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Stigma and business failure: implications for entrepreneurs' career choices
Cotsakos College of Business, William Paterson University, Wayne, NJ, USA.
Jönköping University, Jönköping International Business School, JIBS, Business Administration. Martin J. Whitman School of Management, Syracuse University, Syracuse, NY, USA.
Hunter Centre for Entrepreneurship, University of Strathclyde, Glasgow, UK.
2014 (English)In: Small Business Economics, ISSN 0921-898X, E-ISSN 1573-0913, Vol. 42, no 3, 485-505 p.Article in journal (Refereed) Published
Abstract [en]

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.

Place, publisher, year, edition, pages
2014. Vol. 42, no 3, 485-505 p.
Keyword [en]
Entrepreneurship, Business failure, Stigma, Serial entrepreneurship, Entrepreneur careers, Global entrepreneurship monitor
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-25922DOI: 10.1007/s11187-013-9519-3ISI: 000331633800004Local ID: IHHÖvrigtISOAI: oai:DiVA.org:hj-25922DiVA: diva2:789251
Available from: 2015-02-18 Created: 2015-02-18 Last updated: 2016-11-24Bibliographically approved

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