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Don’t mention the war: The effect of war threat on entrepreneurial activity in the Second Industrial Revolution of Belgium

Year: 2026

Type: article

Abstract: We examine the impact of war tensions on entrepreneurship in Belgium during the Second Industrial Revolution (1885-1913), focusing on how geopolitical uncertainty influenced the firm creation and capital raised. Our analyses reveal significant declines in both as threats escalated. Utilizing Verdickt's (2020) war threat measure, we show that rising risk aversion suppressed entrepreneurial activity while also controlling for other sources of uncertainty. The results challenge the effectuation theory, demonstrating that perceived opportunities during conflicts were overshadowed by caution.

Source: Business History

DOI: 10.1080/00076791.2025.2597760

Authors: Marc Deloof, Leentje Moortgat, Gertjan Verdickt

Institutions: University of Antwerp, Antwerp Management School, Ghent University, University of Auckland

Language: English

Topic: Historical Economic and Social Studies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W7123781010

FWCI:

Cites: 51

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