The nascent entrepreneurial profile after failure: the Chilean case

Abstract

This research seeks to characterize the entrepreneur’s profile that fails and decide to start another business. We analyze a series of variables that determines this re-entrance profile based on information obtained from the 2012 Glo- bal Entrepreneurship Monitor, GEM, Chile project. Literature review enables and identifies ten variables that have influence on the process of entrepreneurial re-en- trance. These variables were matched with the measurements based on the GEM’s Adult Population Survey. Next, three study groups were undertaken and then analyzed by applying a logistic regression model, the three groups ana- lyzed were: Nascent entrepreneurs who have not discontinued in the last 12 months, entrepreneurs who discontinued and then re-engaged within 12 months and entrepreneurs who discontinued and do not undertake in start-up activity within 12 months.
The main results related to the characterization of the Chilean re-entrepreneurial profile, revealing that the re-en- try is high for men, individuals who have experience as a business angel investor, for people that have full owner- ship of the business, for people with a low or medium educational level, for people who know an entrepreneur (have a network of contacts), for individuals who have business experience, for people living in urban zones and those with a greater fear of failure.