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:

Entrepreneurship education research made clear — Research Recap

A Choice for Clarity

The "Research Recap" by SSES aims to identify and distill high-quality social science research on entrepreneurship education into engaging, accessible narratives, bridging the gap between ...
Classroom application of timing in entrepreneurial success

What Really Drives Entrepreneurial Success – Genius or Timing?

A massive study shows that entrepreneurial success isn’t just about creativity or timing — it’s the mix that matters.
Illustration symbolising the activist turn in entrepreneurship education, where students learn to transform systems for sustainability and justice.

An Activist Turn in Entrepreneurship Education

Entrepreneurship education must stop treating sustainability and justice as electives. This paper argues for activist pedagogies that bake in purpose at the core, equipping students ...
Research recap – secondary school to startups (illustration)

From Secondary School to Startups

Turns out entrepreneurship isn’t necessarily just a university thing. A Danish school reform shows that early exposure to entrepreneurship boosts startup rates and nudges students ...
Research Recap: The Many Lives of an Entrepreneur (entrepreneurial career trajectories)

The Many Lives of an Entrepreneur

The Many Lives of an Entrepreneur maps four life-course paths into entrepreneurship and shows which trajectories lead to lasting outcomes.
Investors reviewing startup pitches — gender bias in funding

Gender Bias in Entrepreneurial Funding

Women entrepreneurs face stricter investor scrutiny and receive less funding than men, but new research shows these biases can shift, offering hope for change in ...
Angel investment in entrepreneurship – funding and mentorship illustration

When Funding Comes with Strings Attached

Angel investments can supercharge your startup with funding, mentorship, and networks – but often at the cost of some autonomy. Striking the right balance between ...
Students reflecting during entrepreneurship assessment workshop at Karolinska Institute

Measuring What Matters

Entrepreneurship education has long measured success by counting new ventures or business plans. This study shows how assessment can instead reveal how students actually develop ...
Entrepreneurship Nobel Prize – creative destruction and long-run growth (illustration)

Why Entrepreneurship Just Won the Nobel Prize

This year’s Nobel Prize in Economic Sciences was awarded for explaining how innovation-driven entrepreneurship turns stagnation into long-term economic growth. By placing creative destruction at ...
Research recap – who fits the mould in entrepreneurship education (illustration)

Rethinking Who Fits the Mould
in Entrepreneurship Education

Entrepreneurship education may still lean on masculine ideals, but educators and students are increasingly aware of this — and some are finding ways to broaden ...