Stigma and business failure: Implications for entrepreneurs' career choices

Small Business Economics

Volumn 42, Issue 3, 2014, Pages 485-505

  Simmons, Sharon A ^a   Wiklund, Johan ^b,c,d   Levie, Jonathan ^e  

^a WILLIAM PATERSON UNIVERSITY   (United States)

^b SYRACUSE UNIVERSITY   (United States)

^c JÖNKÖPING INTERNATIONAL BUSINESS SCHOOL   (Sweden)

^d STOCKHOLM SCHOOL OF ECONOMICS   (Sweden)

^e UNIVERSITY OF STRATHCLYDE   (United Kingdom)

Author keywords

Business failure; Entrepreneur careers; Entrepreneurship; Global entrepreneurship monitor; Serial entrepreneurship; Stigma

Indexed keywords

EID: 84893958483     PISSN: 0921898X     EISSN: 15730913     Source Type: Journal    
DOI: 10.1007/s11187-013-9519-3     Document Type: Article

References (62)

1. Acharya, V. V., & Subramanian, K. V. (2009). Bankruptcy codes and innovation. Review of Financial Studies, 22(12), 4949-4988.
2. Acs, Z. J, Arenius, P., Hay, M., & Minniti, M. (2005). Global entrepreneurship monitor 2004 executive report. London Business School and Babson College. London, UK, Babson Park, MA.
3. Acs, Z. J., Desai, S., & Hessels, J. (2008). Entrepreneurship, economic development and institutions. Small Business Economics, 31(3), 235-263.
4. Aldrich, H., & Fiol, C. (1994). Fools rush in? The institutional context of industry creation. Academy of Management Review, 19(4), 645-670.
5. Alvarez, S. A., & Barney, J. B. (2007). Discovery and creation: Alternative theories of entrepreneurial action. Strategic Entrepreneurship Journal, 1(1-2), 11-26.
6. Arenius, P., & Minniti, M. (2005). Perceptual variables and nascent entrepreneurship. Small Business Economics, 24, 233-247.
7. Armour, J., & Cumming, D. J. (2008). Bankruptcy law and entrepreneurship. American Law and Economics Review, 10, 303-350.
8. Autio, E., & Acs, Z. (2010). Intellectual property protection and the formation of entrepreneurial growth aspirations. Strategic Entrepreneurship Journal, 4(3), 234-251.
9. Autio, E., Pathak, S., & Wennberg, K. (2013). Consequences of cultural practices for entrepreneurial behaviors. Journal of International Business Studies, 44, 334-362.
10. Bates, T. (2005). Analysis of young, small firms that have closed: Delineating successful from unsuccessful closures. Journal of Business Venturing, 20, 343-358.
11. Cardon, M. S., Stevens, C. E., & Potter, D. R. (2011). Misfortunes or mistakes? Cultural sensemaking of entrepreneurial failure. Journal of Business Venturing, 26(1), 79-92.
12. Carr, D. (1996). Two paths to self-employment? Women's and men's self-employment in the United States, 1980. Work and Occupations, 23(1), 26.
13. Carter, N., Brush, C., Greene, P., Gatewood, E., & Hart, M. (2003). Women entrepreneurs who break through to equity financing: The influence of human, social and financial capital. Venture Capital, 5(1), 1-28.
14. Cassar, G. (2007). Money, money, money? A longitudinal investigation of entrepreneur career reasons, growth preferences and achieved growth. Entrepreneurship and Regional Development, 19(1), 89-107.
15. Cliff, J. E., Jennings, P. D., & Greenwood, R. (2006). New to the game and questioning the rules: The experiences and beliefs of founders who start imitative vs. innovative firms. Journal of Business Venturing, 21, 633-663.
16. Crocker, J., Major, B., & Steele, C. (1998). Social stigma. In D. T. Gilbert, S. T. Fiske, & G. Lindzey (Eds.), The handbook of social psychology (4th ed., Vol. 2, pp. 504-553). New York: McGraw-Hill.
17. Davidsson, P., & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18(3), 301-332.
18. DeTienne, D. (2010). Entrepreneurial exit as a critical component of the entrepreneurial process: theoretical development. Journal of Business Venturing, 25(2), 203-215.
19. Devers, C. E., Dewett, T., Mishina, Y., & Belsito, C. A. (2009). A general theory of organizational stigma. Organization Science, 20(1), 154-171.
20. DiMaggio, P., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48, 147-160.
21. Djankov, S., McLiesh, C., & Shleifer, A. (2007). Private credit in 129 countries. Journal of Financial Economics, 84(2), 299-329.
22. EOS Gallup Europe. (2004). Entrepreneurship. Flash Eurobarometer No. 146, January. Brussels: European Commission.
23. Erickson, K. T. (1962). Notes on the sociology of deviance. Social Problems, 9, 307-314.
24. Freel, M., Carter, S., Tagg, S., & Mason, C. (2012). The latent demand for bank debt: characterizing "discouraged borrowers". Small Business Economics, 38, 399-418.
25. Gallup. (2010). Entrepreneurship in the EU and beyond: A survey in the EU, EFTA countries, Croatia, Turkey, the US, Japan, South Korea and China. Flash Eurobarometer No. 298, May. Brussels: European Commission.
26. Goffman, E. (1963). Stigma: notes on the management of spoiled identity. Englewood Cliffs, NJ: Prentice-Hall.
27. Haselmann, R., Pistor, K., & Vig, V. (2010). How law affects lending. The Review of Financial Studies, 23(2), 549-580.
28. Headd, B. (2003). Redefining business success: Distinguishing between closure and failure. Small Business Economics, 21, 51-61.
29. Hessels, J., Grilo, I., Thurik, A. R., & van der Zwan, P. W. (2011). Entrepreneurial exit and entrepreneurial engagement. Journal of Evolutionary Economics, 21(3), 447-471.
30. Hudson, B. (2008). Against all odds: A consideration of core-stigmatized organizations. Academy of Management Review, 33(1), 252-266.
31. Jones, E. E., Farina, A., Hastorf, A., Markus, H., Miller, D., & Scott, R. (1984). Social stigma: The psychology of marked relationships. New York: Freeman.
32. Karlsson, T., Honig, B., Welter, F., Shakked, L., & Sadaovski, A. (2005). A cross-national comparison of incubated organizations: An institutional perspective. In D. A. Shepherd & J. A. Katz (Eds.), International entrepreneurship (Advances in entrepreneurship, firm emergence and growth (Vol. 8, pp. 165-184). Bingley, UK: Emerald.
33. Kirzner, I. (1999). Creativity and/or alertness: A reconsideration of the Schumpeterian entrepreneur. Review of Austrian Economics, 11(1-2), 5-17.
34. Kwon, S., & Arenius, P. (2010). Nations of Entrepreneurs: A social capital perspective. Journal of Business Venturing, 25, 315-330.
35. Landier, A. (2005). Entrepreneurship and the stigma of failure. Working paper presented at New York University, New York.
36. Levie, J., & Autio, E. (2011). Regulatory burden, rule of law, and strategic entry of entrepreneurs: An international panel study. Journal of Management Studies, 48(6), 1392-1419.
37. Levie, J., Don, G., & Leleux, B. (2011). The new business mortality myth. In K. Hindle & K. Klyver (Eds.), Handbook of research on new venture creation (pp. 194-215). Cheltenham, UK: Edward Elgar.
38. Meyer, J., & Rowan, B. (1977). Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology, 83, 340-363.
39. Miller, C. T., & Major, B. (2000). Coping with stigma and prejudice. In T. F. Heatherton, R. E. Kleck, M. R. Hebl, & J. G. Hull (Eds.), The social psychology of stigma (pp. 243-272). New York: Guilford.
40. Oliver, C. (1991). Strategic responses to institutional processes. Academy of Management Review, 16, 145-179.
41. Paetzold, R. L., Dipboye, R. L., & Elsbach, K. D. (2008). A new look at stigmatization in and of organizations. Academy of Management Review, 33, 186-193.
42. Ragins, B. R. (2008). Disclosure disconnects: Antecedents and consequences of disclosing invisible stigmas across life domains. The Academy of Management Review, 33(1), 194-215.
43. Rasmusen, E. (1996). Stigma and self-fulfilling expectations of criminality. Journal of Law and Economics, 39, 519-543.
44. Raudenbush, S. W., & Bryk, A. S. (2002). Hierarchical linear models. Thousand Oaks, CA: Sage.
45. Reynolds, P. D., Hay, M., & Camp, S. M. (1999). Global entrepreneurship monitor 1999 executive report. Kansas City, MO: Ewing Marion Kauffman Foundation.
46. Sarasvathy, S. D., Dew, N., Velamuri, S. R., & Venkataraman, S. (2003). Three views of entrepreneurial opportunity. In Z. J. Acs & D. B. Audretsch (Eds.), Handbook of entrepreneurship research (pp. 141-160). Dordrecht: Kluwer.
47. Scott, W. R. (1987). The adolescence of institutional theory. Administrative Science Quarterly, 32, 493-511.
48. Semadeni, M., Cannella, A., & Fraser, D. S. (2008). Fight or flight: Managing stigma in executive careers. Strategic Management Journal, 29, 557-567.
49. Settles, I. H. (2004). When multiple identities interfere: The role of identity centrality. Personality and Social Psychology Bulletin, 30, 487-500.
50. Shane, S., & Venkataraman, S. (2000). The promise of entrepreneurship as a field of research. Academy of Management Review, 25(1), 217-226.
51. Shepherd, D. A. (2003). Learning from business failure: Propositions about the grief recovery process for the self-employed. Academy of Management Review, 282, 318-329.
52. Shepherd, D. A., Wiklund, J., & Haynie, J. M. (2009). Moving forward: Balancing the financial and emotional costs of business failure. Journal of Business Venturing, 24, 134-138.
53. Singh, S., Corner, P., & Pavlovich, K. (2007). Coping with entrepreneurial failure. Journal of Management and Organization, 13(4), 331.
54. Stam, E., Audretsch, D., & Meijaard, J. (2008). Renascent entrepreneurship. Journal of Evolutionary Economics, 18(3), 493-507.
55. Stinchcombe, A. L. (1965). Social structure and organizations. In J. G. March (Ed.), Handbook of organizations (pp. 153-193). Chicago: Rand McNally.
56. Sutton, R. I., & Callahan, A. L. (1987). The stigma of bankruptcy: Spoiled image and its management. Academy of Management Journal, 30, 405-436.
57. Taylor, M. Z., & Wilson, S. (2012). Does culture still matter? The effects of individualism on national innovation rates. Journal of Business Venturing, 27(2), 234-247.
58. Wennberg, K., Wiklund, J., DeTienne, D., & Cardon, M. (2010). Reconceptualizing entrepreneurial exit: Divergent exit routes and their drivers. Journal of Business Venturing, 25(4), 361-375.
59. Westhead, P., & Wright, M. (1998). Novice, portfolio and serial founders: are they different? Journal of Business Venturing, 13(3), 173-204.
60. Wiesenfeld, B. M., Wurthmann, K. A., & Hambrick, D. C. (2008). The stigmatization and devaluation of elites associated with corporate failures: A process model. Academy of Management Review, 33, 231-251.
61. World Bank. (2011). Doing business report 2011. Washington DC: World Bank Publications, World Bank. Available online at www. doingbusiness. org.
62. Wyer, M., Barbercheck, M., Geisman, D., Ozturk, H. O., & Wayne, M. (2001). Female, science and technology: A reader in feminist science. New York: Routledge.