Entrepreneurial identity refers to a person's set of meanings, including attitudes and beliefs, attributes, and subjective evaluations of behavior, that define him or herself in an entrepreneurial role. The construct of entrepreneurial identity encompasses how a person defines the entrepreneurial role, and whether he or she identifies with that role. By viewing firm founding as involving a role transition, we explore how entrepreneurial identity can influence successful founding behavior. We posit that when transition to the founder role involves high role novelty and role conflict that can lead to negative feedback, holding a complex and central entrepreneurial identity can facilitate the transition to the founder role by facilitating persistence while emphasizing role experimentation. In contrast, we posit that individuals with high identity centrality and low complexity would probably engage in limited search activities and ultimately become inactive but with an expectation of returning to entrepreneurial activity in the future. Overall, entrepreneurial identity is a dynamic construct whose development is influenced by network contacts that can in turn shed light on why some, and not others, become entrepreneurs.