Nowhere to Run and Nowhere to Hide: The Relationship between Entrepreneurial Success and Feelings of Entrapment

Abstract

One unintended consequence of entrepreneurial action may be that the entrepreneur becomes intertwined with the business. This phenomenon is called entrapment and we draw on Becker's Side-Bet Theory to explore the relationship between entrepreneurial success, individual differences, and feelings of entrapment. The general logic is that as venture success increases entrepreneurs are better able to satisfy commitments and have a greater sense of alternatives that reduce feelings of entrapment. We surveyed 122 active entrepreneurs and found support for the venture success -feelings of entrapment relationship. We also found significant direct relationships between feelings of entrapment and attitude towards risk and fear of failure, however, these variables did not moderate the venture success -entrapment relationship. One implication of our findings is that entrepreneurs running marginally performing businesses are likely to experience greater feelings of entrapment.

Endings and Visions of New Beginnings: The Effects of Source of Unemployment and Duration of Unemployment on Entrepreneurial Intent

“…Fear of failure has been shown to influence opportunity related cognitions and decision making (Mitchell and Shepherd 2010;Wood and Rowe 2011), and social psychology research has also shown that individual differences can mitigate framing effects (Simon, Fagley, and Hallerman 2004). The implication for our model is that fear of failure may impact the risk tolerance, desirability, and feasibility cognitions associated with the loss framing engendered by layoff or long-term unemployment.…”

“…There is considerable social psychology and entrepreneurship literature suggesting that fear of failure and risk propensity are two stable dispositional variables that affect entrepreneurial outcomes (Atkinson 1966;Elliot and McGregor 1999;Meertens and Lion 2008;Mitchell and Shepherd 2010;Wood and Rowe 2011). We integrate these two variables into our model by proposing that they have moderating effects on the two primary relationships argued above: the effect of layoff on entrepreneurial intent, and the influence of duration of unemployment on entrepreneurial intent.…”

A reconceptualization of fear of failure in entrepreneurship

“…Third, the purely psychological view of fear of failure in entrepreneurship is that fear of failure is a negative feeling that results from the anticipation of the possibility of failure and is associated with psychological and behavioral outcomes (e.g., Chua & Bedford, 2015;Li, 2011;Mitchell & Shepherd, 2010;2011;Welpe, et al, 2012;Wood & Pearson, 2009;Wood & Rowe, 2011;Wood et al, 2013Wood et al, , 2014. Interestingly, these studies differ in the measurement of fear of failure.…”

“…It is not clear, however, whether negative affect is an antecedent or outcome of a particular decision. Other scholars who adopt a purely psychological view of fear of failure (Mitchell & Shepherd, 2010;2011;Wood & Pearson, 2009;Wood & Rowe, 2011;Wood et al 2013Wood et al , 2014 employed the Performance Failure Appraisal Inventory (PFAI) by Conroy and colleagues (2002;2003). In the case of the PFAI, it is not clear whether the scale assesses the actual emotional experience or a predisposition to experience fear of failure.…”

“…Mitchell & Shepherd, 2010;2011;Wood & Pearson, 2009;Wood & Rowe, 2011;Wood et al, 2013;2014), even it is not a perfect fit for research in entrepreneurship. Indeed, a fundamental element of the experience of fear of failure in entrepreneurship is the notion that cognitive beliefs about the aversive consequences of failure are strongly influenced by the socially situated context.…”