Why Rebels Build Startups
— and Rule-Followers Don’t

”People who care deeply about doing the right thing — the ones most likely to want to improve the world — may be the least likely to become entrepreneurs.”

In a nutshell

Some people break the rules to make things better — and those people are more likely to become entrepreneurs. But if they believe too strongly in always doing things by the book, they might never take the leap.

In a Bigger Nutshell

Entrepreneurs are often celebrated for thinking outside the box. But for those who see the box as a framework of values and responsibilities, stepping outside it can feel less like innovation and more like a series of ethical compromises. This tension lies at the heart of this recent study that explores one piece of the puzzle behind why some people lean into entrepreneurship while others don’t, even if they’re otherwise capable. It turns out that alongside skills and ambition, how people relate to rules — and whether they’re willing to bend them — can strongly shape their path into entrepreneurship.

Across two studies, the authors explore what they call “virtue-based rule-breaking”: the tendency to bend or break rules when it’s seen as the right thing to do. In a lab experiment, participants were rewarded for quietly breaking meaningless rules. In a second study with working adults, the focus shifted to “prosocial” rule-breaking: violating norms to help customers, colleagues, or communities. In both cases, those who broke more rules were more likely to want to start a business or already had. But this tendency only led to entrepreneurship when it came with a more flexible sense of right and wrong, or what the researchers refer to as “idealism.”

Publication Date: 13 June 2025

Authors: Leidy Cubillos-Pinilla, Sylvia Hubner-Benz, Pierre Balthazard, Franziska Emmerling, Claudia Peus

Institutions: Technical University of Munich, University of Paderborn, Fairleigh Dickinson University

Study Type: Mixed-method (behavioural experiment and survey)

Sample Size: 132 participants (Study 1), 292 participants (Study 2)

Research Focus: Ethical underpinnings of entrepreneurial intention and involvement

Research Methodology: Study 1 used a computerised lab task; Study 2 surveyed working adults on rule-breaking tendencies and entrepreneurial status

Main Findings: Rule-breaking tendencies predict entrepreneurial intentions. Low idealism amplifies the relationship between rule-breaking and entrepreneurship. High idealism dampens this effect due to cognitive dissonance.

Citation: Cubillos-Pinilla, L., Hubner-Benz, S., Balthazard, P., Emmerling, F., & Peus, C. (2025). I make my own rules: The role of rule-breaking and ethics in driving entrepreneurial intention and involvement. Journal of Small Business Management.  Link

Idealism, in this context, means holding on to strict moral principles and believing that doing the right thing always means following the rules. People high in idealism were less likely to see rule-breaking as acceptable, even when it served a good cause. And that seemed to hold them back from entrepreneurship, where situations are often messy, the rules don’t always make sense, and bending them can sometimes be necessary to get something good off the ground.

This creates a real tension. People who care deeply about doing the right thing — the ones most likely to want to improve the world — may be the least likely to become entrepreneurs. Not because they lack ideas or drive, but because the path looks morally uncomfortable. And if they do try, the constant ethical grey areas may lead them to pull back or burn out.

This in turn raises important questions for educators and those working to support future entrepreneurs. If people with strong moral ideals are less likely to pursue entrepreneurship, not due to lack of capability, but because of ethical discomfort, how might we design environments that better support them? One possibility is to explore how entrepreneurship education addresses the tension between ethics and action. Rather than treating rule-breaking as inherently negative or glossing over the moral ambiguity of real-world ventures, programmes could offer space to reflect on when and why certain rules may need to be challenged. Moral flexibility doesn’t have to mean abandoning one’s values — it can also mean learning how to uphold them in complex, imperfect systems.

For purpose-driven individuals who want to change the world, the entrepreneurial path should feel both accessible and principled. This research suggests that finding ways to support those navigating ethical dilemmas could be key to broadening who sees themselves as an entrepreneur, and who stays the course. Because if entrepreneurship really is one of the most powerful ways to create change, then understanding who opts out and why might be just as important as understanding who jumps in.

Related insights appear in
Overconfidence in Entrepreneurship Students,
Rethinking Who Fits the Mould in Entrepreneurship Education,
and
The Actual Skills You Need for Sustainable Entrepreneurship.

More Research Recaps:

Nordic entrepreneurship education – teacher training illustration

What The Nordics Are
Doing Right in Entrepreneurship Education

Nordic countries take entrepreneurship education seriously — and it starts with how they train teachers. By embedding entrepreneurial pedagogy in teacher education, they cultivate classrooms ...
Science-fiction prototyping workshop: students create speculative artefacts; science fiction in entrepreneurship education.

Teaching the Future
Before It Arrives

Blending science fiction with entrepreneurship education helps students imagine and prepare for radically different futures – not just extrapolate from the present. This study shows ...
Illustration symbolizing belief and self-efficacy in entrepreneurship education — Research Recap SSES.

Making Entrepreneurship Feel Doable

This seminal study helped move entrepreneurship education from assumption to evidence, showing that well-designed enterprise programmes can shift how high school students perceive the feasibility ...
Entrepreneurial method illustration, representing effectuation in entrepreneurship education

Introducing the Entrepreneurial Method

Teaching entrepreneurship is evolving from simply just tools and techniques to an entire method – one that teaches students to master uncertainty and create opportunities ...
Entrepreneurship education research review illustration

Untangling the Threads of Entrepreneurship Education Research

By reviewing over 150 studies, this influential paper brought clarity to the messy world of entrepreneurship education research — showing that how we teach matters ...
Research Recap – engineering entrepreneurship education (illustration)

Turning Engineers into Entrepreneurs

A Spanish university course used challenge-based learning to boost engineering students' entrepreneurial skills, improving their problem-solving, creative thinking, and resource management.
Entrepreneur facing burnout and work-life stress

Do Entrepreneurs Burn Out too?

Entrepreneurship is seen by many as a dream job – freedom, innovation, and self-fulfilment are all part of the allure, but there’s a flip side ...
Conceptual illustration of entrepreneurial self-efficacy and overconfidence among entrepreneurship students — SSES Research Recap.

Overconfidence in Entrepreneurship Students

Introductory entrepreneurship courses can unintentionally increase overconfidence, particularly in male students, while female students tend to show more realistic self-assessments. This gap suggests a need ...
Abstract illustration symbolizing balance and confidence in entrepreneurship training — Research Recap SSES

Maintaining Confidence in the Face of Realistic Challenges

Entrepreneurship training has its ups and downs, and maintaining students’ self-belief is key.
Entrepreneurship education effectiveness – research illustration

When does Entrepreneurship Education Actually Work?

Making entrepreneurship education compulsory doesn’t guarantee it will stick. Too early, and students tune out. Too late, and they’ve moved on. Taught poorly, and it’s ...