Entrepreneurship in the context of permanent crisis: the role of community support

Technological performance stands as a crucial aspect of entrepreneurial competitiveness, yet its determinants remain elusive, particularly during periods of instability and crisis, as research predominantly focuses on stable contexts (Audretsch et al. 2024; Thurik et al. 2013).‏ While a substantial body of literature suggests that macro-level disruptions generally hinder entrepreneurship (Belitski et al. 2022; Doern et al. 2019; Eggers 2020; Sharma et al. 2023, 2024), the relationship with technological performance is more nuanced (Khurana et al. 2022; Lin et al. 2006). Crises may unveil latent opportunities that enhance business technological capabilities (Audretsch et al. 2022b; Zouaghi et al. 2018). The entrepreneurship literature conceptualizes exogenous and endogenous factors as direct influences on technological performance, firmly rooted in the resource-based view (Barney 1991, 2002). Subsequently, external resource mobilization, such as through opportunity exploitation (Doern et al. 2019; Eggers 2020) and ecosystem support (Audretsch et al. 2014; Thorgren and Williams 2020; Volkmann et al. 2021), facilitates the transformation of resources into competitive technologies. However, contextual factors, such as crisis conditions, significantly impact the development of technological performance (e.g., Tojeiro-Rivero and Moreno 2019; Xu et al. 2021). As external resources are depleted amidst ongoing crises, entrepreneurial firms are compelled to rely more heavily on internal capabilities to sustain and enhance their technological performance. This issue underscores the importance of endogenous factors, particularly entrepreneurs' perseverance in crises, where psychological capital (PsyCap) plays a vital role (Fernández-Olmos and Ramírez-Alesón, 2017).

In the context of persistent crises, the entrepreneurial landscape is profoundly transformed, challenging established notions of opportunity exploitation and its implications for technological performance. The foundational work by Shane and Venkataraman (2000) underscores the centrality of opportunities in entrepreneurship research, a theme further elaborated by Devece et al. (2016), who highlight their pivotal role during adversity. Opportunities, conceptualized as the identification and pursuit of profitable external resources (Eckhardt and Shane 2003), are traditionally viewed as critical drivers of entrepreneurial success. However, the advent of polycrisis conditions—characterized by sustained instability—complicates the dynamics between opportunity exploitation and technological performance. The enduring nature of these crises, along with their diverse challenges, introduces significant variations in the effectiveness of conventional strategies for exploiting opportunities (Eggers 2020; Klein and Todesco 2021). In the technological sector, where resources are rapidly depleted, the challenge of seizing opportunities is exacerbated. Within this context, two divergent perspectives emerge. On one hand, some scholars argue that the efficacy of opportunity exploitation in enhancing technological performance may wane during severe crises (Osiyevskyy, 2020). This assertion is supported by findings that entrepreneurs' inclination to seize opportunities declines amidst perceptions of diminished control over resources, waning stakeholder support, and reduced access to funding (Kaufmann and Reuveni 2020; Kim et al. 2023), prompting some to adopt a cautious'wait-and-see' approach until stability resumes (Colombo et al. 2016). Conversely, another perspective contends that as external resources become scarce in prolonged adversity, the impact of opportunities hinges increasingly on entrepreneurs' abilities to leverage them effectively (Eggers 2020). This view posits that proficient entrepreneurs can utilize existing opportunities under duress to enhance technological performance (Fayena et al. 2020) and to address emergent needs by developing innovative technologies (Kuckertz et al. 2020; Kuckertz and Brändle 2022).

Given the scarcity of research in contexts marked by polycrisis and the identified inconsistencies, it is crucial to examine the complexities associated with opportunity exploitation’s role in technological performance within this'new normal.' As we approach a critical juncture in entrepreneurship research, it is imperative to reassess our existing paradigms and cultivate a nuanced understanding of how entrepreneurs can prosper amidst ongoing instability. Therefore, we propose the following hypothesis:

The complex interplay between ecosystem support and technological performance is garnering significant attention from scholars (Song 2023; Spigel and Vinodrai 2021). The ecosystem, comprising various actors, fosters a reciprocal exchange of knowledge, resources, and services with entrepreneurial ventures (Audretsch et al. 2014; Volkmann et al. 2021), via formal (Kuckertz et al. 2020; Thorgren and Williams 2020) and informal (Kon et al. 2015; Swed and Butler 2015) avenues. It plays a pivotal role by catalyzing the initiation of tech ventures (Cukier and Kon 2018; Drori and Wright 2018) and facilitating access to resources crucial for enhancing technological performance (Cohen et al. 2019; Falik et al. 2016; Fraiberg 2017).

However, the robustness of ecosystem support during crises hinges on the crisis conditions, with external resource depletion potentially hindering stakeholders' ability to support entrepreneurial businesses (Doern et al. 2019; Muñoz et al. 2020), thereby impeding technological performance development during crises.

Traditionally, entrepreneurs have relied on the ecosystem during times of crisis, anticipating the recovery of resources and sustained support once the crisis dissipates. However, as the polycrisis persists without respite for stability, this dependence prompts a critical reevaluation of these intricate relationships. Consequently, we propose the following hypothesis:

The advent of an era marked by enduring adversity has catalyzed the investigation of the PsyCap construct during crisis periods (Grözinger et al. 2022). Comprising self-efficacy, optimism, hope, and resilience (Doern et al. 2019; Luthans et al. 2007), PsyCap equips individuals with the fortitude to counteract disruptions by fostering trust in their capabilities, mental resilience, and self-regulation, ultimately enabling high performance amid adversity (Hmieleski et al. 2015; Luthans et al. 2015). PsyCap plays a pivotal role in directly enhancing technological performance, either through a direct sense of control or indirectly as a mediator (Ardelean 2021; Ziyae et al. 2015), by catalyzing external factors. This is evident in its capacity to amplify individual drive, perseverance, opportunity exploitation, and the inclination to seek ecosystem support, rooted in entrepreneurs' confidence in their ability to cultivate technological capabilities (Baluku et al. 2016; Chhatwani et al. 2022; Welter and Scrimpshire 2021). However, PsyCap may also hinder technological performance by eliciting cognitive biases, such as devaluing negative feedback or overconfidence, leading to the adoption of high-risk projects (Amore et al. 2021; Zhang and Cueto 2017). This risk is heightened for inherently complex and risky technological endeavors. Studies of Israeli tech-entrepreneurs illustrate a strong reliance on their skills (Shoham et al. 2006) and high levels of resilience during hardships like war (Palmieri et al. 2008), embodying a "winning" approach (Senor and Singer 2009). This mindset has been echoed in enhanced technological achievements during crises, but also warrants careful consideration of PsyCap's potential biases and limitations (Grözinger et al. 2022).

The distinction between a polycrisis and sporadic crises punctuated by stability in shaping PsyCap, particularly the expected inability to replenish exhausted endogenous capabilities as the crisis prolongs, necessitates reassessing its impact on technological performance. Navigating the intricate dynamics of PsyCap's influence on technological performance within an enduring polycrisis context is imperative. However, a gap remains in understanding the nuanced relationships between these drivers during crises, warranting a fresh perspective. This leads to the following hypothesis:

In an era dominated by technological advancements, nurturing a sense of community connectedness emerges as a critical imperative for driving social change (Ben-Tzur et al. 2021). Moreover, fostering a sense of belonging becomes indispensable for entrepreneurs, providing them with essential support to navigate complexities and effectively integrate technological innovations. Thus, comprehending the intricate interplay between community belonging, entrepreneurial enablement, and technological performance necessitates thorough investigation to unveil invaluable insights into how the social fabric of communities can spur innovation and competitive advantage, even amidst daunting challenges. Sense of belonging, depicted as an intrinsic affective bond, embodies an emotional experience interwoven with cultural and social interactions, personal narratives, and the very essence of communal life (Hidalgo and Hernandez 2001). It transcends mere pragmatism, serving as an anchor for entrepreneurs within their communities and providing vital social support amid adversities. During crises, a robust sense of belonging acts as a powerful catalyst for bolstering business performance (Bacq et al. 2022; Wall and Bellamy 2019). It empowers entrepreneurs with emotional and material sustenance, fostering the confidence to seek assistance when facing challenges and serving as a shield against uncertainty (Churchill et al. 2021; Klyver et al. 2018; Marciano et al. 2020; Thorgren and Williams 2020). Crucially, within communities impacted by crises, a sense of belonging actively evolves through shared experiences of adversity. This collective experience strengthens the fabric of the community and enhances its resilience (Parkinson et al. 2017; Smith 2018; Thorgren and Williams 2020; Welter et al. 2019; Williams et al. 2017). Entrepreneurs benefit from this reinforced community structure, gaining access to trusted networks from which they can draw support and valuable information (Williams et al. 2017; Williams and Shepherd 2021). This dynamic interplay between individual and collective resilience establishes a robust foundation for entrepreneurs to navigate uncertainties, fostering a climate where innovation and cooperation thrive. Such a framework is essential for sustaining competitiveness and for driving societal progress, proving indispensable in times of turmoil. Furthermore, as the sense of belonging within the community strengthens, entrepreneurs are more inclined to trust and utilize networks, support, and emotional backing from their community. Additionally, a community that is deeply bonded and loyal to its locale and inhabitants will actively engage in post-crisis recovery efforts and promote the well-being of its members. Consequently, community members are more willing to share, promote, assist, and engage in activities that can elevate business technological performance, recognizing that enhanced technological performance among businesses in the community improves the community's odds of recovery and competitiveness. Despite the significance of this relationship, there remains a paucity of research, underscoring the need to integrate social change into forecasting technology in the new normal. Therefore, we hypothesize:

Israel's trajectory from rural kibbutzim to a leading entrepreneurial and technological hub, dubbed the "Startup Nation," exemplifies resilience in adversity. Despite persistent crises, Israel harnessed community capital, mobilized resources, and elicited emotional vigor (Cohen et al. 2019; Falik et al. 2016; Fraiberg 2017), transforming challenges into opportunities for entrepreneurship and technological advancement (e.g., Cukier and Kon 2018; Drori and Wright 2018). This nation serves as a model for exploring how ventures leverage technology during intersections of crises, entrepreneurship, and innovation (Kon et al. 2015; Swed and Butler 2015). Unraveling Israel's ability to propel entrepreneurship and technological performance amid adversity offers insights into navigating polycrisis environments through an entrepreneurial spirit.

An intricate and thorough investigation is necessary when exploring under-researched phenomena like polycrisis conditions (Lawrence et al. 2022; Zeitlin et al. 2019). This landscape is both novel yet increasingly pervasive, relevant to numerous countries and regions—a reality that exists but remains inadequately understood. While polycrisis conditions are globally critical, replicating variables and relationships of technological performance that depict stability would be misguided. Instead, new research models tailored to polycrisis conditions must be forged. Additionally, incorporating under-explored factors in entrepreneurship research, such as the sense of belonging to the community, demands ascertaining the validity and reliability of such concepts by deciphering their attributed meanings. To address these challenges, a mixed-methods design is employed. This methodology initially unravels how entrepreneurs perceive, sense, and articulate a polycrisis context, deciphering the drivers they attribute to business performance and management. This ensures that under-explored concepts are genuinely relevant to entrepreneurs in a polycrisis, avoiding the researchers' enforcement of variables solely based on inclusion in the research model. In-depth interviews are primarily conducted and analyzed using natural language processes (NLP⁸) techniques to glean discussed topics, associated sentiments, and general interpretations of the polycrisis context. Sentiment analysis is crucial to our research as it transforms subjective interview insights into quantifiable data, capturing the emotional and attitudinal dynamics of entrepreneurs under polycrisis. Because polycrisis is a new concept in research, sentiment analysis can reveal how entrepreneurs truly perceive it, challenging the default assumption that it is inherently negative. Emotional factors like community support and PsyCap are difficult to extract through traditional methods, which typically focus solely on content. By incorporating sentiment analysis, we uncover deeper layers of meaning, revealing whether these elements are seen as positive or negative influences. Without this approach, relying solely on traditional qualitative methods risks missing critical emotional nuances, leading to biased interpretations that overlook the deeper emotional dynamics shaping entrepreneurs' responses to crisis. The subsequent quantitative investigation delves into the relationships between drivers that enhance technological performance during crises, informed by the most frequent extracted topics. Multilayered designs offer richer results and insights unavailable through single-research designs (Eliakis et al. 2020; Hannigan et al. 2019; Kariv et al. 2024; Molina-Azorin et al. 2017).

Between May and August 2022, the interviewers conducted 30 unstructured Zoom interviews, each lasting between 45 and 90 min, depending on how much the interviewees were willing to share. The interviews were carried out by the co-authors, recorded and transcribed for analysis. All interviews were conducted in English. In the first part, the interviewers explicitly asked the participants to share how they managed their businesses in response to specific crisis events. To ensure clarity, the interviewers listed the crises that impacted their businesses—namely, the COVID-19 pandemic, political instability in Israel, and the May 2021 military operation.⁹ The interviewers encouraged the interviewees to cover a wide range of business dimensions, including personal challenges, team management, and the opportunities that arose during these crises. After a short break of 5 min, the interviewers shifted focus, asking participants to describe their daily business management experiences unrelated to the crises. Again, the interviewers emphasized that the interviewees should reflect on various aspects of their businesses and leadership, encouraging a broad discussion. Throughout the process, the interviewers maintained a conversational tone, occasionally asking for clarifications but deliberately avoiding any leading questions to allow for organic responses. The transcriptions of these interviews culminated in a dataset comprising 1525 sentences. In alignment with the emergent tendency to integrate NLP methodologies within the realm of social sciences (De la Vega Hernández et al. 2023; Dwivedi et al. 2023; Jackson et al. 2022; Lévesque et al. 2022), our methodological approach adhered to an inductive framework, guided by Gioia et al.'s (2013) delineation of key procedural steps, which are expounded upon below, ensuring the rigor and credibility of our qualitative data.

To analyze H1, we drew on the interviews, aiming to depict the sentiments attributed by entrepreneurs to the key topics, e.g., PsyCap, sense of belonging to the community, opportunity exploitation, and'crisis management' during periods of crises compared to stability. Figure 1 illustrates the distribution of positivity within each of these key topics under stability and polycrisis conditions. The analysis reveals an overall decline in positivity when transitioning from stability to polycrisis conditions, except in crisis management, where the proportion of positive sentences increases from 19 to 25%. Entrepreneurs express greater positivity when discussing experiences related to the utilization of technology as a crisis management strategy under polycrisis conditions compared to stability. The category associated with the sense of belonging to the community maintains the highest level of positivity in both contexts, with a slight decrease from 80 to 78% during polycrisis times. This underscores a consistent positive sentiment toward the sense of belonging despite crisis contexts.

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Using a difference-in-differences equation we can quantify the variation in positivity rates among sentences related to each of the variables (treatment group) in comparison to the ambiguous group (control group), in the shift from regular conditions to polycrisis conditions (pre and post treatment).¹²

Estimating the change in positive sentiment in the transition from regular times to polycrisis times, the equation is as follows¹³ (Table 1):

Table 1 reveals a significant positive impact in the shift from stability to a polycrisis only in the category of crisis management, reinforcing the descriptive results that entrepreneurs are more prone to use technological-related strategies during crises vis-à-vis stability to manage their startups. Both sense of belonging to the community and PsyCap emerge as significant during a polycrisis, but the interaction emerged insignificant, suggesting that positivity regarding these constructs do not change significantly in the transition from stability to crises.

A test of robustness to our results has been employed by analyzing all sentiment changes for all included treatment groups and the interaction constructs represent the change in the positivity sentiment for each variable while shifting from stability to a polycrisis. Given that the cumulative sum of coefficients equals 0 for each outcome, we concisely encapsulate these results in Table 2

Table 2 showcases a significant surge in positivity, coupled with a decline in negativity and neutrality, of sentiments associated with crisis management as the transition unfolds from stability to a polycrisis. This concomitant shift bolsters the robustness of our empirical findings, accentuating entrepreneurs' reliance on technology-driven strategies to navigate their ventures through perpetual crises. Moreover, the observed increase in positivity of sense of belonging, despite its insignificance, alongside the contrasting decrease in positivity PsyCap and opportunity exploitation during the transition to a polycrisis, suggests the latent, albeit pivotal, role of sense of belonging in guiding startups through hardship. This latent aspect warrants further exploration through our quantitative research design.

Our analyses confirmed H1. Additionally, the insights from our qualitative approach play a crucial role in validating our research model, as participants spontaneously discussed topics such as PsyCap, sense of belonging, opportunities, and crisis management linked with technology during the interviews, without explicit questioning. Furthermore, the findings underscore the relevance of these variables in the context of a polycrisis. Thus, we believe that this analysis enables the extraction of variables relevant to a polycrisis, instead of merely replicating research models and variables from stability, as dictated by existing literature.

Israeli founders (n = 4000) were contacted individually through e-mails and online messaging with an invitation to be involved in this research project. In collecting our data, we used several sources to triangulate the information, thereby ensuring that this sample approximates as closely as possible the whole population of active Israeli tech founders. The rigor of the data generation was of prime importance in this project, we therefore gathered the responses from founders who represent the Israeli population with respect to regions, gender and education. This was made possible by the researchers’ collaboration with salient stakeholders in the Israeli ecosystem: the Start-up Nation Policy Institute (SNPI),¹⁴ which includes an official database according to business focus and verticals; Startuphub.ai¹⁵; and five vibrant organizations in Israel that offer professional and social services for entrepreneurs. Only responses that met the following conditions were included: founders that initiated the business and are actively managing their business to date, the business is active, and at least 50% of its operations are permanently in Israel. We therefore built a unique dataset that focuses on Israeli tech founders, aimed at pursuing their business performance under multiple crises (Brecher and Wilkenfeld 2022). The final dataset consisted of 489 founders. The sample characteristics are shown in Table 3.

The questionnaire was specifically developed for this study and included 50 multiple-choice questions. We established technical procedures that enforced obtaining consent to take part in the survey, as well as the inability to proceed once questions went unanswered, hence avoiding missing values.

Our research breaks new ground by introducing the concept of polycrisis as a critical contextual dimension in entrepreneurship studies. Unlike previous research that primarily focuses on institutional, national, regional, and sectoral dimensions of crises (e.g., Welter et al. 2019), or singular crisis events, this study examines entrepreneurship within a context of permanent, overlapping crises. This aligns with the emerging concept of polycrisis conditions (Lawrence et al. 2022; Tooze 2022). By doing so, we shed light on how entrepreneurs understand, make sense of, and respond to this new normal of persistent adversity, extending the work of Kim et al. (2023) and Shepherd and Williams (2022) on individual interpretations of crisis contexts. Our findings challenge the prevailing negative views of crisis in entrepreneurship literature (Churchill et al. 2021; Xu et al. 2021) by revealing that crises can evoke positive sentiments among entrepreneurs. This insight represents a significant shift in understanding how the polycrisis context influences entrepreneurial mindset, with crises being perceived as potential opportunities rather than solely as threats. This aligns with the concept of "crisis-driven opportunities" (Doern et al. 2019; Eggers 2020) and extends the work of Zouaghi et al. (2018) on how crises can enhance business technological capabilities. Our work contributes to the ongoing dialogue on the evolution of entrepreneurship in the face of the 4th IR, as discussed by Puumalainen et al. (2023) and Krammer (2022), and offers new perspectives on how entrepreneurs can navigate and thrive in an era of continuous technological disruption and global challenges.

Our findings demonstrate the strength of endogenous factors in activating exogenous factors to enhance technological performance in a polycrisis context. This finding contrasts with the predominant influence of exogenous effects on technological performance in stable environments (Barney and Arikan 2005; Wernerfelt 1984). The interplay between psychological capital (PsyCap) and sense of belonging in determining startup potential competitiveness amidst continual adversity represents a significant advancement in understanding the dynamics of the globally pervasive crisis-driven new normal (WEF 2024¹⁸). We introduce a novel conceptualization of how entrepreneurs leverage their sense of belonging to navigate resource scarcity during polycrisis. This extends the concept of bricolage (Baker and Nelson 2005) and builds on the work of Andersén (2011) on resource synergy. Our findings also contribute to the ongoing discourse on the role of technological advancements in business resilience, as highlighted by Bianchi et al. (2017) and Valdez-Juárez and Castillo-Vergara (2021).

Our study advocates for the adaptation and evolution of established frameworks such as the resource-based view (RBV) and bricolage in response to the emerging polycrisis context. By integrating both endogenous and exogenous resources, our conceptual framework departs from the conventional emphasis on exogenous factors alone (e.g., Doern et al. 2019; Eggers 2020; Kariv et al. 2022). We extend the RBV by demonstrating how the sense of belonging to the community acts as a crucial activator of resources, particularly in crisis contexts. This aligns with the work of Hidalgo and Hernández (2001) on place attachment and extends it to the entrepreneurial context. Our findings also support the importance of community in crisis recovery, as highlighted by Parkinson et al. (2017) and Smith (2018). Our research adds a new dimension to the understanding of PsyCap by demonstrating its interplay with the sense of belonging in a polycrisis context. While PsyCap equips individuals with resilience to counteract disruptions (Luthans et al. 2007), we find that its effectiveness in enhancing technological performance is amplified when combined with a strong sense of community belonging. This finding extends the PsyCap literature by highlighting the importance of social context in activating and leveraging individual psychological resources, building on the work of Hmieleski et al. (2015) and Luthans et al. (2015).

Employing a mixed-methods strategy that integrates qualitative and quantitative analyses with AI-driven Natural Language Processing (NLP) techniques has been instrumental in revealing intricate insights that traditional research methods might miss. Our approach facilitates the identification of pivotal topics highlighted by tech founders and the corresponding sentiments, particularly under conditions of stability and crisis. This enables a meaningful comparison between these distinct environmental contexts. This methodology sets a new benchmark for longitudinal studies on entrepreneurship within evolving contexts, allowing us to explore how entrepreneurial dynamics shift over time in response to changing environmental conditions. It not only extends the concept of "entrepreneurial dynamism" (Audretsch et al. 2022a) but also builds on the research of Tojeiro-Rivero and Moreno (2019) concerning contextual factors influencing technological performance. The adoption of this AI-NLP methodology marks a significant, innovative step forward in entrepreneurial research, offering a richer, more nuanced understanding of the complex interactions between entrepreneurs and their environments. This approach shows considerable promise for further application and development in the field (De la Vega Hernández et al. 2023; Dwivedi et al. 2023; Jackson et al. 2022; Lévesque et al. 2022). As entrepreneurship research continues to evolve, such methodological advancements will be essential in capturing the dynamic nature of entrepreneurial ecosystems and their responses to external stimuli. By harnessing large volumes of textual data from diverse sources, this approach opens new avenues for investigating entrepreneurial phenomena. Researchers can gain deeper insights into the intricate relationships between entrepreneurship, innovation, and economic development, ultimately informing both theory and policy in this crucial domain.

Our research introduces a critical new dimension to entrepreneurship literature: the pivotal role of community belonging in driving and enhancing technological performance. This previously underexplored construct advances our understanding of entrepreneurial dynamics, particularly within persistent crisis contexts. Our findings significantly extend the concept of "community resilience" (Aldrich and Meyer 2015) building upon recent work on community-driven business success (Majchrzak and Shepherd 2021), offering fresh insights into how emotional and social embeddedness can fuel technology and innovation. Moreover, our research reinforces and expands upon the crucial role of "entrepreneurial ecosystems" (Spigel and Vinodrai 2021) in fostering entrepreneurial technological performance. By highlighting the emotional and social aspects of the community, we contribute to a more nuanced and broader understanding of whole ecosystem dynamics (Kuckertz et al. 2020; Volkmann et al. 2021). This perspective enriches the ongoing discourse on the multifaceted roles of the ecosystem and the community in cultivating entrepreneurial dynamics. The implications of our findings extend beyond entrepreneurial success to encompass broader societal resilience. By demonstrating the interplay between community belonging and technological performance in entrepreneurship, we contribute to the growing body of literature on entrepreneurship and community in various contexts (Williams et al. 2017; Williams and Shepherd 2021). This emerging aspect in entrepreneurship literature promises to yield valuable insights for both theory development and policy formulation in the field of technological entrepreneurship.

For entrepreneurs, our study highlights the essential role of community support in navigating crises, providing access to vital resources and collaborative opportunities that directly enhance technological performance. For ecosystem builders, the contribution lies in emphasizing the creation of environments that foster both resource access and the development of psychological capital (PsyCap), which empowers entrepreneurs to advance technological innovation amidst ongoing challenges. For academia, our research advocates for integrating community support and PsyCap into entrepreneurship education, ensuring that future entrepreneurs are equipped with the mental resources and networks necessary to drive technological progress in crisis conditions. Finally, for policymakers, our findings offer a framework for fostering entrepreneurial strength. The emphasis on community-building as a strategy for enhancing technological performance can be integrated into economic development plans across different countries and regions. Governments and organizations can adapt these insights to create policies that strengthen local business communities, thereby, though indirectly boosting technological performance and overall economic potency.

Our study provides insights into entrepreneurship during polycrisis conditions, while also presenting limitations that open avenues for future research. First, the geographic focus on Israel warrants consideration. We leveraged Israel's tech ecosystem as a laboratory for examining mechanisms likely applicable across entrepreneurial settings facing similar challenges. However, the specificity of this context may limit full applicability to other regions or cultures. We utilized this setting believing that such robust research can offer inspiration to other places in adversity, illuminating how Israeli tech-entrepreneurs leverage resources to navigate polycrisis and enhance their technological performance. Future research could explore how these mechanisms manifest in different locations, yielding comparative insights (Peerally et al. 2022; Welter et al. 2019). Secondly, our focus on tech startups offers a sector-specific perspective. Tech entrepreneurs, characterized by their risk tolerance and adaptability (Hagenauer and Zipko 2024; Salmony and Kanbach 2022), provide a rich context for examining how they navigate polycrisis. While this emphasis yields important insights, it may not capture the experiences of non-tech entrepreneurs, who often exhibit distinct characteristics (Valdez-Juárez and Castillo-Vergara 2021). Future studies could investigate how these strategies translate to other sectors, expanding and comparing crisis-related strategies across diverse industries. Thirdly, our focus on technological performance exemplifies one dimension of entrepreneurial performance metrics. While we believe that technological performance is pivotal in the current era (Dwivedi et al. 2020; Kraus et al. 2022; Osiyevskyy et al. 2020), we recognize that it represents only one aspect of startups' performance. Future research could explore a broader range of performance metrics, expanding on Zahra's (2021) multi-dimensional approach to entrepreneurship. This could include financial, operational, and marketing metrics, offering a more comprehensive picture of entrepreneurial performance in polycrisis situations (e.g., Bianchi et al. 2017; Devece et al. 2016).

While acknowledging these limitations, our study offers a robust framework for understanding entrepreneurship in polycrisis conditions. It lays the groundwork for future research to extend and deepen these insights across varied contexts and performance dimensions, advancing both theory and practice in this critical field.