Factors increasing entrepreneurs’ loss concerns and role of startup accelerators in loss protection


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The aim of this study is to analyze the factors that increase loss concerns among entrepreneurs and the underlying mechanism for loss protection. An e-mail-based survey among 335 entrepreneurs from India is employed in this paper. Using a quantitative methodology and PLS-SEM approach, the study analyzed the relationship between loss concerns and loss protection behavior and the mediating role of startup accelerator programs. Thus, human capital increases loss concerns. Participating in the startup accelerator program is the underlying mechanism to carry out protection behavior when entrepreneurs deem their venture at risk of losing money. The theoretical model explicates 70% of variances in loss concerns and 42% of variances in protection behavior. Every one-unit increase in human capital and uncertainty increases the loss concern by 28% and 10%, respectively. Participating in the startup accelerator program increases the loss protection behavior of entrepreneurs by 36%. Perceived severity increases loss protection behavior by 17%. The present study extends the protection motivation theory in the entrepreneurship literature and provides evidence that startup accelerators influence entrepreneurs in increasing loss protection mechanisms in an emerging economy.

The authors appreciate the assistance provided by Arun Thottath in reaching out to survey participants.

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    • Figure A1. Variables’ effect on loss concerns
    • Figure A2. Variables’ effect on protection behavior
    • Table A1. Construct details
    • Table A2. Construct loadings
    • Conceptualization
      Ranjany Sundaram, Snehal Shetty
    • Data curation
      Ranjany Sundaram
    • Formal Analysis
      Ranjany Sundaram, Prashobhan Palakkeel
    • Software
      Ranjany Sundaram, Prashobhan Palakkeel
    • Visualization
      Ranjany Sundaram
    • Writing – original draft
      Ranjany Sundaram
    • Investigation
      Snehal Shetty, Prashobhan Palakkeel
    • Methodology
      Snehal Shetty, Prashobhan Palakkeel
    • Supervision
      Snehal Shetty
    • Validation
      Snehal Shetty, Prashobhan Palakkeel
    • Writing – review & editing
      Snehal Shetty, Prashobhan Palakkeel