High-growth aspiration entrepreneurship and exit: the contingent role of market-supporting institutions

Fuentelsaz, Lucio; González, Consuelo; Maícas, Juan P.

doi:10.1007/s11187-020-00320-4

Cited by 27 publications

(25 citation statements)

References 107 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Such entrepreneur exit and re-entry has attracted the attention of several researchers (Amankwah-Amoah et al, 2022;Cefis et al, 2022;De Hoe & Janssen, 2022;Gottschalk & Müller, 2022;Simmons et al, 2014). Entrepreneurs who experienced a business exit due to poor performance -usually labelled in the literature as a business failure or involuntary exit (Fuentelsaz et al, 2021;Justo et al, 2015) -may have better opportunity recognition and exploitation skills for the next venture (Mueller & Shepherd, 2016;Ucbasaran et al, 2013). However, they may also suffer financial, emotional, and social costs that prevent new entrepreneurial engagement (Jenkins, 2022;Ucbasaran et al, 2013).…”

Section: Introductionmentioning

confidence: 99%

Engagement in entrepreneurship after business failure. Do formal institutions and culture matter?

2023

View full text Add to dashboard Cite

Despite the extensive literature on the relationship between entrepreneurship and institutions, there is limited knowledge of the relationship between institutions and engagement after failure. This study compares the entrepreneurial engagement of entrepreneurs who have recently experienced failure and individuals without entrepreneurial experience, emphasizing the interaction of government policies and programmes (formal institutions) and individualistic/collectivist cultures (informal institutions) with business failure and its impact on entrepreneurial engagement. We test our hypotheses using multilevel analysis on a large cross-sectional sample that combines individual-level data from the Global Entrepreneurship Monitor (GEM) database with country-level data from 49 economies. We provide evidence of selection bias for the entrepreneurial engagement of entrepreneurs after failures and of the role of culture as a significant aspect of re-entry into entrepreneurship. Therefore, our evidence helps reinforce the view that postfailure entrepreneurs are a special group of entrepreneurs and validates the contribution of institutional economic theory in explaining this phenomenon, especially the key role of informal institutions.

show abstract

Section: Introductionmentioning

confidence: 99%

Engagement in entrepreneurship after business failure. Do formal institutions and culture matter?

2023

View full text Add to dashboard Cite

show abstract

“…(2015), Justo et al. (2015) and Fuentelsaz et al. (2021) for different research questions; see also conceptual discussions by Jenkins and McKelvie (2016), DeTienne and Wennberg (2016) and Corner et al.…”

Section: Methodsmentioning

confidence: 99%

“…Many new ventures close, yet there are different motives for leaving the market (Ucbasaran et al. , 2013; Fuentelsaz et al. , 2021).…”

Section: Theory and Hypothesesmentioning

confidence: 99%

“…4. It could be argued that growth aspirations are subjective self-reported proxies and, thus, do not properly measure the quality of new ventures. Nevertheless, consistent with the Theory of Planned Behaviour that postulates that intentions affect behaviour (Ajzen, 1988; 1991), the literature argues that this potential job creation is a good predictor of subsequent actual job creation (Autio and Acs, 2010; Decker et al ., 2020; Fuentelsaz et al ., 2021; Stam and Van Stel, 2011) and therefore can lead to the high-growth firms that are important to the public policy agenda (Fischer and Reuber, 2003). …”

Section: Notesmentioning

confidence: 99%

See 1 more Smart Citation

Entrepreneurial growth aspirations at re-entry after failure

Fuentelsaz

González

Mickiewicz

2023

IJEBR

Self Cite

View full text Add to dashboard Cite

PurposeUtilising the Theory of Planned Behaviour as the conceptual framework, the authors argue that entrepreneurial financial failure enhances entrepreneurial growth aspirations for the subsequent start-up projects. Furthermore, this effect is particularly strong for individuals rich in human capital, both general and specific; for them, financial failure of an entrepreneurial business is likely to be subsequently transformed into higher entrepreneurial growth aspirations.Design/methodology/approachThe authors employ multilevel estimation techniques applied to Global Entrepreneurship Monitor data consisting of annual subsamples, each with at least 2,000 observations drawn from the working age population of 95 countries, for the period 2007–2019.FindingsThe results confirm that the experience of financial failure, both individual and societal, leads to higher growth aspirations for subsequent ventures, while exit for opportunity reasons has an even stronger positive effect on growth aspirations. Furthermore, higher education and entrepreneurial experience enhance the positive impact of financial failure on the growth aspirations of subsequent start-ups.Originality/valueThe authors demonstrate that the Theory of Planned Behaviour, which centres on intentions, can be successfully utilised to understand why entrepreneurial failure may be transformed into high growth aspirations for subsequent projects and why this effect may be enhanced by the human capital of the entrepreneur. Furthermore, the authors apply multilevel methods to a large international dataset from Global Entrepreneurship Monitor and produce novel empirical evidence supporting their theoretical predictions.

show abstract

“…The importance of the academy in the entrepreneurial process becomes relevant when it comes to guiding and promoting entrepreneurship (Raposo & Paço, 2011;Sarıkaya & Coşkun, 2015;Solesvik et al, 2014) whether in the rural sector or in a specific city. The above highlights the central importance of business, academia, and government in the structuring of an entrepreneurial ecosystem that allows the generation of high-impact and innovative ventures, in addition to the ventures generated by the entrepreneur's own need to survive (Cantner et al, 2020;Fuentelsaz et al, 2020;Stam & van de Ven, 2021).…”

Section: Culture and Entrepreneurshipmentioning

confidence: 99%

Culture as an obstacle for entrepreneurship

2022

View full text Add to dashboard Cite

This research was aimed to identify the main reasons why entrepreneurs in the city of Ibagué, who structure business ideas and participate in contests and/or calls, do not continue the entrepreneurial process until the creation of their companies. After applying the validated instrument (survey) to more than 100 students from the Universidad de Ibagué and expert advisers from the department of Tolima, made up of universities, entrepreneurs, and public–private institutions, with interests in entrepreneurship; it was possible to recognize that the main reason, why entrepreneurs generate ideas, but not companies, is the cultural factor. The foregoing is based on the fact that Tolima has been a quintessential agricultural department and this situation has contributed greatly to the fact that the entrepreneurial spirit has not been developed in people. Within the research results it was detected that in contrast with other cities of Colombia, like Manizales and Medellín, Ibagué has not been able to consolidate a solid entrepreneurial ecosystem due to the lack of coordination among private, public, and academic sectors, and on the other side, a majority of people from Ibagué do not have family support for the development of their initiatives, being fundamental components for the creation of enterprises. Among the recommendations proposed in the study is the construction of an entrepreneurial ecosystem, because it will allow the participation of the Triple Helix by providing opportunities to all entrepreneurs in the region; in addition, it is considered important that educational institutions, both schools and universities, promote the development of entrepreneurial skills and competencies in individuals involving their families.

show abstract

High-growth aspiration entrepreneurship and exit: the contingent role of market-supporting institutions

Cited by 27 publications

References 107 publications

Engagement in entrepreneurship after business failure. Do formal institutions and culture matter?

Engagement in entrepreneurship after business failure. Do formal institutions and culture matter?

Entrepreneurial growth aspirations at re-entry after failure

Culture as an obstacle for entrepreneurship

Contact Info

Product

Resources

About