Following recent public and scientific discussions on credit provision for entrepreneurs and credit management policies of banks, this study’s objective is to examine the effect of personal attitudes of bankers on their willingness to consider credit applications from renascent entrepreneurs. Previously, applications from renascent entrepreneurs were automatically rejected. Recently, more and more banks leave the evaluation of these applications to the bankers themselves. In the current study (n = 608) we use an attitudinal perspective to suggest how bankers’ entrepreneurial attitudes, their commitment to credit applications, their perceptions of bankruptcy (in terms of stigmatization and learning opportunities), and their past experience with credit provision to renascent entrepreneurs, influence their willingness to consider new credit applications from renascent entrepreneurs. Overall, results show that individual bankers extensively determine renascent entrepreneurs’ access to financial capital. Implications for banks’ credit provision policy toward renascent entrepreneurs, and for theory, and suggestions for future research are provided in the conclusion and discussion.
This is a preview of subscription content, log in to check access.
Buy single article
Instant access to the full article PDF.
Price includes VAT for USA
Subscribe to journal
Immediate online access to all issues from 2019. Subscription will auto renew annually.
This is the net price. Taxes to be calculated in checkout.
Abdou, H., Pointon, J., & El-Masry, A. (2008). Neural nets versus conventional techniques in credit scoring in Egyptian banking. Expert Systems with Applications, 35(3), 1275–1292.
Aiken, L. S., & West, S. G. (1991). Multiple regression: Testing and interpreting interactions. Thousand Oaks: Sage Publications.
Akhavein, J., Frame, W. S., & White, L. J. (2005). The diffusion of financial innovations: an examination of the adoption of small business credit scoring by large banking organizations. The Journal of Business, 78(2), 577–596.
Antoncic, B., & Hisrich, R. D. (2003). Clarifying the intrapreneurship concept. Journal of Small Business and Enterprise Development, 10(1), 7–24.
Argyris, C. (1985). Strategy, change and defensive routines. Marshfield: Pitman Publishing.
Argyris, C., & Schön, D. (1974). Theory in practice: Increasing professional effectiveness. San Francisco: Jossey-Bass.
Armour, J., & Cumming, D. J. (2008). Bankruptcy Law and entrepreneurship. American Law and Economics Review, 10(2), 303–350.
Åstebro, T., & Bernhardt, I. (2003). Start-up financing, owner characteristics, and survival. Journal of Economics and Business, 55(4), 303–319.
Athreya, K. (2004). Shame as it ever was: stigma and personal bankruptcy. FRB Richmond Economic Quarterly, 90(2), 1–19.
Attewell, P. (1992). Technology diffusion and organizational learning: the case of business computing. Organization Science, 3(1), 1–19.
Banasik, J., Crook, J., & Thomas, L. (2001). Scoring by usage. Journal of the Operational Research Society, 52, 997–1006.
Bandura, A. (1977). Self-efficacy: toward a unifying theory of behavioral change. Psychological Review, 84(2), 191.
Barberis, N., & Thaler, R. (2005). A survey of behavioral finance in advances in behavioral finance, Volume II: Ed.), Barberis, Nicholas and Thaler, Richard, Princeton University Press.
Barrick, M. R. (2005). Yes, personality matters: moving on to more important matters. Human Performance, 18(4), 359–372.
Barron, F. (1955). The disposition toward originality. The Journal of Abnormal and Social Psychology, 51(3), 478.
Bentler, P. M., & Wu, E. J. (1995). EQS for windows user’s guide. CA: Multivariate Software Encino.
Berger, A. N., & Frame, W. S. (2007). Small business credit scoring and credit availability*. Journal of Small Business Management, 45(1), 5–22.
Bettis, R. A. (1982). Risk considerations in modeling corporate strategy. Academy of Management Proceedings, 1, 22–25.
Bhide, A. (1999). Bootstap finance: The art of startup. In W. Sahlman & A. Bhide (Eds.), The Entrepreneurial Venture: Readings Selected (Vol. II, pp. 223–237). Harvard Business Press: Cambridge.
Brown, R. P., & Pinel, E. C. (2003). Stigma on my mind: individual differences in the experience of stereotype threat. Journal of Experimental Social Psychology, 39(6), 626–633.
Burgelman, R. A. (1983). A process model of internal corporate venturing in the diversified major firm. Administrative Science Quarterly, 28(2), 223–244.
Chiu, C., Hong, Y., & Dweck, C. S. (1997). Lay dispositionism and implicit theories of personality. Journal of Personality and Social Psychology, 73(1), 19.
Cohen, J., Cohen, P., West, S. G., & Aiken, L. S. (2003). Applied multiple regression/correlation analysis for the behavioral sciences (Vol. 3). Mahwah: Lawrence Erlbaum Associates.
Crutchfield, R. S. (1962). Conformity and creative thinking. Paper presented at the contemporary approaches to creative thinking. Co: University of Colorado.
Dake, K. (1992). Myths of nature: culture and the social construction of risk. Journal of Social Issues, 48(4), 21–37.
De Bettignies, J.-E., & Brander, J. A. (2007). Financing entrepreneurship: bank finance versus venture capital. Journal of Business Venturing, 22(6), 808–832.
Degryse, H., & Van Cayseele, P. (2000). Relationship lending within a bank-based system: evidence from european small business data. Journal of Financial Intermediation, 9(1), 90–109.
Douglas, M., & Wildavsky, A. B. (1983). Risk and culture: An essay on the selection of technological and environmental dangers. Berkeley: University of California Pr.
Dunham, R. B. (1984). Organizational behavior. Homewood: Irwin.
Efrat, R. (1999). Fresh-start policy in bankruptcy in modern day Israel, the. American Bankruptcy Institute Law Review, 7(2), 555.
European_Commission. (1998). Fostering entrepreneurship in Europe. Brussels: European Commission.
European_Commission, (2007). Overcoming the stigma of business failure—for a second chance policy implementing the Lisbon partnership for growth and jobs. Brussels: Commission of the European Communities.
Evans, M. G. (1985). A Monte Carlo study of the effects of correlated method variance in moderated multiple regression analysis. Organizational Behavior and Human Decision Processes, 36(3), 305–323.
Fan, W., & White, M. J. (2003). Personal bankruptcy and the level of entrepreneurial activity. Journal of Law and Economics, 46(October), 543–567.
Feist, G. J. (1999). Autonomy and independence. Encyclopedia of Creativity, 1, 157–163.
Finucane, M., Alhakami, A., Slovic, P., & Johnson, S. (2000). The affect heuristic in judgments of risks and benefits. Journal of Behavioral Decision Making, 13(1), 1–17.
Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention and behavior: An introduction to theory and research. Reading: Addison-Welsey Publishing.
Folkeringa, M., & Vroonhof, P. (2004). Wordt De Spoeling Dun? Zoetermeer: EIM.
Frame, W. S., Srinivasan, A., & Woosley, L. (2001). The effect of credit scoring on small-business lending. Journal of Money, Credit and Banking, 33(3), 813–825.
Goffman, E. (1963). Stigma: notes on a spoiled identity: Englewood cliffs. NJ: Prentice-Hall.
Gosling, S. D., Rentfrow, P. J., & Swann, W. B., Jr. (2003). A very brief measure of the big-five personality domains. Journal of Research in Personality, 37(6), 504–528.
Grunert, J., & Norden, L. (2011). Soft information matters in SME lending. RSM Insight, 6(2), 10–11.
Güttinger, V. A. (1984). Risicoperceptie en riskant gedrag in de arbeidssituatie: een onderzoek bij lassers. TNO: Organisatie voor Toegepast Natuurwetenschappelijk Onderzoek.
Harman, H. H. (1967). Modernfactoranalysis (2nd ed.). Chicago: University of Chicago Press.
Irwin, D., & Scott, J. M. (2010). Barriers faced by SMEs in raising bank finance. International Journal of Entrepreneurial Behaviour & Research, 16(3), 245–259.
Isen, A. M., & Baron, R. A. (1991). Positive affect as a factor in organizational-behavior. Research in Organizational Behavior, 13, 1–53.
Jones, E., Farina, A., Hastorf, A. H., & French, R. (1984). Social stigma: The psychology of marked relationships. New York: WH Freeman.
Jose, PE. 2013. ModGraph-I: A programme to compute cell means for the graphical display of moderational analyses: (Version Internet version 3.0). Wellington, New Zealand. : Victoria University of Wellington Retrieved from http://pavlov.psyc.vuw.ac.nz/paul-jose/modgraph/
Kasperson, R., Jhaveri, N., & Kasperson, J. X. (2001). Stigma and the social amplification of risk: Toward a framework of analysis. In J. Flynn, P. Slovic, & H. Kunreuther (Eds.), Risk, media, and stigma: Understanding public challenges to modern science and technology (pp. 9–27). London: Sterling: Earthscan.
Kegan, R., & Lahey, L. L. (2001). The real reason people won’t change. Harvard Business Review, 79(10), 85–92.
Kelley, D., Neck, H., O'Connor, G. C, & Paulson, A. (2005). Corporate entrepreneurship through radical innovation: key organization and initiative level mechanisms. In T. Elfring (Ed.), Corporate entrepreneurship and venturing (pp. 23–48). New York: Springer.
Klemann, M. (2011). Failliet, nog een kans op krediet? Amsterdam: Master of Science, VU University.
Kraus, S. J. (1995). Attitudes and the prediction of behavior: a meta-analysis of the empirical literature. Personality and Social Psychology Bulletin, 21(1), 58–75.
Krueger, N. F., & Brazeal, D. V. (1994). Entrepreneurial potential and potential entrepreneurs. Entrepreneurship Theory and Practice, 18, 91.
Krueger, N. F., Jr., Reilly, M. D., & Carsrud, A. L. (2000). Competing models of entrepreneurial intentions. Journal of Business Venturing, 15(5), 411–432.
Landier, A. (2002). Entrepreneurship and the Stigma of Failure. Unpublished thesis. Mimeo, MIT.
Learned, K. E. (1992). What happened before the organization? a model of organization formation. Entrepreneurship Theory and Practice, 17, 39.
Lee, S.-H., Peng, M. W., & Barney, J. B. (2007). Bankruptcy law and entrepreneurship development: a real options perspective. Academy of Management Review, 32(1), 257–272.
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.
Madsen, S. R., Miller, D., & John, C. R. (2005). Readiness for organizational change: do organizational commitment and social relationships in the workplace make a difference? Human Resource Development Quarterly, 16(2), 213–234.
Mair, J. (2008). Entrepreneurial behavior in a large traditional firm: exploring key drivers. In T. Elfring (Ed.), Corporate entrepreneurship and venturing (pp. 49–72). New York: Springer.
March, J. G., & Shapira, Z. (1987). Managerial perspectives on risk and risk taking. Management Science, 33(11), 1404–1418.
McClelland, G. H., & Judd, C. M. (1993). Statistical difficulties of detecting interactions and moderator effects. Psychological Bulletin, 114(2), 376.
McGrath, R. G. (1999). Falling forward: real options reasoning and entrepreneurial failure. Academy of Management review, 24(1), 13–30.
Metzger, G. 2006. Afterlife-who takes heart for restart? ZEW-Centre for European Economic Research Discussion Paper(06–038).
Metzger, G, & Niefert, M. 2006. Restart-performance and the returns of previous self-employment. Discussion Papers on Entrepreneurship, Growth and Public Policy (1806), 2006–2018.
Meyer, J. P. (2009). Commitment in a changing world of work. In H. J. Klein, T. Becker, & J. P. Meyer (Eds.), Commitment in organizations: Accumulated wisdom and new directions (pp. 37–68). Florence: Routledge/Taylor and Francis Group.
Nasution, H. N., Mavondo, F. T., Matanda, M. J., & Ndubisi, N. O. (2011). Entrepreneurship: its relationship with market orientation and learning orientation and as antecedents to innovation and customer value. Industrial Marketing Management, 40(3), 336–345.
Oldfield, GS, & Santomero, AM. 1995. The place of risk management in financial institutions. Philadelphia: Wharton School, University of Pennsylvania.
Paetzold, R. L., Dipboye, R. L., & Elsbach, K. D. (2008). A new look at stigmatization in and of organizations. Academy of Management Review, 33(1), 186–193.
Podsakoff, P. M., MacKenzie, S. B., Lee, J.-Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879.
Politis, D., & Gabrielsson, J. (2009). Entrepreneurs’ Attitudes towards failure: an experiential learning approach. International Journal of Entrepreneurial Behaviour & Research, 15(4), 364–383.
Rauch, A., & Frese, M. (2007). Let’s put the person back into entrepreneurship research: a meta-analysis on the relationship between business owners’ personality traits, business creation, and success. European Journal of Work and Organizational Psychology, 16(4), 353–385.
Rehoorn, W. (2006). April 19th. Abn Amro Wil Stigma Op Faillissementen. Telegraaf: Doorbreken.
Santomero, A. M. (1997). Commercial bank risk management: an analysis of the process. Journal of Financial Services Research, 12(2–3), 83–115.
Sarasvathy, D., Simon, H. A., & Lave, L. (1998). Perceiving and managing business risks: differences between entrepreneurs and bankers. Journal of Economic Behavior & Organization, 33(2), 207–225.
Saxenian, A. (1996). Regional advantage: Culture and competition in silicon valley and route 128. Cambridge: Harvard University Press.
Schuman, H., & Harding, J. (1963). Sympathetic identification with the underdog. Public Opinion Quarterly, 27(2), 230–241.
Semadeni, M., Cannella, A. A., Jr., Fraser, D. R., & Lee, D. S. (2008). Fight or flight: managing stigma in executive careers. Strategic Management Journal, 29(5), 557–567.
Shane, S. (2000). Prior knowledge and the discovery of entrepreneurial opportunities. Organization Science, 11(4), 448–469.
Shepherd, D. A. (2003). Learning from business failure: propositions of grief recovery for the self-employed. Academy of Management Review, 28(2), 318–328.
Shepherd, D. A. (2004). Educating entrepreneurship students about emotion and learning from failure. Academy of Management Learning & Education, 3(3), 274–287.
Shepherd, D. A., Douglas, E. J., & Shanley, M. (2000). New venture survival: ignorance, external shocks, and risk reduction strategies. Journal of Business Venturing, 15(5), 393–410.
Shepherd, D. A., Wiklund, J., & Haynie, J. M. (2009). Moving forward: balancing the financial and emotional costs of business failure. Journal of Business Venturing, 24(2), 134–148.
Simmons, S., & Wiklund, J. (2011). Stigma and entrepreneurial failure: Implications for Entrepreneurs’ career choices. Working paper: Syracuse University.
Sitkin, S. B. (1992). Learning through failure-the strategy of small losses. Research in Organizational Behavior, 14, 231–266.
Sitkin, S. B., & Pablo, A. L. (1992). Reconceptualizing the determinants of risk behavior. Academy of Management Review, 17(1), 9–38.
Sitkin, S. B., & Weingart, L. R. (1995). Determinants of risky decision-making behavior: a test of the mediating role of risk perceptions and propensity. Academy of Management Journal, 38(6), 1573–1592.
Slovic, P., Finucane, M. L., Peters, E., & MacGregor, D. G. (2007). The affect heuristic. European Journal of Operational Research, 177(3), 1333–1352.
Stam, E., Audretsch, D., & Meijaard, J. (2005). Entrepreneurial intentions subsequent to firm exit discussion papers on entrepreneurship, growth and public policy. Jena: Max Planck Institute.
Stull, M. (2005). Intrapreneurship in nonprofit organizations: Examining the factors that facilitate entrepreneurial behaviour among employees. Cleveland: Case Western Reserve University.
Sutton, R. I., & Callahan, A. L. (1987). The stigma of bankruptcy: spoiled organizational image and its management. Academy of Management Journal, 30(3), 405–436.
Thaler, R. H., & Johnson, E. J. (1990). Gambling with the house money and trying to break even: the effects of prior outcomes on risky choice. Management Science, 36(6), 643–660.
Thomas, L. C, Edelman, D. B., & Crook, J. N. (2002). Credit scoring and its applications -Monographs on Mathematical Modeling and Computation (Vol. 6) Philadelphia: Siam Publishing.
Timmons, J., Smollen, L., & Dingee, A. (1999). New venture creation. Irwin, Homewood: Richard D.
Tsoumbris, P., & Xenikou, A. (2010). Commitment profiles: the configural effect of the forms and foci of commitment on work outcomes. Journal of Vocational Behavior, 77(3), 401–411. doi:10.1016/j.jvb.2010.07.006.
Vandello, J., Goldschmied, N., & Richards, D. (2007). The appeal of the underdog. Personality and Social Psychology Bulletin, 33, 1603–1616.
Wakkee, I. 2013. Enduring effects or business as usual? Entrepreneurship after bankruptcy? Working Paper. VU University. Amsterdam.
Wakkee, I., Elfring, T., & Monaghan, S. (2010). Creating entrepreneurial employees in traditional service sectors the role of coaching and self-efficacy. International Entrepreneurship and Management Journal, 6(1), 1–21. doi:10.1007/s11365-008-0078-z.
Wiesenfeld, B. M., Wurthmann, K. A., & Hambrick, D. C. (2008). The stigmatization and devaluation of elites associated with corporate failures: a process model. Academy of Management Review, 33(1), 231–251.
The authors want to thank Marc Kuipers for his role in gaining access to and collecting data in the bank as well as the manager's of this bank for allowing and facilitating data collection.
About this article
Cite this article
Wakkee, I., Sleebos, E. Giving second chances: the impact of personal attitudes of bankers on their willingness to provide credit to renascent entrepreneurs. Int Entrep Manag J 11, 719–742 (2015). https://doi.org/10.1007/s11365-014-0300-0
- Credit application
- Failure and recovery