Measuring Instances and Consequences of Entrepreneurial Failure

Failure is the most likely outcome for new organizations. Yet, more is known about organizational success than failure. Aldrich and Ruef note that: “Not only do most new businesses not grow, but more than half do not even survive for more than a couple of years. Correcting the misperception that has been introduced into the literature by selection biases favoring growing and profitable firms will give scholars and policymakers a more accurate...