Challenges during crises, an opportunity to build trust

Sammanfattning: Problem - Trust has the potential to reduce risk and uncertainty that is inherent within entrepreneurial activities. However, few entrepreneurship studies have examined the role of trust during the venture creation process. Additionally, researchers have called for more studies exploring trusting entrepreneurial behaviour and processes across different contexts. Aim - This study aimed to add to the current body of research by examining trust development in crisis situations. Specifically, we focused on identifying the challenges entrepreneurs face resulting from the COVID-19 crisis and how this impacts trust development in relational embedded ties. Methods – Nine in depth, semi-structured interviews were conducted with entrepreneurs who were affected by the COVID-19 crisis. Results – The empirical data demonstrated that the most common changes were; a shift in market demand, cancellations and delays, payment difficulties and increased uncertainty. During these challenges, the personal goodwill trust in relational embedded ties was either enhanced or violated, depending on the actions of the tie. Social trust was only relied upon if there was no form of personal trust that facilitated the relationship. Implications - Crisis situations, such as the COVID-19 creates challenges that could be an opportunity for entrepreneurs to build upon the strongest type of trust; personal goodwill trust.