Fear not, want not: Untangling the effects of social cost of failure on high-growth entrepreneurship

Chong Kyoon Lee (), Griffin W. Cottle (), Sharon A. Simmons () and Johan Wiklund ()
Additional contact information
Chong Kyoon Lee: James Madison University
Griffin W. Cottle: University of Missouri-Kansas City
Sharon A. Simmons: University of Missouri-Kansas City
Johan Wiklund: Syracuse University

Small Business Economics, 2021, vol. 57, issue 1, No 22, 553 pages

Abstract: Abstract Prior research on the effect that formal and informal institutions have on high-growth entrepreneurship has tended to propose policies aimed at either lowering the social cost of failure in society, or creating business-friendly entry environments aimed at increasing the rate of entrepreneurship. These policies have triggered a debate about whether policies that focus on stimulating high-growth entrepreneurship conflict with policy goals aimed at decreasing the social cost of failure in society. Using approach/avoidance as a lens, we examine the relationship between high social costs of failure and the odds of individuals engaging in growth-based entrepreneurship. Our unique dataset captures the entry decisions of 208,089 individuals in 29 OECD countries. We find that while countries with a higher social cost of failure experience lower total entrepreneurial activity, they have higher odds of entrepreneurs having high-growth aspirations and firms with export-led orientations.

Keywords: Entrepreneurship; Institutions; Stigma; Regulations; High growth; Social costs of failure (search for similar items in EconPapers)
JEL-codes: L26 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://link.springer.com/10.1007/s11187-020-00324-0 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:57:y:2021:i:1:d:10.1007_s11187-020-00324-0

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/11187/PS2

DOI: 10.1007/s11187-020-00324-0

Access Statistics for this article

Small Business Economics is currently edited by Zoltan J. Acs and David B. Audretsch

More articles in Small Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().