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Entrepreneurial exit, ability and engagement across countries in different stages of development

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  • Jolanda Hessels
  • Peter van der Zwan

Abstract

Entrepreneurial ability has been suggested to be an important predictor of entrepreneurial engagement. In this paper we investigate the extent to which different types of recent entrepreneurial exit experiences foster entrepreneurial ability and subsequent entrepreneurial engagement. We discriminate between several exit modes and distinguish the following engagement levels: potential, intentional, nascent, young and established entrepreneurship. We use individual-level data for 67 countries that participated in the Global Entrepreneurship Monitor during 2007, 2008 and 2009. Our findings indeed show that entrepreneurial exit directly fosters entrepreneurial engagement as well as indirectly through enhanced entrepreneurial ability. We also find dat positive as well as negative exit experiences foster subsequent entrepreneurial engagement. In addition, the impacts of exit on ability and exit on engagement increase with the stage of development of a country.

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  • Jolanda Hessels & Peter van der Zwan, 2011. "Entrepreneurial exit, ability and engagement across countries in different stages of development," Scales Research Reports H201116, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:h201116
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    References listed on IDEAS

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    1. Jose Plehn-Dujowich, 2010. "A theory of serial entrepreneurship," Small Business Economics, Springer, vol. 35(4), pages 377-398, November.
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    3. Diamanto Politis, 2005. "The Process of Entrepreneurial Learning: A Conceptual Framework," Entrepreneurship Theory and Practice, , vol. 29(4), pages 399-424, July.
    4. Robert E. Lucas Jr., 1978. "On the Size Distribution of Business Firms," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 508-523, Autumn.
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    Cited by:

    1. Noelia, Franco-Leal & Rosalia, Diaz-Carrion, 2020. "A dynamic analysis of the role of entrepreneurial ecosystems in reducing innovation obstacles for startups," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    2. Noelia Franco-Leal & Rosalia Diaz-Carrion, 2022. "How financing and information drive international corporate entrepreneurs’ innovations," Journal of International Entrepreneurship, Springer, vol. 20(2), pages 316-343, June.
    3. Kai Du & Allan O’Connor, 2018. "Entrepreneurship and advancing national level economic efficiency," Small Business Economics, Springer, vol. 50(1), pages 91-111, January.
    4. Lucio Fuentelsaz & Consuelo González & Juan P. Maícas, 2021. "High-growth aspiration entrepreneurship and exit: the contingent role of market-supporting institutions," Small Business Economics, Springer, vol. 57(1), pages 473-492, June.

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