Psychological Resilience and Its Downstream Effects for Business Survival in Nascent Entrepreneurship

Abstract

While scholars frequently argue that nascent entrepreneurs will be more successful if they are resilient, this assumption remains untested and the mechanisms for its potential benefits are unknown. To establish the utility of this psychological construct, we draw from Fredrickson's broaden-and-build theory (1998 ) to develop and test theory on the processes through which psychological resilience influences first-time entrepreneurs' business survival. Results of a time-lagged study of nascent entrepreneurs followed over a 2-year period support this theory, highlighting the cognitive and behavioral ways in which psychological resilience helps nascent entrepreneurs become less vulnerable to their stressful circumstances.