Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/307016 
Year of Publication: 
2022
Citation: 
[Journal:] Small Business Economics [ISSN:] 1573-0913 [Volume:] 59 [Issue:] 2 [Publisher:] Springer US [Place:] New York, NY [Year:] 2022 [Pages:] 745-767
Publisher: 
Springer US, New York, NY
Abstract: 
In this paper, we analyze how previously failed entrepreneurs fare with their current venture in terms of survival compared with novices. While previous studies have focused on the superior learning effects of failure experience, we point to the selection process that takes place before failed entrepreneurs become business owners again. One potential driver of this process is entrepreneurial talent. We find that failed entrepreneurs are less likely to survive with their current venture. This result persists for several subgroups of entrepreneurs, if we consider the number of past failure events, or if we control for the inclination of entrepreneurs to pursue high-risk projects. Overall, our results are consistent with the hypothesis that previously failed entrepreneurs are those with below-average entrepreneurial talent.
Subjects: 
Habitual entrepreneurship
Entrepreneurial failure experience
New business survival
IAB/ZEW Start-up Panel
JEL: 
L26
L25
M13
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.