Entrepreneurial Failure: A Learning Approach
Trudeau, Jack (2010) Entrepreneurial Failure: A Learning Approach. [Dissertation (University of Nottingham only)] (Unpublished)
It is widely acknowledged that entrepreneurs play a vital role in the process of economic growth (Schumpeter, 1950). While the majority of research has tried to explain entrepreneurial success, very little work has been carried out on failure. Due to the high levels of uncertainty and novelty associated with entrepreneurial ventures, many new ventures fail in the start up period, with reports estimating that failure rates are as high as 90% in the first five years of business (Shane, 2008). Failure – a loosely defined term – can range from complete venture liquidation to the inability to meet sales objectives. Consequently, for the purpose of this research we will be using McGrath’s (1999:14) definition: ‘failure is the termination of an initiative that has fallen short of its goals’, with ‘falling short of its goals’ not referring to a definitive termination of an activity, but rather that they failed to be achieved.
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