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The nature of entrepreneurial experience, business failure and comparative optimism

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Author Info

  • Ucbasaran, Deniz
  • Westhead, Paul
  • Wright, Mike
  • Flores, Manuel

Abstract

Entrepreneurial (i.e. business ownership) experience may enable some entrepreneurs to temper their comparative optimism in subsequent ventures. The nature of entrepreneurial experience can shape how entrepreneurs adapt. Using data from a representative survey of 576 entrepreneurs in Great Britain, we find that experience with business failure was associated with entrepreneurs who are less likely to report comparative optimism. Portfolio entrepreneurs are less likely to report comparative optimism following failure; however, sequential (also known as serial) entrepreneurs who have experienced failure do not appear to adjust their comparative optimism. Conclusions and implications for entrepreneurs and stakeholders are discussed.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Business Venturing.

Volume (Year): 25 (2010)
Issue (Month): 6 (November)
Pages: 541-555

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Handle: RePEc:eee:jbvent:v:25:y:2010:i:6:p:541-555

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Web page: http://www.elsevier.com/locate/jbusvent

Related research

Keywords: Comparative optimism Entrepreneurial experience Business failure experience Habitual (repeat) entrepreneurs Sequential (serial) and portfolio entrepreneurs;

References

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  1. Philipp Köllinger & Maria Minniti & Christian Schade, 2005. ""I Think I Can, I Think I Can": Overconfidence and Entrepreneurial Behavior," Discussion Papers of DIW Berlin 501, DIW Berlin, German Institute for Economic Research.
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Citations

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Cited by:
  1. Baron, Robert A. & Hmieleski, Keith M. & Henry, Rebecca A., 2012. "Entrepreneurs' dispositional positive affect: The potential benefits – and potential costs – of being “up”," Journal of Business Venturing, Elsevier, vol. 27(3), pages 310-324.
  2. Wright, Mike & Kellermanns, Franz W., 2011. "Family firms: A research agenda and publication guide," Journal of Family Business Strategy, Elsevier, vol. 2(4), pages 187-198.
  3. Gottschalk, Sandra & Greene, Francis J. & Höwer, Daniel & Müller, Bettina, 2014. "If you don't succeed, should you try again? The role of entrepreneurial experience in venture survival," ZEW Discussion Papers 14-009, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Vera Rocha & Anabela Carneiro & Celeste Amorim Varum, 2013. "Serial entrepreneurship, learning by doing and self-selection," CEF.UP Working Papers 1312, Universidade do Porto, Faculdade de Economia do Porto.
  5. Wood, Matthew S. & McKelvie, Alexander & Haynie, J. Michael, 2014. "Making it personal: Opportunity individuation and the shaping of opportunity beliefs," Journal of Business Venturing, Elsevier, vol. 29(2), pages 252-272.
  6. Dunkelberg, William & Moore, Carmen & Scott, Jonathan & Stull, William, 2013. "Do entrepreneurial goals matter? Resource allocation in new owner-managed firms," Journal of Business Venturing, Elsevier, vol. 28(2), pages 225-240.
  7. Cassar, Gavin, 2014. "Industry and startup experience on entrepreneur forecast performance in new firms," Journal of Business Venturing, Elsevier, vol. 29(1), pages 137-151.
  8. Jenkins, Anna S. & Wiklund, Johan & Brundin, Ethel, 2014. "Individual responses to firm failure: Appraisals, grief, and the influence of prior failure experience," Journal of Business Venturing, Elsevier, vol. 29(1), pages 17-33.
  9. Vincenza Odorici & Manuela Presutti, 2013. "The entrepreneurial experience and strategic orientation of high-tech born global start-ups: An analysis of novice and habitual entrepreneurs," Journal of International Entrepreneurship, Springer, Springer, vol. 11(3), pages 268-291, September.
  10. Bengtsson, Ola & Ekeblom, Daniel, 2014. "The Bright but Right View? New Evidence on Entrepreneurial Optimism," Working Papers, Lund University, Department of Economics 2014:1, Lund University, Department of Economics.
  11. Parker, Simon C., 2013. "Do serial entrepreneurs run successively better-performing businesses?," Journal of Business Venturing, Elsevier, vol. 28(5), pages 652-666.
  12. B. Deschamps & S. Geindre, 2011. "Les Risques Du Processus Repreneurial En Pme," Post-Print halshs-00661565, HAL.
  13. Bengtsson, Ola & Ekeblom, Daniel, 2014. "The Bright but Right View? A New Type of Evidence on Entrepreneurial Optimism," Working Paper Series, Research Institute of Industrial Economics 1008, Research Institute of Industrial Economics.

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