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Entrepreneurial exit and entrepreneurial engagement

Author

Listed:
  • Roy Thurik
  • Jolanda Hessels
  • Isabel Grilo
  • Peter van der Zwan
Abstract
Arguing that entrepreneurial exit is an indicator of accumulated entrepreneurial human capital (like ability and experience) we investigate whether such an exit in the recent past positively relates to posterior engagement in various stages of the entrepreneurial process (i.e. potential, intentional, nascent, young, and established entrepreneurship). We use individual-level data for 24 countries that participated in the Global Entrepreneurship Monitor during the years 2004, 2005 and 2006 (some 350,000 observations). Our findings indeed show that recent exit experience decreases the probability of undertaking no entrepreneurial activity, and that it increases the probabilities of being a potential or an intentional entrepreneur. We also investigate under what conditions recent exit increases engagement in entrepreneurial activities. Most important factors that influence entrepreneurial (re-)engagement are gender, fear of failure and knowing an entrepreneur, while educational attainment does not seem to be relevant. Also, some interesting country differences are found.

Suggested Citation

  • 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.
  • Handle: RePEc:eim:papers:h200910
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    References listed on IDEAS

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    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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