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Entrepreneurial Persistence Beyond Survival: Measurement and Determinants

Author

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  • Marco Caliendo

    (University of Potsdam, IZA Bonn, DIW Berlin, IAB Nuremberg)

  • Maximilian Goethner

    (Friedrich Schiller University Jena)

  • Martin Weißenberger

    (University of Potsdam)

Abstract

Entrepreneurial persistence is demonstrated by an entrepreneur’s continued positive maintenance of entrepreneurial motivation and constantly-renewed active engagement in a new business venture despite counter forces or enticing alternatives. It is thus a crucial factor for entrepreneurs when pursuing and exploiting their business opportunities and to realize potential economic gains and benefits. Using rich data on a representative sample of German business founders, we investigate the determinants of entrepreneurial persistence. Next to observed survival we also construct a hybrid persistence measure capturing also the motivational dimension of persistence. We analyze the influence of individual-level (human capital and personality) and business-related characteristics on both measures as well as their relative importance. We find that the two indicators emphasize different aspects of persistence. For the survival indicator, the predictive power is concentrated in business characteristics and human capital, while for hybrid persistence, the dominant factors are business characteristics and personality. Finally, we show that results are heterogeneous across subgroups. In particular, formerly-unemployed founders do not differ in survival chances, but they are more likely to lack a high psychological commitment to their business ventures.

Suggested Citation

  • Marco Caliendo & Maximilian Goethner & Martin Weißenberger, 2019. "Entrepreneurial Persistence Beyond Survival: Measurement and Determinants," CEPA Discussion Papers 11, Center for Economic Policy Analysis.
    • Handle: RePEc:pot:cepadp:11
    DOI: 10.25932/publishup-43456
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    Cited by:

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    2. Gabay-Mariani, Laetitia & Paillé, Pascal & Valéau, Patrick, 2023. "The long-term persistence among nascent entrepreneurs: An fsQCA analysis," Journal of Business Research, Elsevier, vol. 156(C).
    3. Uwe Cantner & Philip Doerr & Maximilian Goethner & Matthias Huegel & Martin Kalthaus, 2024. "A procedural perspective on academic spin-off creation: the changing relative importance of the academic and the commercial sphere," Small Business Economics, Springer, vol. 62(4), pages 1555-1590, April.
    4. Yan, Jiaju & Boss, Alan D. & Reger, Rhonda K., 2023. "The unrelenting entrepreneur: Taking stock of research on entrepreneurial persistence and related constructs," Journal of Business Venturing Insights, Elsevier, vol. 20(C).
    5. Ahmad Raza Bilal & Pierfelice Rosato & Raffaele Campo & Rossella Leopizzi, 2023. "Women empowerment and entrepreneurial intention: A pathway to achieve sustainable development goal (SDG‐5)," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1389-1405, May.
    6. Marco Caliendo & Alexander S. Kritikos & Daniel Rodríguez & Claudia Stier, 2023. "Self-efficacy and entrepreneurial performance of start-ups," Small Business Economics, Springer, vol. 61(3), pages 1027-1051, October.
    7. Maribel Guerrero & Grace S. Walsh, 2024. "How do entrepreneurs build a resilient and persistent identity? Re-examining the financial crisis impact," International Entrepreneurship and Management Journal, Springer, vol. 20(3), pages 1963-1997, September.
    8. Inés Berniell & Lucila Berniell & Dolores de la Mata & María Edo & Yarine Fawaz & Matilde P. Machado & Mariana Marchionni, 2020. "Motherhood and the Allocation of Talent," CEDLAS, Working Papers 0270, CEDLAS, Universidad Nacional de La Plata.
    9. Nuno António & Hugo Pinto, 2022. "Youth Associations and Entrepreneurship: Insights from Case Studies in Portugal," Merits, MDPI, vol. 2(2), pages 1-19, April.
    10. Lin, Nidthida & Wilden, Ralf & Chirico, Francesco & Ghasrodashti, Elahe & DeTienne, Dawn R., 2022. "Persist or let it go: Do rational entrepreneurs make decisions rationally?," Journal of Business Venturing, Elsevier, vol. 37(4).

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    More about this item

    Keywords

    Entrepreneurship; Persistence; Start-ups; Survival;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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