Stigmatization of failed entrepreneurs : prevalence and solutions

Jenkins, Anna, Hellerstedt, Karin, Hunter, Erik, & Davidsson, Per (2014) Stigmatization of failed entrepreneurs : prevalence and solutions. In 2014 Babson College Entrepreneurship Research Conference, 4 – 7 June 2014, Ontario, Canada.

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Abstract

This paper investigates why entrepreneurs experience stigma after firm failure and what can be done to reduce it. We use attribution theory as an overarching theoretical framework and hypothesize that entrepreneurs are held more accountable than employees for their unemployment after firm failure irrespective of the circumstances causing the failure. To test this hypothesis we conduct a between group, 2x2 full factorial experiment where the cause of the failure is manipulated. We find that entrepreneurs are held more accountable for firm failure irrespective of the circumstances causing the failure and that respondents who view failure as an inherent risk of firm ownership are less likely to stigmatize failed entrepreneurs.

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ID Code: 80105
Item Type: Conference Paper
Refereed: Yes
Keywords: Failed Entrepreneurs, Entrepreneurship, Firm Failure
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Entrepreneurship (150304)
Divisions: Current > Research Centres > Australian Centre for Entrepreneurship
Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Management
Copyright Owner: Copyright 2014 [please consult the author]
Deposited On: 14 Jan 2015 23:46
Last Modified: 16 Jan 2015 23:20

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