Business failure and institutions in entrepreneurship: a systematic review and research agenda

Chong Kyoon Lee, Johan Wiklund, Alejandro Amezcua, Tae Jun Bae, Almantas Palubinskas

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


Because entrepreneurship entails uncertainty, business failure is a common outcome for entrepreneurs. When entrepreneurs encounter business failure, they carry a financial, social, and emotional burden associated with the failure. However, the magnitude of this burden differs by institutions, influencing entrepreneurial decisions and behaviors. Although institutions governing the rules of business failure are a topic for a rapidly growing field of research, research on this topic is highly fragmented. Therefore, the purpose of this systematic review is to unpack the relationships between institutions—governing the rules of business failure—and entrepreneurial decisions/behaviors. The paper provides a fine-grained and comprehensive review of the relevant literature and develops an agenda to guide future research.

Original languageEnglish (US)
Pages (from-to)1997-2023
Number of pages27
JournalSmall Business Economics
Issue number4
StatePublished - Apr 2022
Externally publishedYes


  • Business failure
  • Entrepreneurship
  • Institution
  • Review

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics


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