Small Business Economics

, Volume 52, Issue 1, pp 47–65 | Cite as

Renascence after post-mortem: the choice of accelerated repeat entrepreneurship

  • Maribel Guerrero
  • Iñaki Peña-LegazkueEmail author


We develop and empirically test why, when, and how entrepreneurs choose to rapidly re-engage in firm creation after business closure. We draw on the notions of human capital, knowledge spillovers, and business cycles to build a comprehensive framework aimed at better understanding the choice of accelerated repeat entrepreneurship. The tests performed using data from multiple countries and several periods consistently reveal that after business termination, the likelihood of rapidly re-engaging in entrepreneurship is positively influenced by the experiential capital of entrepreneurs (i.e., skills developed from launching new businesses and innovative products in previous organizations). Furthermore, this positive relationship is clearly heightened by favorable business cycle and spatial context conditions. Results are expected to shed some light on the circumstances under which repeat entrepreneurship rapidly occurs before second opportunities vanish. A timely action by policy makers is recommended to promote repeat entrepreneurship.


Repeat entrepreneurship Experiential capital Human capital Knowledge spillover theory of entrepreneurship (KSTE) Business cycles Serial entrepreneurs 

JEL classifications

M13 L26 L53 



The authors are grateful for the financial support granted by the Department of Education of the Basque Government and the constructive comments by Maria Minniti and two anonymous reviewers.


  1. Acs, Z. J., Braunerhjelm, P., Audretsch, D. B., & Carlsson, B. (2009). The knowledge spillover theory of entrepreneurship. Small Business Economics, 32(1), 15–30.Google Scholar
  2. Acs, Z. J., Audretsch, D. B., & Lehmann, E. E. (2013). The knowledge spillover theory of entrepreneurship. Small Business Economics, 41(4), 757–774.Google Scholar
  3. Agarwal, R., Audretsch, D., & Sarkar, M. B. (2007). The process of creative construction: knowledge spillovers, entrepreneurship, and economic growth. Strategic Entrepreneurship Journal, 1(3–4), 263–286.Google Scholar
  4. Amaral, A. M., Baptista, R., & Lima, F. (2011). Serial entrepreneurship: impact of human capital on time to re-entry. Small Business Economics, 37(1), 1–21.Google Scholar
  5. Antoncic, B., & Hisrich, R. (2001). Intrapreneurship: construct refinement and cross-cultural validation. Journal of Business Venturing, 16(5), 495–527.Google Scholar
  6. Arenius, P., & Minniti, M. (2005). Perceptual variables and nascent entrepreneurship. Small Business Economics, 24(3), 233–247.Google Scholar
  7. Audretsch, D. and Monsen, E. (2008). Entrepreneurship capital: a regional, organizational, team and individual phenomenon, in International handbook of entrepreneurship and HRM, p. 47-70, Edward Edgar Publishing Inc.Google Scholar
  8. Autio, E., & Acs, Z. (2010). Intellectual property protection and the formation of entrepreneurial growth aspirations. Strategic Entrepreneurship Journal, 4(3), 234–251.Google Scholar
  9. Autio, E., Kenney, M., Mustar, P., Siegel, D., & Wright, M. (2014). Entrepreneurial innovation: the importance of context. Research Policy, 43(7), 1097–1108.Google Scholar
  10. Baum, C. F. (2006). An introduction to modern econometrics using Stata. College Station: Stata Press.Google Scholar
  11. Baumol, W. J. (1990). Entrepreneurship: productive, unproductive, and destructive. Journal of Political Economy, 98(5, Part 1), 893–921.Google Scholar
  12. Block, J., & Sandner, P. (2009). Necessity and opportunity entrepreneurs and their duration in self-employment: evidence from German micro data. Journal of Industry, Competition and Trade, 9(2), 117–137.Google Scholar
  13. Bosma, N. (2013). The Global Entrepreneurship Monitor (GEM) and its impact on entrepreneurship research. Foundations and Trends in Entrepreneurship, 9(2), 143–248.Google Scholar
  14. Bosma, N., Stam, E., & Wennekers, A. R. M. (2010). Intrapreneurship: an international study. In EIM research report H201005. Zoetermeer: EIM.Google Scholar
  15. Brockhaus, R. H. (1980). Risk taking propensity of entrepreneurs. Academy of Management Journal, 23(3), 509–520.Google Scholar
  16. Busenitz, L. W., Plummer, L. A., Klotz, A. C., Shahzad, A., & Rhoads, K. (2014). Entrepreneurship research (1985–2009) and the emergence of opportunities. Entrepreneurship Theory and Practice, 38(5), 981–1000.Google Scholar
  17. Campbell, B. A., Ganco, M., Franco, A. M., & Agarwal, R. (2012). Who leaves, where to, and why worry? Employee mobility, entrepreneurship and effects on source firm performance. Strategic Management Journal, 33(1), 65–87.Google Scholar
  18. Carree, M., Van Stel, A., Thurik, R., & Wennekers, S. (2002). Economic development and business ownership: an analysis using data of 23 OECD countries in the period 1976–1996. Small Business Economics, 19(3), 271–290.Google Scholar
  19. Chen, J. (2013). Selection and serial entrepreneurs. Journal of Economics and Management Strategy, 22(2), 281–311.Google Scholar
  20. Covin, J. G., & Slevin, D. P. (1989). Strategic management of small firms in hostile and benign environments. Strategic Management Journal, 10(1), 75–87.Google Scholar
  21. Cramer, J. S. (2007). Robustness of logit analysis: unobserved heterogeneity and mis-specified disturbances. Oxford Bulletin of Economics and Statistics, 69(4), 545–555.Google Scholar
  22. Davidsson, P., & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18(3), 301–331.Google Scholar
  23. Davidsson, P., & Wiklund, J. (2001). Levels of analysis in entrepreneurship research: current research practice and suggestions for the future. Entrepreneurship: Theory and Practice, 25(4), 81–100.Google Scholar
  24. DeTienne, D. R., McKelvie, A., & Chandler, G. N. (2015). Making sense of entrepreneurial exit strategies: a typology and test. Journal of Business Venturing, 30(2), 255–272.Google Scholar
  25. Dobrev, S. D., & Barnett, W. P. (2005). Organizational roles and transition to entrepreneurship. Academy of Management Journal, 48(3), 433–449.Google Scholar
  26. Douglas, E. J., & Shepherd, D. A. (2002). Self-employment as a career choice: attitudes, entrepreneurial intentions, and utility maximization. Entrepreneurship: Theory and Practice, 26(3), 81–90.Google Scholar
  27. Evans, D. S., & Leighton, L. S. (1990). Small business formation by unemployed and employed workers. Small Business Economics, 2(4), 319–330.Google Scholar
  28. Fairlie, R., & Fossen, F. (2011). The two components of business creation: opportunity versus necessity entrepreneurship. Working Paper.Google Scholar
  29. Ghio, N., Guerini, M., Lehmann, E. E., & Rossi-Lamastra, C. (2015). The emergence of the knowledge spillover theory of entrepreneurship. Small Business Economics, 44(1), 1–18.Google Scholar
  30. González-Pernía, J. L., Jung, A., & Peña, I. (2015a). Innovation-driven entrepreneurship in developing economies. Entrepreneurship and Regional Development, 27(9–10), 555–573.Google Scholar
  31. González-Pernía, J. L., Parrilli, M. D., & Peña-Legazkue, I. (2015b). STI-DUI learning modes, firm-university collaboration and innovation. Journal of Technology Transfer, 40(3), 475–492.Google Scholar
  32. Greene, W. H. (2003). Econometric analysis. New York: Prentice Hall.Google Scholar
  33. Guerrero, M., & Peña-Legazkue, I. (2013). The effect of intrapreneurial experience on corporate venturing: evidence from developed economies. International Entrepreneurship and Management Journal, 9(3), 397–416.Google Scholar
  34. Halevy, Y. (2008). Strotz meets Allais: diminishing impatience and the certainty effect. American Economic Review, 98(3), 1145–1162.Google Scholar
  35. Hessels, J., Grilo, I., Thurik, R., & van der Zwan, P. (2011). Entrepreneurial exit and entrepreneurial engagement. Journal of Evolutionary Economics, 21(3), 447–471.Google Scholar
  36. Hosmer, D., & Lemeshow, S. (1989). Applied logistic regression. New York: John Wiley and Sons.Google Scholar
  37. Hyytinen, A., & Ilmakunnas, P. (2007a). Entrepreneurial aspirations: another form of job search? Small Business Economics, 29(1–2), 63–80.Google Scholar
  38. Hyytinen, A., & Ilmakunnas, P. (2007b). What distinguishes a serial entrepreneur? Industrial and Corporate Change, 16(5), 793–821.Google Scholar
  39. Ireland, R. D., Covin, J. G., & Kuratko, D. F. (2009). Conceptualizing corporate entrepreneurship strategy. Entrepreneurship: Theory and Practice, 33(1), 19–46.Google Scholar
  40. Katz, J. A. (1994). Modelling entrepreneurial career progressions: concepts and considerations. Entrepreneurship: Theory and Practice, 19(2), 23–39.Google Scholar
  41. Kautonen, T., Down, S., & Minniti, M. (2014). Ageing and entrepreneurial preferences. Small Business Economics, 42(3), 579–594.Google Scholar
  42. Koellinger, P. D., & Thurik, A. R. (2009). Entrepreneurship and the business cycle. Tinbergen Institute Discussion Paper, No. 09-032/3.Google Scholar
  43. Lévesque, M., & Minniti, M. (2006). The effect of aging on entrepreneurial behavior. Journal of Business Venturing, 21(2), 177–194.Google Scholar
  44. Lumpkin, G. T., & Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Academy of Management Review, 21(1), 135–172.Google Scholar
  45. Mc Grath, R. G. (1999). Falling forward: real options reasoning and entrepreneurial failure. Academy of Management Review, 24(1), 13–30.Google Scholar
  46. Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770–791.Google Scholar
  47. Parker, S. C. (2011). Intrapreneurship or entrepreneurship? Journal of Business Venturing, 26(1), 19–34.Google Scholar
  48. Parker, S. C. (2012). Theories of entrepreneurship, innovation and the business cycle. Journal of Economic Surveys, 26(3), 377–394.Google Scholar
  49. Parker, S. C. (2013). Do serial entrepreneurs run successively better-performing businesses? Journal of Business Venturing, 28(5), 652–666.Google Scholar
  50. Parker, S. C., Congregado, E., & Golpe, A. A. (2012). Is entrepreneurship a leading or lagging indicator of the business cycle? Evidence from UK self-employment data. International Small Business Journal, 30(7), 736–753.Google Scholar
  51. Reynolds, P., Bosma, N., Autio, E., Hunt, S., De Bono, N., Servais, I., et al. (2005). Global entrepreneurship monitor: data collection design and implementation 1998–2003. Small Business Economics, 24(3), 205–231.Google Scholar
  52. Sarasvathy, S. D. (2001). Causation and effectuation: toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26(2), 243–263.Google Scholar
  53. Sarasvathy, S. D., Menon, A. R., & Kuechle, G. (2013). Failing firms and successful entrepreneurs: serial entrepreneurship as a temporal portfolio. Small Business Economics, 40(2), 417–434.Google Scholar
  54. Shepherd, D. A., Covin, J. G., & Kuratko, D. F. (2009). Project failure from corporate entrepreneurship: managing the grief process. Journal of Business Venturing, 24(6), 588–600.Google Scholar
  55. Sørensen, J. B., & Fassiotto, M. A. (2011). Organizations as fonts of entrepreneurship. Organization Science, 22(5), 1322–1331.Google Scholar
  56. Sørensen, J. B., & Sharkey, A. J. (2014). Entrepreneurship as a mobility process. American Sociological Review, 79(2), 328–349.Google Scholar
  57. Stam, E., Audretsch, D., & Meijaard, J. (2008). Renascent entrepreneurship. Journal of Evolutionary Economics, 18(3–4), 493–507.Google Scholar
  58. van Stel, A., & Storey, D. (2004). The link between firm births and job creation: is there a upas tree effect? Regional Studies, 38(8), 893–909.Google Scholar
  59. Thurik, A. R., Carree, M. A., Van Stel, A. J., & Audretsch, D. B. (2008). Does self-employment reduce unemployment? Journal of Business Venturing, 23(6), 673–686.Google Scholar
  60. Ucbasaran, D., Alsos, G. A., Westhead, P., & Wright, M. (2008). Habitual entrepreneurs. Foundations and Trends in Entrepreneurship, 4(4), 309–450.Google Scholar
  61. Unger, J., Rauch, A., Frese, M., & Rosenbuch, N. (2011). Human capital and entrepreneurial success: a meta-analytical review. Journal of Business Venturing, 26(3), 341–358.Google Scholar
  62. Weber, E. U., & Milliman, R. A. (1997). Perceived risk attitudes: relating risk perception to risky choice. Management Science, 43(2), 123–144.Google Scholar
  63. Westhead, P., & Wright, M. (1998). Novice, portfolio, and serial founders: are they different? Journal of Business Venturing, 13(3), 173–204.Google Scholar
  64. Wiklund, J., & Shepherd, D. A. (2008). Portfolio entrepreneurship: habitual and novice founders, new entry, and mode of organizing. Entrepreneurship Theory and Practice, 32(4), 701–725.Google Scholar
  65. Wright, M., Robbie, K., & Ennew, C. (1997). Serial entrepreneurs. British Journal of Management, 8(3), 251–268.Google Scholar

Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Newcastle Business SchoolNorthumbria UniversityNewcastle upon TyneUK
  2. 2.Deusto Business SchoolUniversity of DeustoDonostiaSpain

Personalised recommendations