Entrepreneurship in Crises: How Pakistani Startups are Adapting to Prevailing Crises

This study investigates how Pakistani startups have adapted to multiple overlapping crises between 2015 and 2023, including the COVID-19 pandemic, the 2022 floods, financial instability, and foreign exchange volatility. Using quarterly data, the research constructs a composite Adaptation Index based on digital startup activity, SME credit uptake, and documented business pivots. A multiple linear regression model, supplemented with robustness checks, assesses how crisis-specific variables influenced adaptation outcomes. The results show that flood severity and COVID-19 policy stringency significantly hindered adaptation, while stronger macro-financial conditions enhanced it. Other variables, such as forex volatility, GDP growth, and internet penetration, were not statistically significant. The lagged Adaptation Index emerged as a strong predictor of future adaptation, indicating that resilience is path-dependent and accumulates over time. The findings support a combined theoretical lens—Resource-Based View and Contingency Theory—to explain crisis response. This research highlights the importance of targeted, sector-specific policies and proactive ecosystem support to build long-term entrepreneurial resilience in volatile environments like Pakistan.