Entrepreneurial growth aspirations at re-entry after failure

Abstract

Purpose: Utilising the Theory of Planned Behaviour as the conceptual framework, the authors argue that entrepreneurial financial failure enhances entrepreneurial growth aspirations for the subsequent start-up projects. Furthermore, this effect is particularly strong for individuals rich in human capital, both general and specific; for them, financial failure of an entrepreneurial business is likely to be subsequently transformed into higher entrepreneurial growth aspirations. Design/methodology/approach: The authors employ multilevel estimation techniques applied to Global Entrepreneurship Monitor data consisting of annual subsamples, each with at least 2,000 observations drawn from the working age population of 95 countries, for the period 2007–2019. Findings: The results confirm that the experience of financial failure, both individual and societal, leads to higher growth aspirations for subsequent ventures, while exit for opportunity reasons has an even stronger positive effect on growth aspirations. Furthermore, higher education and entrepreneurial experience enhance the positive impact of financial failure on the growth aspirations of subsequent start-ups. Originality/value: The authors demonstrate that the Theory of Planned Behaviour, which centres on intentions, can be successfully utilised to understand why entrepreneurial failure may be transformed into high growth aspirations for subsequent projects and why this effect may be enhanced by the human capital of the entrepreneur. Furthermore, the authors apply multilevel methods to a large international dataset from Global Entrepreneurship Monitor and produce novel empirical evidence supporting their theoretical predictions.

Publication DOI: https://doi.org/10.1108/IJEBR-05-2022-0433
Divisions: College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship
Additional Information: Copyright © 2023, Emerald Publishing Limited. This author's accepted manuscript is deposited under a Creative Commons Attribution Non-commercial 4.0 International (CC BY-NC) licence. This means that anyone may distribute, adapt, and build upon the work for non-commercial purposes, subject to full attribution. If you wish to use this manuscript for commercial purposes, please contact permissions@emerald.com
Uncontrolled Keywords: Entrepreneurship,Failure,Human capital,High aspiration entrepreneurship,Global entrepreneurship monitor,Theory of planned behaviour
Last Modified: 18 Apr 2024 07:19
Date Deposited: 26 Jan 2023 16:26
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Related URLs: https://www.eme ... -0433/full/html (Publisher URL)
http://www.scop ... tnerID=8YFLogxK (Scopus URL)
PURE Output Type: Article
Published Date: 2023-02-09
Published Online Date: 2023-01-20
Accepted Date: 2023-01-07
Authors: Fuentelsaz, Lucio
González, Consuelo
Mickiewicz, Tomasz (ORCID Profile 0000-0001-5261-5662)

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