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.
Original language | English |
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Pages (from-to) | 531-553 |
Number of pages | 23 |
Journal | Small Business Economics |
Volume | 57 |
Issue number | 1 |
Early online date | 12 Feb 2020 |
DOIs | |
Publication status | Published - 30 Jun 2021 |
Keywords
- Entrepreneurship
- High growth
- Institutions
- Regulations
- Social costs of failure
- Stigma
ASJC Scopus subject areas
- General Business,Management and Accounting
- Economics and Econometrics