Loss Recovery for Entrepreneurs Re-Entering from Business Failure

Abstract

The purpose of this study is to identify the entrepreneurial failure impacts and how the process of recovering from losses caused by business failure to re-enter the next business. The research data were obtained using six case studies on companies that re-entered from failure. This business failure caused economic, social, and psychological costs. A failed entrepreneur needs recovery from losses that consist of economic, social, and psychological losses. The interview results with entrepreneurs uncovered that economic recovery from business failures was through family support and loans, bank loans, gifts from friends, and working as employees in other businesses. Meanwhile, the social impact recovery process was by establishing new relationships with other suppliers by instilling trust. Besides, support from family and friends was the psychological recovery. Religiously, recovery from business failure was done with more worship and giving alms.