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Chasing mythical creatures – A (not-so-sympathetic) critique of entrepreneurship's obsession with unicorn startups

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  • Kuckertz, Andreas
  • Scheu, Maximilian
  • Davidsson, Per

Abstract

In recent years, the notion of a unicorn, a startup exceeding a premarket valuation of one billion USD, has become one of the most prominent concepts in the practical discourse of entrepreneurship. Consequently, entrepreneurs aim to build unicorns, investors want to participate in their success, policymakers strive to support their emergence, and educators present them as an ideal-type entrepreneurial activity. We challenge this view with a provocative critique of the positive mainstream perception of unicorns. First, we characterize unicorns as an ambiguous analytical category with little value for research and evidence-based policy. Second, we point to the danger of neglecting the multifaceted nature of entrepreneurship by focusing solely on extreme outliers. Third, we highlight the potentially unethical consequences of entrepreneurship's obsession with unicorns. Finally, we conclude that focusing on unicorns contributes to a biased picture of entrepreneurship that favors valuation (i.e., the unicorn) over value creation (i.e., productive entrepreneurship).

Suggested Citation

  • Kuckertz, Andreas & Scheu, Maximilian & Davidsson, Per, 2023. "Chasing mythical creatures – A (not-so-sympathetic) critique of entrepreneurship's obsession with unicorn startups," Journal of Business Venturing Insights, Elsevier, vol. 19(C).
    • Handle: RePEc:eee:jobuve:v:19:y:2023:i:c:s2352673422000634
    DOI: 10.1016/j.jbvi.2022.e00365
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    3. Tekic, Zeljko & Chemikhin, Andrei & Malyy, Maksim, 2024. "Market-first or technology-first? Exploring unicorns’ pathways to extreme valuations," Technology in Society, Elsevier, vol. 77(C).
    4. Billingsley, Joseph & Pollack, Jeffrey M. & Michaelis, Timothy L. & Tracy, Elizabeth M. & Barber, Dennis & Beorchia, Ace & Carr, Jon C. & Gonzalez, Gabe & Harris, Michael L. & Morrow, Grayson & Philli, 2023. "Exploring objective versus subjective social ties using entrepreneurs’ gmail data," Journal of Business Venturing Insights, Elsevier, vol. 20(C).
    5. Gala, Kaushik & Valladares, Carlos D. & Mueller, Brandon A., 2023. "Students' assumptions of Entrepreneurs’ performance: The paradox of excess entry and missed opportunity," Journal of Business Venturing Insights, Elsevier, vol. 20(C).
    6. Davidsson, Per & Sufyan, Muhammad, 2023. "What does AI think of AI as an external enabler (EE) of entrepreneurship? An assessment through and of the EE framework," Journal of Business Venturing Insights, Elsevier, vol. 20(C).
    7. Mauri Laukkanen, 2023. "Understanding the contents and development of nascent entrepreneurs’ belief systems," International Entrepreneurship and Management Journal, Springer, vol. 19(3), pages 1289-1312, September.
    8. Maresch, Daniela & Leo, Hannes & Walsh, Steven T., 2023. "Hotspurs in, sober bores out: A call and an agenda for entrepreneurship and innovation policies that foster rapidly scaling ventures," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    9. Crawford, G. Christopher & Linder, Christian & Lechner, Christian & Villani, Elisa, 2024. "Outlier entrepreneurs: Nonlinear paths and novel ventures," Journal of Business Venturing Insights, Elsevier, vol. 21(C).
    10. Gustav Hägg & Vera Haataja & Agnieszka Kurczewska & Alexander McKelvie, 2024. "Entrepreneurial Responsibility: A Conceptual Framework to Understand Ethical Dualism Throughout the Entrepreneurial Process," Entrepreneurship Theory and Practice, , vol. 48(4), pages 1110-1126, July.

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