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Entrepreneurial exit and entrepreneurial engagement

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  • Jolanda Hessels

    ()

  • Isabel Grilo
  • Roy Thurik
  • Peter Zwan

Abstract

Arguing that entrepreneurial exit is an indicator of accumulated entrepreneurial human capital (like ability and experience) we investigate whether such an exit in the recent past positively relates to posterior engagement in various stages of the entrepreneurial process (i.e. potential, intentional, nascent, young, and established entrepreneurship). We use individual-level data for 24 countries that participated in the Global Entrepreneurship Monitor during the years 2004, 2005 and 2006 (some 350,000 observations). Our findings indeed show that recent exit experience decreases the probability of undertaking no entrepreneurial activity, and that it increases the probabilities of being a potential or an intentional entrepreneur. We also investigate under what conditions recent exit increases engagement in entrepreneurial activities. Most important factors that influence entrepreneurial (re-)engagement are gender, fear of failure and knowing an entrepreneur, while educational attainment does not seem to be relevant. Also, some interesting country differences are found. �

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Bibliographic Info

Article provided by Springer in its journal Journal of Evolutionary Economics.

Volume (Year): 21 (2011)
Issue (Month): 3 (August)
Pages: 447-471

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Handle: RePEc:spr:joevec:v:21:y:2011:i:3:p:447-471

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Related research

Keywords: Entrepreneurial process; Exit; J24; L26; M13;

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References

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Citations

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Cited by:
  1. 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.
  2. Cope, Jason, 2011. "Entrepreneurial learning from failure: An interpretative phenomenological analysis," Journal of Business Venturing, Elsevier, vol. 26(6), pages 604-623.
  3. Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, vol. 42(3), pages 445-465, March.
  4. Rietveld, C.A. & Groenen, P.J.F. & Koellinger, Ph.D. & van der Loos, M.J.H.M. & Thurik, A.R., 2013. "Living Forever: Entrepreneurial Overconfidence at Older Ages," ERIM Report Series Research in Management ERS-2013-012-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni.
  5. Peter van der Zwan & Ingrid Verheul & Roy Thurik & Isabel Grilo, 2009. "Entrepreneurial Progress: Climbing The Entrepreneurial Ladder in Europe and The US," Tinbergen Institute Discussion Papers 09-070/3, Tinbergen Institute, revised 17 Mar 2010.
  6. Bosma, Niels, 2013. "The Global Entrepreneurship Monitor (GEM) and Its Impact on Entrepreneurship Research," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 9(2), pages 143-248, February.
  7. 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.
  8. Sander Wennekers & Jolanda Hessels & Chantal Hartog, 2009. "Global Entrepreneurship Monitor 2008 The Netherlands," Scales Research Reports A200914, EIM Business and Policy Research.
  9. André van Stel & Sander Wennekers & Jolanda Hessels & Peter van der Zwan, 2012. "Global Entrepreneurship Monitor 2011 The Netherlands," Scales Research Reports A201211, EIM Business and Policy Research.
  10. Jolanda Hessels & Peter van der Zwan, 2013. "Start-up motivation and (in)voluntary exit," Scales Research Reports H201309, EIM Business and Policy Research.
  11. Albiol, Judit, 2012. "Business Exits entail greater future levels of entrepreneurship? An empirical analysis at country level," Working Papers 2072/211754, Universitat Rovira i Virgili, Department of Economics.
  12. Sharon Simmons & Johan Wiklund & Jonathan Levie, 2014. "Stigma and business failure: implications for entrepreneurs’ career choices," Small Business Economics, Springer, vol. 42(3), pages 485-505, March.

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