Entrepreneurs and Business Failure: Taking a Second Chance

Abstract

The primary aim of this paper is to develop an understanding of the impact that business failure has on an entrepreneur's propensity and ability to restart their entrepreneurial journey. We present the story of entrepreneurship from the perspective of six entrepreneurs who created a new business after initially experiencing business failure. Data was collected in extended face-to-face interviews and the findings represent a detailed biography of each entrepreneur. Our findings highlight the significance of experiential learning for entrepreneurs who wish to recover and engage in a new venture creation. Entrepreneurs who experience failure may have enhanced abilities with regard to the management of resources, service and product development and finance. The decision to restart will often be framed by pride, life satisfaction and a lack of confidence about gaining meaningful employment. Entrepreneurs who have experienced business failure face problems in relation to: accessing finance; managing personal and business relationships; and in overcoming the stigma of failure. Therefore, there is a need to customize entrepreneurial initiatives and interventions to ensure that second chance entrepreneurs can be adequately supported.