The Dual Nature of Failure in Entrepreneurship
DOI:
https://doi.org/10.58445/rars.3105Keywords:
Entrepreneurial Failure, Failure, Entrepreneur, Impacts of Failure, Responses to Failure, Culture, ExperienceAbstract
It is well-known that 90% of startups fail (Forbes). Then, how do entrepreneurs respond when they face the many failures that they inevitably encounter? This article outlines the specific impact failure has on entrepreneurs and the factors that shape how people respond to failure. This research paper uses a literature review, case study analysis, and a comparison and contrast of different responses to failure by analyzing existing qualitative research. This paper's key findings reveal that entrepreneurial failure can lead to improved psychological resilience, social network and relationship building, and problem-solving capabilities. However, failure also causes substantial mental and emotional challenges. Businesses and entrepreneurs should use these insights to create an environment that accepts failures and views them as valuable learning opportunities rather than sources of discouragement, and to fully extract and learn from failure once they experience it.
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