Stigma and business failure: implications for entrepreneurs’ career choices
We use data from global entrepreneurship monitor to examine the act of entrepreneurial reentry by entrepreneurs who exit a failed business. We study reentry by mode of entry and by form of organizing. We find that, in countries where the levels of stigma and regulatory conveyance of stigma markings were at their highest, entrepreneurs who exited failed businesses were less likely to reenter into entrepreneurial activity. Our finding suggests that negative social and economic sanctions that are associated with stigma markings speak only to one side of the entrepreneurship phenomenon. On the other side, stigma can function as a stimulus for entrepreneurs to defy the illegitimacy of the failed business and to actively seek out and engage in innovative behaviors that contribute to the overall diversity of entrepreneurial activities in their country. Copyright Springer Science+Business Media New York 2014
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 42 (2014)
Issue (Month): 3 (March)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/new+%26+forthcoming+titles+%28default%29/journal/11187/PS2|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Pia Arenius & Maria Minniti, 2005. "Perceptual Variables and Nascent Entrepreneurship," Small Business Economics, Springer, vol. 24(3), pages 233-247, 02.
- Rasmusen, Eric, 1996.
"Stigma and Self-Fulfilling Expectations of Criminality,"
Journal of Law and Economics,
University of Chicago Press, vol. 39(2), pages 519-543, October.
- Eric Rasmusen, 1995. "``Stigma and Self-Fulfilling Expectations of Criminality''," Law and Economics 9506001, EconWPA.
- Rasmusen, E., 1992. "Stigma and Self-Fulfilling Expectations of Criminality," Papers 92-019, Indiana - Center for Econometric Model Research.
- Erkko Autio & Saurav Pathak & Karl Wennberg, 2013.
"Consequences of cultural practices for entrepreneurial behaviors,"
Journal of International Business Studies,
Palgrave Macmillan;Academy of International Business, vol. 44(4), pages 334-362, May.
- Autio, Erkko & Pathak, Saurav & Wennberg, Karl, 2013. "Consequences of Cultural Practices for Entrepreneurial Behaviors," Ratio Working Papers 207, The Ratio Institute.
- Shleifer, Andrei & Djankov, Simeon & McLiesh, Caralee, 2007.
"Private credit in 129 countries?,"
27867134, Harvard University Department of Economics.
- John Armour & Douglas Cumming, 2008.
"Bankruptcy Law and Entrepreneurship,"
American Law and Economics Review,
Oxford University Press, vol. 10(2), pages 303-350.
- Jolanda Hessels & Isabel Grilo & Roy Thurik & Peter Zwan, 2011.
"Entrepreneurial exit and entrepreneurial engagement,"
Journal of Evolutionary Economics,
Springer, vol. 21(3), pages 447-471, August.
- Roy Thurik & Jolanda Hessels & Isabel Grilo & Peter van der Zwan, 2009. "Entrepreneurial exit and entrepreneurial engagement," Scales Research Reports H200910, EIM Business and Policy Research.
- Stam, F.C. & Audretsch, D.B. & Meijaard, J., 2006.
ERIM Report Series Research in Management
ERS-2006-017-ORG, 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 University Rotterdam.
- Israel Kirzner, 1999. "Creativity and/or Alertness: A Reconsideration of the Schumpeterian Entrepreneur," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 11(1), pages 5-17, January.
- DeTienne, Dawn R., 2010. "Entrepreneurial exit as a critical component of the entrepreneurial process: Theoretical development," Journal of Business Venturing, Elsevier, vol. 25(2), pages 203-215, March.
- Viral V. Acharya & Krishnamurthy V. Subramanian, 2009.
"Bankruptcy Codes and Innovation,"
Review of Financial Studies,
Society for Financial Studies, vol. 22(12), pages 4949-4988, December.
- Timothy Bates, 2002.
"Analysis of Young Small Firms That Have Closed: Delineating Successful from Unsuccessful Closures,"
02-24, Center for Economic Studies, U.S. Census Bureau.
- Bates, Timothy, 2005. "Analysis of young, small firms that have closed: delineating successful from unsuccessful closures," Journal of Business Venturing, Elsevier, vol. 20(3), pages 343-358, May.
- E. Wayne Nafziger, 2008. "Entrepreneurship and Development," Chapters, in: International Handbook of Development Economics, Volumes 1 & 2, chapter 26 Edward Elgar Publishing.
- Haselmann, Rainer & Pistor, Katharina & Vig, Vikrant, 2006.
"How Law Affects Lending,"
157, University Library of Munich, Germany.
- Nancy Carter & Candida Brush & Patricia Greene & Elizabeth Gatewood & Myra Hart, 2003. "Women entrepreneurs who break through to equity financing: The influence of human, social and financial capital," Venture Capital, Taylor & Francis Journals, vol. 5(1), pages 1-28, January.
- Wennberg, Karl & Wiklund, Johan & DeTienne, Dawn R. & Cardon, Melissa S., 2010.
"Reconceptualizing entrepreneurial exit: Divergent exit routes and their drivers,"
Journal of Business Venturing,
Elsevier, vol. 25(4), pages 361-375, July.
- Wennberg, Karl & Wiklund, Johan & DeTienne, Dawn & Cardon, Melissa, 2009. "Reconceptualizing Entrepreneurial Exit: Divergent Exit Routes and Their Drivers," SSE/EFI Working Paper Series in Business Administration 2009:10, Stockholm School of Economics.
- Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
- Mark Freel & Sara Carter & Stephen Tagg & Colin Mason, 2012. "The latent demand for bank debt: characterizing “discouraged borrowers”," Small Business Economics, Springer, vol. 38(4), pages 399-418, May.
- Cardon, Melissa S. & Stevens, Christopher E. & Potter, D. Ryland, 2011. "Misfortunes or mistakes?: Cultural sensemaking of entrepreneurial failure," Journal of Business Venturing, Elsevier, vol. 26(1), pages 79-92, January.
- Kwon, Seok-Woo & Arenius, Pia, 2010. "Nations of entrepreneurs: A social capital perspective," Journal of Business Venturing, Elsevier, vol. 25(3), pages 315-330, May.
- Singh, Smita & Corner, Patricia & Pavlovich, Kathryn, 2007. "Coping with entrepreneurial failure," Journal of Management & Organization, Cambridge University Press, vol. 13(04), pages 331-344, November.
- Taylor, Mark Zachary & Wilson, Sean, 2012. "Does culture still matter?: The effects of individualism on national innovation rates," Journal of Business Venturing, Elsevier, vol. 27(2), pages 234-247.
- Westhead, Paul & Wright, Mike, 1998. "Novice, portfolio, and serial founders: are they different?," Journal of Business Venturing, Elsevier, vol. 13(3), pages 173-204, May.
- Zoltan Acs & Sameeksha Desai & Jolanda Hessels, 2008. "Entrepreneurship, economic development and institutions," Small Business Economics, Springer, vol. 31(3), pages 219-234, October.
- Kirzner, Israel M, 1999. "Creativity and/or Alertness: A Reconsideration of the Schumpeterian Entrepreneur," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 11(1-2), pages 5-17.
- Shepherd, Dean A. & Wiklund, Johan & Haynie, J. Michael, 2009. "Moving forward: Balancing the financial and emotional costs of business failure," Journal of Business Venturing, Elsevier, vol. 24(2), pages 134-148, March.
When requesting a correction, please mention this item's handle: RePEc:kap:sbusec:v:42:y:2014:i:3:p:485-505. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.