Crossing the Rubicon in the Entrepreneurial Process: The Impact of Alternatives on Project Abandonment

Abstract

Entrepreneurship has long been associated with innovation and economic growth, yet many innovative ideas never see the light of day. This paper explores the phenomenon of early project abandonment in nascent entrepreneurship, with a specific focus on the role of alternative employment options in influencing this decision-making process. The paper begins with a comprehensive literature review on the startup process, the success and risk factors involved in the pre-entry phase, and the relevance of opportunity cost considerations. The review pays particular attention to the concept of the "Rubicon", representing the point at which entrepreneurs must decide to commit fully to their project or choose alternative career paths – an important watershed in the intention-to-implementation switch. Consequently, a research gap regarding the impact of alternative employment opportunities on project abandonment during the nascent phase of entrepreneurship is recognized. Addressing this specific area of interest, the analysis takes an explorative approach through interviews with 10 nascent entrepreneurs who quit their projects before crossing the Rubicon. Transcripts were thoroughly analyzed using a thematic analysis. This systematic methodology identified seven themes as potential drivers of abandonment. The themes include both “internal” variables relating to the personal consideration of entrepreneurs – the attractiveness of alternative career options, entrepreneurs' prioritization of their projects, and an experimenting mindset – and “external” factors, such as the stakeholders’ perception of the startup value, the team composition, and the support structures around the project. The discussion of findings highlights the interplay between these themes. As entrepreneurs approach the Rubicon, the existence of alternatives can influence the choice both directly – entrepreneurs themselves explicitly recognize their role – and indirectly – other factors influence the perception of alternative opportunities. The paper indeed emphasizes the dynamic nature of opportunity perception. Entrepreneurs collect information and adapt their choices throughout the entrepreneurial journey: both personal and contextual variables can shift from being positive drivers of commitment to becoming reasons for abandonment. This shift usually happens at the Rubicon, when entrepreneurs are forced to translate motivation into implementation, and to commit more seriously to the project. The findings provide valuable insights into the complexity of the decision-making process of early project abandonment, and the importance of taking a process view of opportunity perception, which has often been neglected in previous empirical research.