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How Past Failure Predicts Subsequent Entrepreneurial Intention: A Comparative Study of Mainland China and Taiwan

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  • Hui He

    (Business school, Beijing Technology and Business University, Beijing 100048, China)

  • Yan Bai

    (Business school, Beijing Technology and Business University, Beijing 100048, China)

  • Xia Xiao

    (College of Business Administration, Capital University of Economics and Business, Beijing 100070, China)

Abstract

Entrepreneurship is the center of economic growth process, and it is context-sensitive. We compare Mainland China and Taiwan by investigating the impact of past failure on individual entrepreneurs. Using a large amount of data from GEM (Global Entrepreneurship Monitor), a logistic regression approach was adopted and most of the major variables in models are correlated positively. We demonstrate that past failure does affect entrepreneurs’ perceived capability and next enterprising activity positively in the two regions. Unlike the moderating role of culture, entrepreneurial motivation exerts a quite different impact on the relationship between past failure and entrepreneurs’ future intention in the two regions. Our results provide not only theoretical implications for context-related entrepreneurial motivation, but practical suggestions for entrepreneurs and policy makers.

Suggested Citation

  • Hui He & Yan Bai & Xia Xiao, 2020. "How Past Failure Predicts Subsequent Entrepreneurial Intention: A Comparative Study of Mainland China and Taiwan," Sustainability, MDPI, vol. 12(6), pages 1-17, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:6:p:2331-:d:333419
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    Cited by:

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    2. Anton Miglo, 2022. "Theories of Crowdfunding and Token Issues: A Review," JRFM, MDPI, vol. 15(5), pages 1-28, May.
    3. Junguang Gao & Tao Chen & Thomas Schøtt & Fuzhen Gu, 2022. "Entrepreneurs’ Life Satisfaction Built on Satisfaction with Job and Work–Family Balance: Embedded in Society in China, Finland, and Sweden," Sustainability, MDPI, vol. 14(9), pages 1-21, May.
    4. Graham, Byron & Bonner, Karen, 2022. "One size fits all? Using machine learning to study heterogeneity and dominance in the determinants of early-stage entrepreneurship," Journal of Business Research, Elsevier, vol. 152(C), pages 42-59.
    5. Kumju Hwang & Jinsook Choi, 2021. "How Do Failed Entrepreneurs Cope with Their Prior Failure When They Seek Subsequent Re-Entry into Serial Entrepreneurship? Failed Entrepreneurs’ Optimism and Defensive Pessimism and Coping Humor as a ," IJERPH, MDPI, vol. 18(13), pages 1-24, June.

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