The growth aspirations of underdog entrepreneurs

•The underdog theory of entrepreneurship suggests that underdog entrepreneurs are less risk-averse.•Using a set of loan applications, this study tests the relationship between the underdog attributes of the entrepreneur and entrepreneurial growth aspirations.•We find support for our primary hypothesis that the underdog attributes of the entrepreneur are positively associated with entrepreneurial growth aspirations.•We also find that higher business income negatively moderates the relationship between the underdog attributes of the entrepreneur and entrepreneurial growth aspirations. A growing number of studies suggest that underdogs have a propensity for entrepreneurship. However, the underdog entrepreneur’s propensity for firm growth after launching their ventures remains largely unknown. In this paper, we advance our understanding of underdog entrepreneurs by focusing on their entrepreneurial growth aspirations. More specifically, we leverage insights from the underdog theory of entrepreneurship, entrepreneurial growth aspirations, and prospect theory as a first step in uncovering the relationship between underdog attributes and firm growth. To test our model, we leverage a portfolio of loan applications from entrepreneurs based in the United States. Our findings suggest that underdog attributes are associated with growth aspirations, and higher business incomes negatively moderate this relationship.