujuan Han, Mei Zhou
Format: Article
Language:English
Published: Springer Nature 2025-03-01
Series:Humanities & Social Sciences Communications
Online Access:https://doi.org/10.1057/s41599-025-04763-6
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author Sujuan Han
Mei Zhou
author_facet Sujuan Han
Mei Zhou
author_sort Sujuan Han
collection DOAJ
description Abstract Climate change is one of the biggest crises facing humanity today, but the existing literature lacks discussion on the impact of climate change on economic development from the perspective of entrepreneurial activities. This study investigates the impact of climate change risks on entrepreneurship, distinguishing between short-term and long-term effects. Using data on firm dynamics, natural disasters, and financial institution presence, we find that climate-related disasters reduce firm entries and increase exits in the short term due to overreaction to immediate shocks. Long-term impacts involve increasing firm exits and decreasing firm survival rates. Areas with dense financial institutions show greater resilience, emphasizing the importance of financial infrastructure. Our findings highlight the importance of robust financial infrastructure in disaster-affected regions to support entrepreneurial resilience and economic stability.
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spelling doaj-art-dcafeef756ec46df8aeda3f4e7f893812025-08-20T02:49:32ZengSpringer NatureHumanities & Social Sciences Communications2662-99922025-03-011211810.1057/s41599-025-04763-6Assessing the impact of climate change on entrepreneurship: short-term and long-term effectsSujuan Han0Mei Zhou1Qinghai Normal UniversitySouthwestern University of Finance and EconomicsAbstract Climate change is one of the biggest crises facing humanity today, but the existing literature lacks discussion on the impact of climate change on economic development from the perspective of entrepreneurial activities. This study investigates the impact of climate change risks on entrepreneurship, distinguishing between short-term and long-term effects. Using data on firm dynamics, natural disasters, and financial institution presence, we find that climate-related disasters reduce firm entries and increase exits in the short term due to overreaction to immediate shocks. Long-term impacts involve increasing firm exits and decreasing firm survival rates. Areas with dense financial institutions show greater resilience, emphasizing the importance of financial infrastructure. Our findings highlight the importance of robust financial infrastructure in disaster-affected regions to support entrepreneurial resilience and economic stability.https://doi.org/10.1057/s41599-025-04763-6
spellingShingle Sujuan Han
Mei Zhou
Assessing the impact of climate change on entrepreneurship: short-term and long-term effects
Humanities & Social Sciences Communications
title Assessing the impact of climate change on entrepreneurship: short-term and long-term effects
title_full Assessing the impact of climate change on entrepreneurship: short-term and long-term effects
title_fullStr Assessing the impact of climate change on entrepreneurship: short-term and long-term effects
title_full_unstemmed Assessing the impact of climate change on entrepreneurship: short-term and long-term effects
title_short Assessing the impact of climate change on entrepreneurship: short-term and long-term effects
title_sort assessing the impact of climate change on entrepreneurship short term and long term effects
url https://doi.org/10.1057/s41599-025-04763-6
work_keys_str_mv AT sujuanhan assessingtheimpactofclimatechangeonentrepreneurshipshorttermandlongtermeffects
AT meizhou assessingtheimpactofclimatechangeonentrepreneurshipshorttermandlongtermeffects