Credit: CC0 Public Domain
Life-changing events like the birth of a child, the purchase of a new home, or a lottery win could threaten the survival of a new business venture, research from Edith Cowan University (ECU) has found. The work is published in the International Entrepreneurship and Management Journal.
A recent study led by ECU’s Professor of Entrepreneurship and Innovation Pi-Shen Seet with Associate Professor Wee-Liang Tan from the Singapore Management University found that positive family events had a comparatively greater influence, albeit negatively, on the survival of a new venture, compared with negative events.
“A positive family event, like the birth of a child, often has an emotional spin-on effect for an entrepreneur and could lead to greater confidence. This ego boost could result in an entrepreneur being overconfident and making poor business decisions.
“On the other hand, entrepreneurs that are impacted by divorce or financial difficulty, or even a death in the family, tend to put more consideration into business ventures and may make more considered and better business decisions,” said Professor Seet.
While good fortune often translates into entrepreneurs becoming more passionate, alert to new opportunities and more creative, this was in no way an indicator of future business success.
2024-05-26 22:00:02
Source from phys.org