If you don't succeed, should you try again? The role of entrepreneurial experience in venture survival
There remains considerable scholarly debate about the role that prior entrepreneurial experience plays in new venture survival. Drawing on entrepreneurial learning theories, we use panel data on 8,400 new ventures to investigate the impact of four different types of prior entrepreneurial experience (portfolio, serial, failure (bankruptcy/voluntary dissolution) and a mix of success (portfolio/serial) and failure (prior bankruptcy/dissolution) on venture survival outcomes. We find that previously failed entrepreneurs are less likely to survive and, in common with entrepreneurs with mixed prior experiences, are more likely to experience bankruptcy. We find that portfolio and serial experience is unrelated to survival or avoiding bankruptcy. Conclusions for entrepreneurship scholars, entrepreneurs and stakeholders are discussed.
|Date of creation:||2014|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.zew.de/
More information through EDIRC
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.:
- Yancy Vaillant & Esteban Lafuente, 2007. "Do different institutional frameworks condition the influence of local fear of failure and entrepreneurial examples over entrepreneurial activity?," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 19(4), pages 313-337, July.
- Enrico Santarelli & Marco Vivarelli, 2007.
"Entrepreneurship and the process of firms’ entry, survival and growth,"
Industrial and Corporate Change,
Oxford University Press, vol. 16(3), pages 455-488, June.
- Santarelli, Enrico & Vivarelli, Marco, 2006. "Entrepreneurship and the Process of Firms’ Entry, Survival and Growth," IZA Discussion Papers 2475, Institute for the Study of Labor (IZA).
- Augustin Landier & David Thesmar, 2009. "Financial Contracting with Optimistic Entrepreneurs," Review of Financial Studies, Society for Financial Studies, vol. 22(1), pages 117-150, January.
- 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.
- 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.
- Per Davidsson & Scott Gordon, 2012. "Panel studies of new venture creation: a methods-focused review and suggestions for future research," Small Business Economics, Springer, vol. 39(4), pages 853-876, November.
- Stuart, Robert W. & Abetti, Pier A., 1990. "Impact of entrepreneurial and management experience on early performance," Journal of Business Venturing, Elsevier, vol. 5(3), pages 151-162, May.
- 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.
- Rocha, Vera & Carneiro, Anabela & Amorim Varum, Celeste, 2015. "Serial entrepreneurship, learning by doing and self-selection," International Journal of Industrial Organization, Elsevier, vol. 40(C), pages 91-106.
- Robert A. Baron & Michael D. Ensley, 2006. "Opportunity Recognition as the Detection of Meaningful Patterns: Evidence from Comparisons of Novice and Experienced Entrepreneurs," Management Science, INFORMS, vol. 52(9), pages 1331-1344, September.
- Corbett, Andrew C., 2007. "Learning asymmetries and the discovery of entrepreneurial opportunities," Journal of Business Venturing, Elsevier, vol. 22(1), pages 97-118, January.
- P.A. Geroski & José Mata & Pedro Portugal, 2003.
"Founding Conditions and the Survival of New Firms,"
w200301, Banco de Portugal, Economics and Research Department.
- Jason Cope & Frank Cave & Sue Eccles, 2004. "Attitudes of venture capital investors towards entrepreneurs with previous business failure," Venture Capital, Taylor & Francis Journals, vol. 6(2-3), pages 147-172, February.
- Taylor, Mark P, 1999. "Survival of the Fittest? An Analysis of Self-Employment Duration in Britain," Economic Journal, Royal Economic Society, vol. 109(454), pages C140-55, March.
- Jose Plehn-Dujowich, 2010. "A theory of serial entrepreneurship," Small Business Economics, Springer, vol. 35(4), pages 377-398, November.
- Philip R. P. Coelho & James E. McClure, 2004.
"Learning from Failure,"
200402, Ball State University, Department of Economics, revised Jan 2005.
- Ostgaard, Tone A. & Birley, Sue, 1994. "Personal networks and firm competitive strategy--A strategic or coincidental match?," Journal of Business Venturing, Elsevier, vol. 9(4), pages 281-305, July.
- Mathew L. A. Hayward & Dean A. Shepherd & Dale Griffin, 2006. "A Hubris Theory of Entrepreneurship," Management Science, INFORMS, vol. 52(2), pages 160-172, February.
- Gaglio, Connie Marie & Katz, Jerome A, 2001. " The Psychological Basis of Opportunity Identification: Entrepreneurial Alertness," Small Business Economics, Springer, vol. 16(2), pages 95-111, March.
- de Meza, David & Southey, Clive, 1996.
"The Borrower's Curse: Optimism, Finance and Entrepreneurship,"
Royal Economic Society, vol. 106(435), pages 375-86, March.
- De Meza, D. & Southey, C., 1995. "The Borrower's Curse: Optimism, Finance and Enterpreneurship," Discussion Papers 9502, Exeter University, Department of Economics.
- Parker, Simon C., 2006. "Learning about the unknown: How fast do entrepreneurs adjust their beliefs?," Journal of Business Venturing, Elsevier, vol. 21(1), pages 1-26, January.
- Cope, Jason, 2011. "Entrepreneurial learning from failure: An interpretative phenomenological analysis," Journal of Business Venturing, Elsevier, vol. 26(6), pages 604-623.
- Smilor, Raymond W., 1997. "Entrepreneurship: Reflections on a subversive activity," Journal of Business Venturing, Elsevier, vol. 12(5), pages 341-346, September.
- C. Mirjam van Praag, 2003. "Business Survival and Success of Young Small Business Owners," Tinbergen Institute Discussion Papers 03-050/3, Tinbergen Institute.
- 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.
- Sueyoshi, Glenn T, 1995. "A Class of Binary Response Models for Grouped Duration Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 411-31, Oct.-Dec..
- 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.
- Timothy Bates, 2002. "Analysis of Young Small Firms That Have Closed: Delineating Successful from Unsuccessful Closures," Working Papers 02-24, Center for Economic Studies, U.S. Census Bureau.
- 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.
- Wright, Mike & Robbie, Ken & Ennew, Christine, 1997. "Venture capitalists and serial entrepreneurs," Journal of Business Venturing, Elsevier, vol. 12(3), pages 227-249, May.
- Toft-Kehler, Rasmus & Wennberg, Karl & Kim, Phillip H., 2014.
"Practice makes perfect: Entrepreneurial-experience curves and venture performance,"
Journal of Business Venturing,
Elsevier, vol. 29(4), pages 453-470.
- Toft-Kehler, Rasmus & Wennberg, Karl & Kim, Phillip, 2013. "Practice Makes Perfect: Entrepreneurial-Experience Curves and Venture Performance," Ratio Working Papers 210, The Ratio Institute.
- Lin, Zhengxi & Picot, Garnett & Compton, Janice, 2000. " The Entry and Exit Dynamics of Self-Employment in Canada," Small Business Economics, Springer, vol. 15(2), pages 105-25, September.
- Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-70, May.
- Lee, Seung-Hyun & Yamakawa, Yasuhiro & Peng, Mike W. & Barney, Jay B., 2011. "How do bankruptcy laws affect entrepreneurship development around the world?," Journal of Business Venturing, Elsevier, vol. 26(5), pages 505-520, September.
- Paul Westhead & Deniz Ucbasaran & Mike Wright, 2003. "Differences Between Private Firms Owned by Novice, Serial and Portfolio Entrepreneurs: Implications for Policy Makers and Practitioners," Regional Studies, Taylor & Francis Journals, vol. 37(2), pages 187-200.
- Dimo Dimov, 2010. "Nascent Entrepreneurs and Venture Emergence: Opportunity Confidence, Human Capital, and Early Planning," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 1123-1153, 09.
- Honjo, Yuji, 2000. "Business failure of new firms: an empirical analysis using a multiplicative hazards model," International Journal of Industrial Organization, Elsevier, vol. 18(4), pages 557-574, May.
- 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.
- Almus, Matthias & Engel, Dirk & Prantl, Susanne, 2000. "The Mannheim Foundation Panels of the Centre for European Economic Research (ZEW)," ZEW Dokumentationen 00-02, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Ucbasaran, Deniz & Westhead, Paul & Wright, Mike & Flores, Manuel, 2010. "The nature of entrepreneurial experience, business failure and comparative optimism," Journal of Business Venturing, Elsevier, vol. 25(6), pages 541-555, November.
- Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December.
When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:14009. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.