IDEAS home Printed from https://ideas.repec.org/a/eee/poleco/v66y2021ics0176268020301026.html
   My bibliography  Save this article

Entrepreneurship, fear of failure, and economic policy

Author

Listed:
  • Dutta, Nabamita
  • Sobel, Russell S.

Abstract

The previous literature finds that self-reported ‘fear of failure’ has a significant negative effect on individuals’ choice to become entrepreneurs. We hypothesize this effect is lessened in economies with a larger number of additional, alternative, entrepreneurial opportunities to pursue if a failure occurs. Prior literature also concludes the number of entrepreneurial opportunities is enhanced significantly by having policies and institutions consistent with higher levels of economic freedom. We therefore test and confirm that fear of failure hurts the entrepreneurial process less when levels of economic freedom are higher as there are more additional chances for failed entrepreneurs to pursue.

Suggested Citation

  • Dutta, Nabamita & Sobel, Russell S., 2021. "Entrepreneurship, fear of failure, and economic policy," European Journal of Political Economy, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:poleco:v:66:y:2021:i:c:s0176268020301026
    DOI: 10.1016/j.ejpoleco.2020.101954
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0176268020301026
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejpoleco.2020.101954?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dutta, Nabamita & Sobel, Russell S., 2023. "Trust and attitudes toward income inequality: Does individualism matter?," European Journal of Political Economy, Elsevier, vol. 78(C).
    2. Christopher J. Boudreaux & Daniel L. Bennett & David S. Lucas & Boris N. Nikolaev, 2023. "Taking mental models seriously: institutions, entrepreneurship, and the mediating role of socio-cognitive traits," Small Business Economics, Springer, vol. 61(2), pages 465-493, August.
    3. Kun Zhang, 2024. "Social Entrepreneurs, Market Dynamics, and Social Enterprise Innovation: An Empirical Study Based on the Global Entrepreneurship Monitor," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8815-8841, June.
    4. Bjørnskov, Christian, 2024. "Economic freedom and the greenhouse gas Kuznets curve," European Journal of Political Economy, Elsevier, vol. 82(C).
    5. Dutta, Nabamita & Kar, Saibal & Ray, Shaswata, 2022. "Human Capital and Self-Employment in India: An Empirical Analysis for Different Cohorts," IZA Discussion Papers 15825, Institute of Labor Economics (IZA).
    6. Ana Borges & Aldina Correia & Eliana Costa e Silva & Glória Carvalho, 2022. "The Dynamics between Structural Conditions and Entrepreneurship in Europe: Feature Extraction and System GMM Approaches," Mathematics, MDPI, vol. 10(8), pages 1-13, April.

    More about this item

    Keywords

    Entrepreneurship; Fear of failure; Economic policy; Economic freedom; Business climate;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:poleco:v:66:y:2021:i:c:s0176268020301026. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505544 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.