Re-entry Following Firm Failure: Nascent Technology Entrepreneurs’ Tactics for Avoiding and Overcoming Stigma

How infrastructures anchor open entrepreneurship: The case of Bitcoin and stigma

“…This is despite widespread acknowledgement of the importance of entrepreneurial survival for the creation of long‐term economic and social value (Brüderl, Preisendörfer, & Ziegler, ). As is the case here, stigma is likely to mean that an entrepreneur fails to build—or loses—legitimacy, thus, becoming alienated from customers, institutional support, and other resources upon which long‐term survival depends (Suchman, ; Walsh, ). Social considerations, such as ideology, and the (subjective) view of the digital infrastructure involved (O'Mahony, ) are likely to affect the response to this kind of stigma.…”

Managing crisis: a qualitative lens on the aftermath of entrepreneurial failure

“…The findings also expressed further how negative emotions can yield positive outcomes because it gives the entrepreneurs enough time to reflect and articulate the causes of failure and find the opportunity to make changes with future venture engagements. They were able to learn more about their venture and why it failed, their networks and external relationships and also how to better manage their firm in the future (Amankwah-Amoah et al 2018;Singh et al 2007;Cope 2011;Walsh 2017).…”

“…Most entrepreneurs who experience failure and learned from it, usually use their failed experience as an opportunity to engage in new venture. Findings highlight that the process in founding a new business venture is one means entrepreneurs use to recover from their previous failed experiences (Amankwah-Amoah et al 2018;Walsh 2017). Walsh (2017) highlight that in order to effectively re-enter and start a new venture, entrepreneurs must learn to detach themselves from the failed firm, acknowledge that the firm has failed, and deflect from stigmatization (P.103).…”

“…Findings highlight that the process in founding a new business venture is one means entrepreneurs use to recover from their previous failed experiences (Amankwah-Amoah et al 2018;Walsh 2017). Walsh (2017) highlight that in order to effectively re-enter and start a new venture, entrepreneurs must learn to detach themselves from the failed firm, acknowledge that the firm has failed, and deflect from stigmatization (P.103). Additionally, entrepreneurs also express that their previous failed experiences help them to direct their future business and career path and the decisions leading to it (Dias and Teixeira 2017).…”

“…Accordingly, a few quantitative studies have tried to see the relationship between failure and re-entry and what factors influences new venture engagement after the failure occurrence (e.g., Cardon and McGrath 1999;Nikolić et al 2019;Politis and Gabrielsson 2009;Ucbasaran et al 2010). A significant number of qualitative research however, have sought to gain deeper understanding on how and why entrepreneurs manage firm failure and failure influences on new venture performance (e.g., Cardon et al 2011;Cotterill 2011;Singh, Corner and Pavlovich 2015;Walsh 2017). Given that the circumstances following failure can be complex and unpredictable, it becomes more suitable to apply qualitative methods to gain deeper understandings of the phenomenon, and generate new empirical theory suited for the above phenomenon.…”