Serial entrepreneurship

Serial entrepreneurship, sometimes referred to as serial founding, is the practice of an individual founding multiple businesses sequentially over the course of a career. Serial entrepreneurs typically exit or step back from one venture before starting another, distinguishing them from portfolio entrepreneurs, who operate multiple businesses simultaneously, and novice entrepreneurs, who are founding their first business. A substantial share of new businesses are undertaken by individuals with prior entrepreneurial experience, and academic interest in serial entrepreneurship has grown significantly since the early 2000s.

Definition and types

Serial entrepreneurship is a form of habitual entrepreneurship, a broader category describing individuals with prior business ownership who continuously start new ventures. Serial entrepreneurs exit one venture before entering a subsequent one, distinguishing them from portfolio entrepreneurs, who continue to manage their original business while establishing or acquiring another, and from novice entrepreneurs, who are founding their first venture. While portfolio entrepreneurs manage multiple ventures concurrently, they have been shown to achieve higher levels of firm size and productivity than serial entrepreneurs. In the academic literature, the term "serial entrepreneur" is most commonly applied to the context of owner-managers, while the broader concept also encompasses entrepreneurial investors, corporate entrepreneurs, and freelance founders. Theoretical models propose that this pattern of sequential re-entry is driven by high-skill individuals seeking better matches between their capabilities and business opportunities, rather than permanently exiting to employment after a venture ends.

Prevalence

Estimates of the prevalence of serial entrepreneurship vary by country and methodology. A systematic review of 118 scholarly articles estimated that up to 50% of new ventures are founded by individuals with prior entrepreneurial experience.