Entrepreneurial exit and entrepreneurial engagement

By J. Hessels, Isabel Grilo, Roy Thurik, Peter van der Zwan. 2011

259 citations recorded by the source corpus.

This paper investigates whether and how a recent entrepreneurial exit relates to subsequent engagement. We discriminate between six levels of engagement including none, potential, intentional, nascent, young and established entrepreneurship. We use individual-level data for 24 countries that participated in the Global Entrepreneurship Monitor during 2004, 2005 and 2006 (some 350,000 observations). Our findings indeed show that a recent exit decreases the probability of undertaking no entrepreneurial activity, whereas it substantially increases the probabilities of being involved in all other engagement levels. Investigating the conditions under which an exit increases engagement in entrepreneurial activities, we find that the probability of entrepreneurial engagement after exit is higher for males, for persons who know an entrepreneur and for persons with a low fear of failure. Educational attainment does not seem to be relevant. Moreover, there exists large cross-country variation in the probability of entrepreneurial engagement after exit.

Subfields: Accounting, Economics and Econometrics, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/645cc8643d615b0751390dc7ad80ae3c68f34dd2

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Citations in the corpus

The dualistic regulatory effect of passion on the relationship between fear of failure and negative affect: Insights from facial expression analysis (2020, background): “Moreover, although fear of failure is considered an enduring characteristic of the individual (e.g., Arenius and Minniti, 2005; Hessels et al., 2011), we theorize and find that this fear may not always be highly salient.”
Stigma and business failure: implications for entrepreneurs’ career choices (2014, background): “There is empirical evidence of cross country differences in the probability of entrepreneurial reentry after failure (Hessels et al, 2011).”
The Effects of Business Failure Experience on Successive Entrepreneurial Engagements: An Evolutionary Phase Model (2018, background): “Studies have therefore argued that entrepreneurs’ prior experience and knowledge evolves as strategic dividends or hangovers and intertwine with the circumstances of time and place to influence the character of subsequently started ventures (Hessels et al., 2011; Ogbonna & Harris, 2001; Ucbasaran et”
Entrepreneurial leadership, capabilities and firm growth (2015, background): “Most research on the impact of fear of failure focuses on the decision to start an entrepreneurial venture rather than the decision to grow an established venture (e.g. Hessels et al., 2011).”
Life After Business Failure (2013, background): “21 Finally, based on a study of expert entrepreneurs, Sarasvathy (2008) demonstrated how entrepreneurs seek to minimize the financial costs of failure by deploying the “affordable loss principle.”
Entrepreneurial role models, fear of failure, and institutional approval of entrepreneurship: a tale of two regions (2016, background): “Several studies (Brixy et al., 2012; Hessels et al., 2011; Ramos-Rodriguez et al., 2012) report that fear of failure negatively influences individual’s transitions through the entrepreneurial process and the level of start-up activity.”
Making sense of entrepreneurial exit strategies: A typology and test (2015, background): “…after 4 years Closed and successful Closed and unsuccessful Survived after 4 years, 50%; closed and successful, 17%; closed and unsuccessful, 33% Hessels et al. (2011) 350,000 observations from 24 countries from 2004–2006 who participated in the GEM Entrepreneurial exit and entrepreneurial…”
A systematic literature review on entrepreneurial intentions: citation, thematic analyses, and research agenda (2015, background): “Nevertheless, knowledge of the mechanisms and the temporalities that affect how EIs lead to behaviors is still poor (Hessels et al. 2011; Kautonen et al. 2013; Laspita et al. 2012).”
A reconceptualization of fear of failure in entrepreneurship (2016, background): “Given the format of the fear of failure measure, the results unsurprisingly suggest a negative influence of fear of failure on entrepreneurial behavior (e.g., Autio and Pathak, 2010; Brixi et al., 2012; Hessels et al., 2011; Vaillant and Lafuente, 2007; Wennberg et al., 2013).”
Entrepreneurs’ human capital and growth aspirations: the moderating role of regional entrepreneurial culture (2019, background): “This is because general skills tend to be acquired via formal education and specific skills through start-up experience (Hessels et al. 2011; Unger et al. 2011).”
What do we really mean when we talk about ‘exit’? A critical review of research on entrepreneurial exit (2014, unknown): “Existing research analysing entrepreneurial exit has focused on the exit of the individual (exit from self-employment) (e.g. Bates, 2005; Hessels et al., 2011; Stam et al., 2010; Sullivan et al., 1997; Van Praag, 2003) or the exit of the firm from the market (organisational exit) (e.”