Identification of Factors that prevent Potential Entrepreneurs from Founding

DOI: 10.5176/2010-4804_3.4.340

Authors: Richard Geibel, Hossein Askari, and Joachim Heinzel

Abstract:

The goal of this research paper is to identify personal and environmental factors that prevent individuals from founding a company despite perceiving a business opportunity. Our findings suggest that a weak economic growth and low start-up activity in a country increases the individuals’ fear of failure whereas we don’t find any correlation between the availability of start-up capital and the fear of failure rate.

Keywords: fear of failure rate, opportunity, start-up activity, economic development, reputation, entrepreneurship education