Failing role models and the formation of fear of entrepreneurial failure: a study of regional peer effects in German regions

Michael Wyrwich, Rolf Sternberg and Michael Stuetzer
Authors registered in the RePEc Author Service: Michael Stützer

Journal of Economic Geography, 2019, vol. 19, issue 3, 567-588

Abstract: Entrepreneurial role models influence decisions to start firms. This effect is even stronger if peers and observers live in the same region. However, most studies remain silent about the role of entrepreneurial failure for the direction of role modeling. Failed role models can trigger a deterrence of entrepreneurship in others of the same region. We hypothesize that observing successful entrepreneurs reduces fear of failure, while observing business failure increases fear of failure. By using data on regional entries and exits, we find considerable support for our hypothesis and contribute to literature on regional entrepreneurship.

Keywords: Entrepreneurial failure; role models; peer effect; Global Entrepreneurship Monitor; entrepreneurship (search for similar items in EconPapers)
JEL-codes: D01 L26 M13 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (13)

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