Rehearsing entrepreneurship: Identity formation in the transition to entrepreneurship after an emotional job loss

Purpose This paper investigates how a new entrepreneurial identity forms in conjunction with prior work-related identities during sponsored self-employment after an emotional job loss. Design/methodology/approach The authors empirically examine why some dismissed employees failed and others succeeded in transitioning from a wage-earner career via corporate sponsorship to a career as an entrepreneur, investigating how those employees meaningfully constructed (or did not) an entrepreneurial identity. Findings The authors' findings show that the simultaneous preservation of central attributes of prior work-related identities and the engenderment of new entrepreneurial attributes support the formation of an entrepreneurial identity and that a liminal state, in which people practice entrepreneurship at work, may facilitate identity transition. Originality/value This paper demonstrates that the initial entrepreneurial endeavor is based on prior work-related identity and identity congruence between prior work-related identities and a projected entrepreneurial identity is of great importance for the identity transition. However, the authors also show that incongruence may in some cases turn into congruence if entrepreneurs are given the opportunity to experiment with provisional entrepreneurial selves in a risk-free environment (so-called liminal states).