Getting your hopes up but not seeing them through? Experiences as determinants of income expectations and persistence during the venturing process

ABSTRACT

In this study, we investigate the effects of industry and startup experiences on income expectations and persistence of nascent entrepreneurs. We posit that experience can have two interrelated effects: (1) it provides skills that may affect persistence, but also (2) affects performance expectations. We develop and test hypotheses about the impact of industry and startup experience on both expectations and persistence. Data of 808 nascent entrepreneurs from the Panel Study of Entrepreneurial Dynamics show that industry experience increases income expectations and persistence alike, whereas startup experience increases expectations without increasing persistence. We discuss implications for scholarship and practice.

Notes

¹ We thank an anonymous reviewer for this idea.

Additional information

Funding

Research reported in this paper was partially funded by the Spanish Ministry of Economy and Competitiveness and European Regional Development Fund (ERDF) [Grant No. ECO2015-66146-R and ECO2014-52944-R].