Gabriel Rocha Venturim
Master's – The importance of self-confidence and failure experience in the creation of startups
Advisor: Prof. Dr. Alceu Salles Camargo Júnior
Comission: Profs. Drs. Marcelo Caldeira Pedroso, Marcelo Hiroshi Nakagawa and Alexandre Nabil Ghobril
Class: 215, FEA-5
Innovative entrepreneurship is considered an important pillar for economic development. However, the entry of new innovative firms is a very complex phenomenon, characterized by a high degree of failure with antagonistic effects to entrepreneur, reducing their cognitive effectiveness or improving cognitive development by introducing greater diversity into an individual's schema. The purpose of this study is to provide theoretical insights and empirical evidence on the emergence of entrepreneurial innovativeness. Guided by insights from cognitive theories, we explore the links between entrepreneurs' self-confidence, recent business failure experience, and their innovative behavior to create startups. Data used in the empirical analysis originate between 2012–2015, adult population surveys of the Global Entrepreneurship Monitor (GEM), yielding a sample of 47.994 nascent entrepreneurs and owner of a new business from 39 different countries. Hypotheses were tested using probit model, a type of regression used to model dichotomous or binary outcome variables. The results suggest that recent business failure (less than 12 months) is significantly associated with the decision to start an innovative business with product or service innovation, process innovation or business model innovation. Moreover, the results of our study reveal that the impact of self-confidence reflects only for product or service innovation.
*Abstract provided by the author