Abstract
This paper investigates the impact of the COVID-19 pandemic on total entrepreneurial activity (TEA) in selected countries of the Adriatic-Ionian Region in 2020 and 2021. The impact of the COVID-19 pandemic was measured through the following factors: a decrease in household income, starting a business is more difficult than a year ago, entrepreneurs pursuing new opportunities due to the pandemic, and increased use of digital technology to sell products or services. Using data for 13 EU countries, 4 in the Adriatic-Ionian Region and 9 in the other part of the EU, we found that changes in household income and recognized market opportunities have had a significant impact on total early-stage entrepreneurial activity (TEA) in the Adriatic-Ionian region, as well as in the other part of the EU during COVID-19 pandemic. Furthermore, this research pointed out, that decrease in household income encouraged entrepreneurship driven by necessity during the pandemic. Also, recognized market opportunities encouraged the establishment of a new business regardless of the difficulties caused by the pandemic. Recommendations are given on how to revive the economy by encouraging the development of entrepreneurship.