Government policy innovation in spurring nascent entrepreneurship during pandemic

In mixed economic systems, government policies are essential for addressing market failures and economic challenges. The COVID-19 pandemic has had notable impacts on nascent entrepreneurship. To assess government policy effects on nascent enterprise growth, we analyzed data from 39 Asia-Pacific countries using a Panel Quantile Regression via Moments (MM-QR) approach, covering 2006–2020. Our findings indicate that nascent enterprises generally respond positively to policies promoting entrepreneurship, but that special government measures during the pandemic had an inconclusive impact. Our analysis identifies credit market deepening as a crucial factor for promoting nascent enterprises. Thus, policymakers should focus on expanding credit market access to support nascent enterprise growth. This study offers key policy insights for promoting entrepreneurship in mixed economic systems.