Accounting for the transitions after entrepreneurial business failure: An emerging market perspective

Amankwah‐Amoah, Joseph; Hinson, Robert Ebo; Honyenuga, Ben Q.; Lu, Yingfa

doi:10.1016/j.strueco.2019.06.011

Cited by 13 publications

(3 citation statements)

References 65 publications

(82 reference statements)

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“…Previous research has tended to concentrate on individual characteristics in explaining re-entry after failure (Baù et al, 2017;Espinoza-Benavides & Díaz, 2019;Stam et al, 2009); however, surprisingly, comparisons of entrepreneurial engagement across those with and without entrepreneurial experience have received limited attention (Gottschalk & Müller, 2022;Hessels et al, 2011;Nielsen & Sarasvathy, 2016). Furthermore, while a few recent studies have included environmental factors (Amankwah-Amoah et al, 2019;Espinoza-Benavides et al, 2021;Simmons et al, 2019), they have failed to acknowledge context variations that may (dis)encourage re-engagement in entrepreneurship after a business failure, in particular, the role of a country's formal and informal institutions (North, 1990). On the one hand, it is still unclear whether informal institutions can play a fundamental role in fostering entrepreneurial activity after a failure, as they have already been shown to engage in initial/novice entrepreneurial activity (Urbano et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

Engagement in entrepreneurship after business failure. Do formal institutions and culture matter?

2023

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Despite the extensive literature on the relationship between entrepreneurship and institutions, there is limited knowledge of the relationship between institutions and engagement after failure. This study compares the entrepreneurial engagement of entrepreneurs who have recently experienced failure and individuals without entrepreneurial experience, emphasizing the interaction of government policies and programmes (formal institutions) and individualistic/collectivist cultures (informal institutions) with business failure and its impact on entrepreneurial engagement. We test our hypotheses using multilevel analysis on a large cross-sectional sample that combines individual-level data from the Global Entrepreneurship Monitor (GEM) database with country-level data from 49 economies. We provide evidence of selection bias for the entrepreneurial engagement of entrepreneurs after failures and of the role of culture as a significant aspect of re-entry into entrepreneurship. Therefore, our evidence helps reinforce the view that postfailure entrepreneurs are a special group of entrepreneurs and validates the contribution of institutional economic theory in explaining this phenomenon, especially the key role of informal institutions.

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Section: Introductionmentioning

confidence: 99%

Engagement in entrepreneurship after business failure. Do formal institutions and culture matter?

2023

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“…We can consider, as Shepherd (2003), that entrepreneurial learning through failure corresponds to the entrepreneur's ability to detect the causes of failure and to exploit his or her knowledge. It is then a dynamic process of knowledge construction, preceded by the two mechanisms of collecting and interpreting information (De Hoe and Janssen, 2015;Amankwah-Amoah et al, 2019;Schwab et al, 2022).…”

Section: Entrepreneurial Learning Through Failurementioning

confidence: 99%

The Realities of Learning through Failure in Entrepreneurship: Results of Qualitative Research

Mtibaa

Boudabbous

2023

IRMM

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In this research work, we sought to conceptualize the existing relationship between entrepreneurial learning and failure. By exploring the theoretical models of entrepreneurial learning, particularly those of Cope (2005) and Politis (2005), we identified three major research proposals that we confronted with reality by conducting an exploratory qualitative study with 10 Tunisian entrepreneurs who had experienced failure during their entrepreneurial activity. Through this study, we retained that failure constitutes an opportunity for entrepreneurial learning that manifests itself as a continuous process where the emotions of the entrepreneur play an important role. This learning depends on the nature of the failure, the emotions and the emotional regulators.

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“…The proposed structure for business plan development, based on any approach or guideline, should be flexible, with slight variations in different conditions and updated to suit business requirements. However, most business failures are due to lack of flexibility, roadmap and legal and bureaucratic processes (Amoah, 2019).…”

Section: Factors Affecting Failure Of Local Entrepreneursmentioning

confidence: 99%

Analysis of the factors affecting probable failure of local entrepreneurs

Qeidari

Salehi

Salehiniya

et al. 2020

IJLMA

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Purpose This study aims to investigate and analyze the factors affecting the probable failure of rural entrepreneurs so that the most important factors responsible for failure in the business of small and local entrepreneurs are identified. Design/methodology/approach The present survey was conducted through the descriptive-analytical method by using a researcher-made questionnaire. The statistical population of the study included 1,641 greenhouse owner entrepreneurs in five rural communities. To clarify the key criteria affecting probable failure of greenhouse businesses, LISREL 8.8 computer software was used and the effects of selected indices on the process of probable failure of entrepreneurs were assessed using stepwise regression in the SPSS computer application environment. Findings According to the results, individual and managerial skills factors, deterrent financial and legal issues, social barriers and infrastructural issues investigated in this study were of the first to the fourth priorities in clarifying factors affecting probable failure of greenhouse businesses. Considering the intragroup relations in these factors, it could be said that individual and managerial skills factors and infrastructural issues had the highest correlation coefficient which could be attributed to individual and management weaknesses of entrepreneurs in understanding infrastructural issues as the most important parameters to be considered in starting businesses. Originality/value So far, few studies analyzed the failure of rural entrepreneurs and evaluated the probable factors affecting it. Thus, the present study is among the earliest instances in the field and its results could be of great benefit to domestic entrepreneurs and similar cases in other countries.

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Accounting for the transitions after entrepreneurial business failure: An emerging market perspective

Abstract: The version in the Kent Academic Repository may differ from the final published version. Users are advised to check http://kar.kent.ac.uk for the status of the paper. Users should always cite the published version of record.

Cited by 13 publications

References 65 publications

Engagement in entrepreneurship after business failure. Do formal institutions and culture matter?

Engagement in entrepreneurship after business failure. Do formal institutions and culture matter?

The Realities of Learning through Failure in Entrepreneurship: Results of Qualitative Research

Analysis of the factors affecting probable failure of local entrepreneurs

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