Wednesday, 10 April - 3 PM - 3F Room (DEM)

Abstract

The paper aims to explore entrepreneurs’ perception of the openness to failure atmosphere in the urban system where they operate, delving into the conditions that enable a place to encourage and absorb risk-taking activities, such as innovative experimentation related to product development and business model pivoting, rather than punishing or stigmatising failure endeavours. To do so, we rely on a database of about 400 entrepreneurs located in different European cities. Actors perceive greater openness to failure in entrepreneurial ecosystems with more foreign-born founders. Native actors perceive greater openness to failure, while outsiders perceive the opposite, potentially due to limited second chances and a lack of a safety net. Additionally, the study reveals that individuals within ecosystems where investors value entrepreneurs with encouraging personality traits over risk-taking behavior are more inclined to perceive their environment as open to failure. The paper contributes to the current literature on entrepreneurial failure and expands it by looking at the ecosystemic level. It also poses some policy implications related to inclusivity, especially for migrant entrepreneurs, in order to ensure equal opportunities and support across all demographic groups.