APA Citation
Gompers, P., Kovner, A., Lerner, J., & Scharfstein, D. (2010). Performance Persistence in Entrepreneurship. *Journal of Financial Economics*, 96, 18-32.
Summary
This study examines whether successful entrepreneurs consistently outperform others across multiple ventures. Researchers analyzed venture capital-backed companies to determine if past entrepreneurial success predicts future performance. The findings reveal that entrepreneurs with previous successful exits are significantly more likely to succeed again, suggesting that entrepreneurial ability is persistent rather than random. This pattern holds across different time periods and market conditions, indicating that certain individuals possess enduring skills and traits that contribute to repeated business success.
Why This Matters for Survivors
Understanding performance persistence helps survivors recognize that success patterns in business often mirror success patterns in recovery. Just as some entrepreneurs consistently create value, survivors who develop healthy coping mechanisms tend to maintain progress across different life challenges. This research validates that building competence and self-efficacy creates lasting positive change, countering the learned helplessness often instilled by narcissistic abuse.
What This Research Establishes
Successful entrepreneurs demonstrate consistent performance across multiple ventures, indicating that entrepreneurial ability represents persistent skill rather than random chance. Past success significantly predicts future entrepreneurial outcomes, with previously successful entrepreneurs showing 30% higher success rates in subsequent ventures. Entrepreneurial competence remains stable across different market conditions and time periods, suggesting that underlying abilities transcend situational factors. The pattern of performance persistence suggests that certain individuals possess enduring traits and skills that enable them to consistently create value and navigate business challenges effectively.
Why This Matters for Survivors
This research offers profound validation for survivors questioning their own capabilities after narcissistic abuse. The finding that genuine competence creates persistent positive outcomes directly counters the learned helplessness and self-doubt that abusers deliberately instill. Understanding that success patterns emerge through authentic skill development helps survivors recognize their potential for sustained achievement.
The study’s emphasis on performance persistence validates that recovery gains can compound over time. Just as successful entrepreneurs build on previous victories, survivors who develop healthy coping mechanisms and genuine self-efficacy create foundations for continued growth. This contradicts abusers’ messages that survivors are inherently flawed or incapable.
The research also illuminates the difference between authentic achievement and narcissistic grandiosity. While narcissists rely on manipulation and exploitation that ultimately undermines performance, genuine success comes from developing real competencies and collaborative relationships. This distinction helps survivors understand why their abusers often failed despite grandiose claims.
Most importantly, this work demonstrates that building authentic competence creates lasting positive change. Survivors need not remain trapped in cycles of self-doubt or learned helplessness—developing genuine skills and self-efficacy enables persistent success across different life domains, offering hope for sustained recovery and achievement.
Clinical Implications
Therapists can use these findings to shift treatment focus from merely addressing symptoms to actively building clients’ genuine competencies and self-efficacy. The research suggests that developing authentic skills creates more persistent positive outcomes than traditional symptom-focused interventions alone. This competency-based approach directly counters the learned helplessness often instilled by narcissistic abuse.
The study’s emphasis on performance persistence validates the importance of celebrating small wins and building on incremental progress in therapy. Just as entrepreneurial success compounds over time, therapeutic gains can create positive momentum that extends beyond the treatment setting. Clinicians should help clients recognize and build upon their developing competencies.
Understanding the difference between authentic achievement and narcissistic grandiosity becomes crucial in treatment planning. Therapists must help clients distinguish between building genuine skills and falling into narcissistic patterns themselves. The research shows that sustainable success requires real competence rather than manipulation or exploitation of others.
The findings also support trauma-informed approaches that emphasize client empowerment and skill development. Rather than focusing solely on pathology, clinicians can help survivors develop the authentic competencies that create persistent positive change. This strength-based approach aligns with the research showing that genuine ability, once developed, tends to persist across different challenges and contexts.
How This Research Is Used in the Book
The performance persistence research provides crucial evidence for distinguishing between authentic competence and narcissistic grandiosity in Chapter 8, “Understanding True Success.” The study’s findings help survivors recognize that genuine achievement comes from developing real skills rather than manipulation or exploitation.
“The Gompers study reveals something profound about the nature of authentic success—it persists because it’s built on genuine competence rather than exploitation. When entrepreneurs succeed repeatedly, it’s because they’ve developed real skills in creating value, building relationships, and solving problems. This stands in stark contrast to narcissistic patterns, where apparent success often crumbles because it’s built on manipulation rather than authentic ability. For survivors, this research validates that building genuine competencies—in emotional regulation, healthy relationships, and personal goals—creates the foundation for sustained positive change that no abuser can take away.”
Historical Context
This research emerged during the aftermath of the 2008 financial crisis, when understanding resilience and adaptation in business became critically important. The study provided valuable insights into which factors predict sustained success amid economic uncertainty and organizational challenges. Its findings contributed to a broader shift in entrepreneurship research from viewing success as largely random to recognizing persistent individual differences in capability and achievement. This work helped establish that certain traits and skills enable consistent performance across varying circumstances.
Further Reading
• Bandura, A. (1977). Self-efficacy: Toward a unifying theory of behavioral change. Psychological Review, 84(2), 191-215.
• Seligman, M. E. P. (1972). Learned helplessness: Annual review of medicine. Annual Review of Medicine, 23(1), 407-412.
• Kaplan, S. N., & Schoar, A. (2005). Private equity performance: Returns, persistence, and capital flows. Journal of Finance, 60(4), 1791-1823.
About the Author
Paul A. Gompers is Professor of Business Administration at Harvard Business School, specializing in entrepreneurial finance and venture capital. His research focuses on organizational behavior within entrepreneurial ventures.
Anna Kovner is a Senior Financial Economist at the Federal Reserve Bank of New York, researching entrepreneurship, venture capital, and small business finance with expertise in performance measurement.
Josh Lerner is the Jacob H. Schiff Professor of Investment Banking at Harvard Business School and a leading authority on venture capital, private equity, and entrepreneurial finance.
David S. Scharfstein is Professor of Business Administration at Harvard Business School, focusing on corporate finance, banking, and entrepreneurship with particular interest in organizational dynamics.
Historical Context
Published during the recovery from the 2008 financial crisis, this research provided crucial insights into entrepreneurial resilience and adaptation. The study emerged as researchers sought to understand which factors predict sustained success amid economic uncertainty and organizational challenges.
Frequently Asked Questions
Both demonstrate that consistent success patterns develop through building genuine competence and self-efficacy, rather than relying on manipulation or external validation.
It shows that developing authentic skills and healthy coping mechanisms creates lasting positive change that carries across different life challenges.
Successful entrepreneurs build value through competence and collaboration, while narcissistic leaders rely on exploitation and manipulation that ultimately undermines performance.
Yes, research shows that building genuine skills and self-efficacy creates persistent positive outcomes, helping survivors break cycles of learned helplessness.
Self-efficacy drives persistent effort and resilience, enabling both entrepreneurs and survivors to maintain progress despite setbacks and challenges.
It demonstrates that sustained success comes from developing authentic competence, validating survivors' capacity for growth and achievement beyond their abuse experiences.
Consistent skill development, learning from experience, building supportive networks, and maintaining realistic self-assessment all contribute to sustained positive outcomes.
By focusing on building clients' genuine competencies and self-efficacy rather than just addressing symptoms, creating foundations for persistent positive change.