It is widely accepted that entrepreneurs with growth aspirations are an importance source to drive economic growth and job creation (Stam et al., 2007). Although the prevalence of the entrepreneurs with growth aspirations varies significantly across countries, we still know little about the factors that induce the national difference. Prior research has tended to focus on institutional factors which influence the expected outcome when ventures face upside. However, entrepreneurs also concern institutional factors if ventures face downside. One force that has been shown in prior research to influence entrepreneurial entry decisions is the stigma of failure (Damaraju et al., 2010). Moreover, Shepherd, Wiklund, and Haynie (2009) highlight the negative implication of the stigma of failure, such as financial loss and emotional distress. Thus, the aim of this research is to investigate the question, to what extent does the stigma of entrepreneurial failure influence the growth aspirations of entrepreneurs?