If You Don't Succeed, Should You Try Again? The Role of Entrepreneurial Experience in Venture Survival

47 Pages Posted: 30 Jan 2014

See all articles by Sandra Gottschalk

Sandra Gottschalk

Center for European Economic Research (ZEW)

Francis J. Greene

University of Warwick - Warwick Business School

Daniel Hoewer

ZEW – Leibniz Centre for European Economic Research

Bettina Mueller

Center for European Economic Research (ZEW)

Date Written: January 29, 2014

Abstract

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.

Keywords: venture survival, entrepreneurial experience, panel data

JEL Classification: L26, L25

Suggested Citation

Gottschalk, Sandra and Greene, Francis J. and Hoewer, Daniel and Mueller, Bettina, If You Don't Succeed, Should You Try Again? The Role of Entrepreneurial Experience in Venture Survival (January 29, 2014). ZEW - Centre for European Economic Research Discussion Paper No. 14-009, Available at SSRN: https://ssrn.com/abstract=2387508 or http://dx.doi.org/10.2139/ssrn.2387508

Sandra Gottschalk (Contact Author)

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Francis J. Greene

University of Warwick - Warwick Business School ( email )

Coventry CV4 7AL
United Kingdom

Daniel Hoewer

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Bettina Mueller

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
125
Abstract Views
790
rank
266,684
PlumX Metrics