Abstract

Political instability is highly prevalent in today’s world. This has become especially remarkable following the COVID-19 pandemic. Yet political instability as a context remains markedly underresearched in the management literature, especially in relation to entrepreneurship, a significant contributor to a country’s economic activity. This conceptual article refers to four principles of entrepreneurial effectuation theory (the Lemonade principle, the Crazy Quilt principle, the Bird in Hand principle, and the Affordable Loss principle) to offer a typology of entrepreneurs’ behaviors in contexts of political instability. This typology draws from and extends the exit–voice–loyalty–neglect (EVLN) framework to the microlevel entrepreneurship literature. Theoretical and practical implications are discussed.