Premature Entrepreneurial Exit: Exploring the Role of Goal Setting Bias

The stimulation of entrepreneurship and the support to venture creation is widely introduced in governmental policy plans. Despite the good intentions, the failure rate of start-ups remains the same. Research on entrepreneurial exit and the design of effective prevention measures seem to be at a dead end. New perspectives might generate an impetus to this field. In this paper the goal setting theory is explored. The findings indicate that there are designations that a bias in goal setting effect premature entrepreneurial exit. In this paper important recommendations for further research are given.