Skip to main content

Gender gaps and reentry into entrepreneurial ecosystems after business failure

Small Business Economics volume 53, pages 517–531 (2019)Cite this article

Abstract

Despite the significant role played by serial entrepreneurs in the entrepreneurial process, we know little about group differences in reentry decisions after business failure. Using an ecosystem framework and stigma theory, we investigate the variance in gender gaps related to the reentry decisions of 8171 entrepreneurs from 35 countries who experienced business failures. We find evidence of persisting gender gaps that vary across ecosystem framework conditions of public stigma of business failure and public fear of business failure. Our findings shed new light on ecosystem inefficiencies that arise from multiple interactions between entrepreneurs and institutions.

This is a preview of subscription content, access via your institution.

Access options

Buy single article

Instant access to the full article PDF.

USD 39.95

Price includes VAT (USA)
Tax calculation will be finalised during checkout.

Fig. 1

Notes

  1. www.gemconsortium.com

  2. www.doingbusiness.org/methodology

  3. ec.europa.eu/public_opinion/index_en.htm

  4. We reran our main effects Model 3 in Table 2 without ‘other reasons or undisclosed’ cases and obtained similar results.

  5. Austria, Belgium, Brazil, China, Croatia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, India, Ireland, Israel, Italy, Japan, Korea, Latvia, Lithuania, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom, United States

  6. See Appendix for sample and key variable statistics by country.

References

  • Acs, Z. J., Autio, E., & Szerb, L. (2014). National systems of entrepreneurship: measurement issues and policy implications. Research Policy, 43, 476–494.

    Article  Google Scholar 

  • Aguinis, H., Gottfredson, R. K., & Culpepper, S. A. (2013). Best-practice recommendations for estimating cross-level interaction effects using multilevel modeling. Journal of Management, 39(6), 1490–1528.

    Article  Google Scholar 

  • Ahl, H., & Nelson, T. (2010). Moving forward: institutional perspectives on gender and entrepreneurship. International Journal of Gender and Entrepreneurship, 2(1), 5–9.

    Article  Google Scholar 

  • Arditti, J. (2005). Families and incarceration: an ecological approach. Families in Society: The Journal of Contemporary Social Services, 86(2), 251–260.

    Article  Google Scholar 

  • Armour, J., & Cumming, D. (2008). Bankruptcy law and entrepreneurship. American Law and Economics Review, 10(2), 303–350.

    Article  Google Scholar 

  • Autio, E., Pathak, S., & Wennberg, K. (2013). Consequences of cultural practices for entrepreneurial behaviors. Journal of International Business Studies, 44(4), 334–362.

    Article  Google Scholar 

  • Barbulescu, R., & Bidwell, M. (2013). Do women choose different jobs from men? Mechanisms of application segregation in the market for managerial workers. Organization Science, 24(3), 737–756.

    Article  Google Scholar 

  • Bates, T. (2002). Restricted access to markets characterizes women-owned businesses. Journal of Business Venturing, 17(4), 313–324.

    Article  Google Scholar 

  • Berger, E. S., & Kuckertz, A. (2016). Female entrepreneurship in startup ecosystems worldwide. Journal of Business Research, 69(11), 5163–5168.

    Article  Google Scholar 

  • Bönte, W., & Piegeler, M. (2013). Gender gap in latent and nascent entrepreneurship: driven by competitiveness. Small Business Economics, 41(4), 961–987.

    Article  Google Scholar 

  • Bosma, N. (2013). The Global Entrepreneurship Monitor (GEM) and its impact on entrepreneurship research. Foundations and Trends in Entrepreneurship, 9(2).

  • Bronfenbrenner, U., & Morris, P. (1998). The ecology of developmental processes. In R. M. Lerner (Ed.), Handbook of child psychology, theoretical models of human development (Vol. 1, 5th ed., pp. 993–1028). New York: Wiley.

    Google Scholar 

  • Brush, C. G., Carter, N. M., Gatewood, E. J., Greene, P. G., & Hart, M. M. (2004). Clearing the hurdles: Women building growth businesses. Englewood Cliffs: Prentice Hall.

    Google Scholar 

  • Cacciotti, G., Hayton, J., Mitchell, R., & Giazizoglu, A. (2016). A reconceptualization of fear of failure in entrepreneurship. Journal of Business Venturing, 31(3), 302–325.

    Article  Google Scholar 

  • Cardon, M. S., Stevens, C. E., & Potter, D. R. (2011). Misfortunes or mistakes? Cultural sensemaking of entrepreneurial failure. Journal of Business Venturing, 26(1), 79–92.

    Article  Google Scholar 

  • Coleman, S. (2000). Access to capital and terms of credit: a comparison of men- and women-owned small businesses. Journal of Small Business Management, 38(3), 37.

    Google Scholar 

  • Corrigan, P. W., & Watson, A. C. (2002). The paradox of self-stigma and mental illness. Clinical Psychology: Science and Practice, 9(1), 35–53.

    Google Scholar 

  • Crocker, J., & Major, B. (1989). Social stigma and self-esteem: the self-protective properties of stigma. Psychological Review, 96(4), 608.

    Article  Google Scholar 

  • Davidsson, P., & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18(3), 301–331.

    Article  Google Scholar 

  • Davis, A. E., & Shaver, K. G. (2012). Understanding gender variations in business growth intentions across the life course. Entrepreneurship Theory and Practice, 36(3), 495–512.

    Article  Google Scholar 

  • de Bruin, A., Brush, C. G., & Welter, F. (2007). Advancing a framework for coherent research on women’s entrepreneurship. Entrepreneurship Theory and Practice, 31(3), 323–339.

    Article  Google Scholar 

  • Djankov, S., Hart, O., McLiesh, C., & Shleifer, A. (2008). Debt enforcement around the world. Journal of Political Economy, 116(6), 1105–1149.

    Article  Google Scholar 

  • Eddelston, K. A., & Powell, G. N. (2008). The role of gender identity in explaining sex differences in business owners’ career satisfier preferences. Journal of Business Venturing, 23, 244–256.

    Article  Google Scholar 

  • EOS Gallup Europe (2013). Flash Eurobarometer, No. 354. Entrepreneurship in the EU and beyond. Brussels: Eurostat.

  • EOS Gallup Europe (2007). Flash Eurobarometer No. 192. Entrepreneurship survey of the EU 25. Brussels: Eurostat.

  • EOS Gallup Europe. (2010). Flash Eurobarometer No. 283. Entrepreneurship in the EU and beyond. Brussels: Eurostat.

    Google Scholar 

  • Fairlie, R., & Robb, A. (2009). Gender differences in business performance: evidence from the characteristics of business owners survey. Small Business Economics, 33, 375–395.

    Article  Google Scholar 

  • Fischer, E. M., Reuber, A. R., & Dyke, L. S. (1993). A theoretical overview and extension of research on sex, gender, and entrepreneurship. Journal of Business Venturing, 8(2), 151–168.

    Article  Google Scholar 

  • Goffman, E. (1963). Stigma: Notes on the management of spoiled identity. Englewood Cliffs: Prentice-Hall.

    Google Scholar 

  • Guo, G., & Zhao, H. (2000). Multilevel modeling for binary data. Annual Review of Sociology, 26, 441–462.

    Article  Google Scholar 

  • Gupta, V. K., Goktan, A. B., & Gunay, G. (2014). Gender differences in evaluation of new business opportunity: a stereotype threat perspective. Journal of Business Venturing, 29(2), 273–288.

    Article  Google Scholar 

  • Hechavarría, D. M., Terjesen, S. A., Ingram, A. E., Renko, M., Justo, R., & Elam, A. (2016). Taking care of business: the impact of culture and gender on entrepreneurs’ blended value creation goals. Small Business Economics, 1–33.

  • Hessels, J., Grilo, I., Thurik, R., & Van der Zwan, P. (2011). Entrepreneurial exit and entrepreneurial engagement. Journal of Evolutionary Economics, 21(3), 447–471.

    Article  Google Scholar 

  • Hofstede, G., Hofstede, G. J., & Minkov, M. (2010). Cultures and organizations: Software of the mind. New York: McGraw-Hill.

    Google Scholar 

  • Hsu, H., Simmons, S. A., & McKelvie, A. (2014). What matters, matters differently: a conjoint analysis of the decision policies of angel and venture capital investors. Venture Capital, 16(1), 1–25.

    Article  Google Scholar 

  • Hughes, K. D., Jennings, J. E., Brush, C., Carter, S., & Welter, F. (2012). Extending women’s entrepreneurship research in new directions. Entrepreneurship Theory and Practice, 36(3), 429–442.

    Article  Google Scholar 

  • Isenberg, D. (2011). The entrepreneurship ecosystem strategy as a new paradigm for economic policy: Principles for cultivating entrepreneurship. Institute of International European Affairs, Dublin.

  • Jenkins, A. S., Wiklund, J., & Brundin, E. (2014). Individual responses to firm failure: appraisals, grief, and the influence of prior failure experience. Journal of Business Venturing, 29(1), 17–33.

    Article  Google Scholar 

  • Jennings, J. E., & Brush, C. G. (2013). Research on women entrepreneurs: challenges to (and from) the broader entrepreneurship literature? The Academy of Management Annals, 7(1), 663–715.

    Article  Google Scholar 

  • Kalnins, A., & Williams, M. (2014). When do female-owned businesses out-survive male-owned businesses? A disaggregated approach by industry and geography. Journal of Business Venturing, 29(6), 822–835.

    Article  Google Scholar 

  • Kelley, D. J., Brush, C., Greene, P., Herrington, M., Ali, A., & Kew, P. (2015). Global Entrepreneurship Monitor 2015 Women’s Entrepreneurship Special Report. London: Global Entrepreneurship Research Association.

  • Klyver, K., Nielsen, S. L., & Evald, M. R. (2013). Women’s self-employment: an act of institutional (dis)integration? A multilevel, cross-country study. Journal of Business Venturing, 28(4), 474–488.

    Article  Google Scholar 

  • Koellinger, P., Minniti, M., & Schade, C. (2013). Gender differences in entrepreneurial propensity. Oxford Bulletin of Economics and Statistics, 75(2), 213–234.

    Article  Google Scholar 

  • Lebel, S., & Devins, G. M. (2008). Stigma in cancer patients whose behavior may have contributed to their disease. Future Oncology, 4(5), 717–733.

    Article  Google Scholar 

  • Lee, S. H., Yamakawa, Y., Peng, M. W., & Barney, J. B. (2011). How do bankruptcy laws affect entrepreneurship development around the world? Journal of Business Venturing, 26(5), 505–520.

    Article  Google Scholar 

  • Levie, J., & Hart, M. (2011). Global entrepreneurship monitor United Kingdom 2009 monitoring report. Birmingham, UK: Aston Business School.

  • Mantere, S., Aula, P., Schildt, H., & Vaara, E. (2013). Narrative attributions of entrepreneurial failure. Journal of Business Venturing, 28, 459–473.

    Article  Google Scholar 

  • Marlow, S., & McAdam, M. (2013). Gender and entrepreneurship: advancing debate and challenging myths: exploring the mystery of the under-performing female entrepreneur. International Journal of Entrepreneurship Behavioral Research, 19(1), 114–124.

    Article  Google Scholar 

  • Marlow, S., Carter, S., & Shaw, E. (2008). Constructing female entrepreneurship policy in the UK: is the US a relevant benchmark? Environment and Planning C: Government and Policy, 26(2), 335–351.

    Article  Google Scholar 

  • Minniti, M., & Bygrave, W. (2001). A dynamic model of entrepreneurial learning. Entrepreneurship: Theory and Practice, 25(3), 5–5.

    Google Scholar 

  • Mittal, D., Sullivan, G., Chekuri, L., Allee, E., & Corrigan, P. W. (2012). Empirical studies of self-stigma reduction strategies: a critical review of the literature. Psychiatric Services, 63(10), 974–981.

    Article  Google Scholar 

  • Neu, D., & Wright, M. (1992). Bank failures, stigma management, and the accounting establishment. Accounting, Organizations, and Society, 17, 645–665.

    Article  Google Scholar 

  • OECD/European Union. (2015). Regional Ecosystem Scoreboard, European Cluster Observatory.

  • Phillips, D. J., & Zuckerman, E. W. (2001). Middle-status conformity: theoretical restatement and empirical demonstration in two markets. American Journal of Sociology, 107(2), 379–429.

    Article  Google Scholar 

  • Rabe-Hesketh, S., & Skrondal, A. (2008). Multilevel and longitudinal modeling using Stata. College Station: Stata Press.

    Google Scholar 

  • Raudenbush, S. W., & Bryk, A. S. (2002). Hierarchical linear models. Thousand Oaks: Sage.

    Google Scholar 

  • Reynolds, P. D., Bosma, N., Autio, E., Hunt, S., De Bono, N., et al. (2005). Global entrepreneurship monitor: data collection design and implementation 1998–2003. Small Business Economics, 24, 205–231.

    Article  Google Scholar 

  • Runyan, R. C., Huddleston, P., & Swinney, J. (2006). Entrepreneurial orientation and social capital as small firm strategies: a study of gender differences from a resource-based view. International Entrepreneurship and Management Journal, 2(4), 455–477.

    Article  Google Scholar 

  • Saxenian, A. (1994). Inside-out: regional networks and industrial adaptation in Silicon Valley and Route 128. Cityscape: A Journal of Policy Development and Research, 2(2), 41–60.

    Google Scholar 

  • Scott, J. (1986). Gender: a useful category of historical analysis. American Historical Review, 91, 1053–1075.

    Article  Google Scholar 

  • Shabbir, A., & Di Gregorio, S. (1996). An examination of the relationship between women’s personal goals and structural factors influencing their decision to start a business: the case of Pakistan. Journal of Business Venturing, 11(6), 507–529.

    Article  Google Scholar 

  • 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.

    Article  Google Scholar 

  • Shinnar, R. S., Giacomin, O., & Janssen, F. (2012). Intentions: the role of gender and culture. Entrepreneurship Theory and Practice, 36(3), 465–493.

    Article  Google Scholar 

  • Simmons, S., Wiklund, J., & Levie, J. (2014). Stigma and entrepreneurial failure: implications for entrepreneurs’ career choices. Small Business Economics, 42(3), 485–505.

    Article  Google Scholar 

  • Simmons, S. A., Carr, J. C., Hsu, D. K., & Shu, C. (2016). The regulatory fit of serial entrepreneurship intentions. Applied Psychology, 65(3), 605–627.

    Article  Google Scholar 

  • Sitkin, S. B. (1992). Learning through failure: the strategy of small losses. Research in Organizational Behavior, 14, 231–266.

    Google Scholar 

  • Stam, E. (2015). Entrepreneurial ecosystems and regional policy: a sympathetic critique. European Planning Studies, 23(9), 1759–1769.

    Article  Google Scholar 

  • Stam, E., Audretsch, D., & Meijaard, J. (2008). Renascent entrepreneurship. Journal of Evolutionary Economics, 18(3–4), 493–507.

    Article  Google Scholar 

  • Stangler, D., & Bell-Masterson, J. (2015). Measuring an entrepreneurial ecosystem. Kauffman Foundation Research Series on City, Metro, and Regional Entrepreneurship, 1–16.

  • Steensma, H. K., & Corley, K. G. (2001). Organizational context as a moderator of theories on firm boundaries for technology sourcing. Academy of Management Journal, 44(2), 271–291.

    Google Scholar 

  • Stewart, E. A., Baumer, E. P., Brunson, R. K., & Simons, R. L. (2009). Neighborhood racial context and perceptions of police-based racial discrimination among black youth. Criminology, 47(3), 847–887.

    Article  Google Scholar 

  • Sutton, R. I., & Callahan, A. L. (1987). The stigma of bankruptcy: spoiled organizational image and its management. The Academy of Management Journal, 30(3), 405–436.

    Google Scholar 

  • Szerb, L., Acs, Z., Ortega-Argilés, R., & Komlosi, E., (2015). The entrepreneurial ecosystem: the regional entrepreneurship and development index. Available at SSRN: http://ssrn.com/abstract=2642514 or https://doi.org/10.2139/ssrn.2642514.

  • Terjesen, S., Bosma, N., & Stam, E. (2015). Advancing public policy for high-growth, female, and social entrepreneurs. Public Administrative Review, 76, 230–239.

    Article  Google Scholar 

  • Ucbasaran, D., Shepherd, D., Lockett, A., & Lyon, S. J. (2013). Life after business failure: the process and consequences of business failure for entrepreneurs. Journal of Management, 39(1), 163–202.

    Article  Google Scholar 

  • UNDP (2016). Gender Inequality Index. Available at http://hdr.undp.org/en/composite/GII.

  • Vaillant, Y., & Lafuente, E. (2007). Do different institutional frameworks condition the influence of local fear of failure and entrepreneurial examples over entrepreneurial activity? Entrepreneurship & Regional Development, 19(4), 313–337.

    Article  Google Scholar 

  • Wayne, J. H., Grzywacz, J. G., Carlson, D. S., & Kacmar, K. M. (2007). Work–family facilitation: a theoretical explanation and model of primary antecedents and consequences. Human Resource Management Review, 17(1), 63–76.

    Article  Google Scholar 

  • Weiner, B., Perry, R. P., & Magnusson, J. (1988). An attributional analysis of reactions to stigmas. Journal of Personality and Social Psychology, 55(5), 738–748.

    Article  Google Scholar 

  • Wennberg, K., Wiklund, J., DeTienne, D., & Cardon, M. (2010). Reconceptualizing entrepreneurial exit: divergent exit routes and their drivers. Journal of Business Venturing, 25(4), 361–375.

    Article  Google Scholar 

  • 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 

  • World Bank. (2010). World Development Indicators. Available online at http://www.worldbank.org.

Download references

Author information

Authors and Affiliations

  1. Henry W. Bloch School of Management, University of Missouri – Kansas City, Kansas City, MO, 64110-2499, USA

    Sharon A. Simmons & Sanwar A. Sunny

  2. Martin J. Whitman School of Management, Syracuse University, Syracuse, NY, 13244-2450, USA

    Johan Wiklund

  3. Hunter Centre for Entrepreneurship, University of Strathclyde, Glasgow, UK

    Jonathan Levie

  4. Hankamer School of Business, Baylor University, Waco, TX, 76798-8006, USA

    Steve W. Bradley

Authors
  1. Sharon A. Simmons
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Johan Wiklund
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Jonathan Levie
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Steve W. Bradley
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. Sanwar A. Sunny
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Sharon A. Simmons.

Appendix

Appendix

Table 4 Sample and key variable statistics by country
Full size table

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Simmons, S.A., Wiklund, J., Levie, J. et al. Gender gaps and reentry into entrepreneurial ecosystems after business failure. Small Bus Econ 53, 517–531 (2019). https://doi.org/10.1007/s11187-018-9998-3

Download citation

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11187-018-9998-3

Keywords

  • Gender
  • Business failure
  • Stigma
  • Fear of failure
  • Entrepreneurship
  • Ecosystems

JEL classification

  • J16
  • L24
  • J26
  • M13