Moving forward: Balancing the financial and emotional costs of business failure

Shepherd, Dean A.; Wiklund, Johan; Haynie, J. Michael

doi:10.1016/j.jbusvent.2007.10.002

Cited by 394 publications

(318 citation statements)

References 89 publications

(102 reference statements)

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“…Moreover, self-stigmatization may shape failing entrepreneurs actions, in addition to social stigmatization, since venture founders intertwine their identities with venture outcomes (Cardon et al 2005) and see their businesses as extensions of themselves (Shepherd et al, 2009). …”

Section: Introductionmentioning

confidence: 99%

Failed, not finished: A narrative approach to understanding venture failure stigmatization

Singh

Corner

Pavlovich

2015

Journal of Business Venturing

185

169

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This paper implements a qualitative, narrative approach to investigate entrepreneurs' personal experience of stigma associated with venture failure. Findings draw on the lived experience of 12 entrepreneurs and tell a collective story of how stigma affects entrepreneurs, shapes their actions, and engenders outcomes for them and their ventures. The story covers three episodes of entrepreneurs anticipating, meeting, and then transforming venture failure. Overall the paper shifts the focus of stigma research from the socio-cultural perspective pervading research to date, to micro level processes underlying socio-cultural trends. Findings offer unexpected insights into failure stigmatization. First, findings suggest stigmatization is best viewed as a process that unfolds over time rather than a label. Second, this process begins before, not after, failure and contributes to venture demise. Third, there is a positive ending to the collective story in that stigmatization ultimately triggers epiphanies or deep personal insights which transform entrepreneurs' view of failure from a very negative to a positive life experience. This transformation results in entrepreneurs distributing learning from failure to the founding of future ventures, even when ventures are not their own.

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Section: Introductionmentioning

confidence: 99%

Failed, not finished: A narrative approach to understanding venture failure stigmatization

Singh

Corner

Pavlovich

2015

Journal of Business Venturing

185

169

View full text Add to dashboard Cite

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“…He argues that either strategy on its own creates further negative consequences for the entrepreneur. Scholars have even introduced the notion of anticipatory grief where entrepreneurs facing the likelihood of venture failure begin the grieving process before the venture actually fails (Shepherd, Wiklund and Haynie, 2009). The authors argue that in some situations the delaying of business failure can help balance the financial and emotional costs of failure and enhance recovery.…”

Section: Introductionmentioning

confidence: 99%

“…To date, the focus in this recovery research has been predominantly on practical issues such as overcoming financial loss (Ucbasaran et al, 2013;Shepherd, Wiklund & Haynie, 2009), the avoidance of the negative emotions generated by venture loss (Shepherd, 2003, Cope, 2011, or the important economic issue of whether the entrepreneur founds another venture (Hayward et al, 2010;Shepherd, Wiklund & Haynie, 2009). We contend that this view of recovery is a limited.…”

Section: Introductionmentioning

confidence: 99%

Spirituality and entrepreneurial failure

Singh

Corner

Pavlovich

2016

Journal of Management, Spirituality & Religion

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The paper examines how spirituality affected entrepreneurs' experience of venture failure and its aftermath. Failure is an important but under-researched part of the entrepreneurial process.We implement a qualitative, narrative research design and present a collective story of nine spiritually oriented entrepreneurs' experience of failure. Overall, the paper extends research beyond the current psychological focus to a spiritual perspective. Findings show that entrepreneurs' experience of failure was different from that predicted by psychological theories. Entrepreneurs deeply engaged with failure instead of indulging in self-deception and other cognitive strategies to cope with the negative emotions of failure. Furthermore, findings revealed a rare, unexpected positive outcome from failure -entrepreneurs evolved spiritually through experiencing this negative life event.

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“…For example, bankruptcy laws vary by country, and the "strictness" of these laws has a bearing on the financial costs borne by the entrepreneur from a failed business (Lee, Peng, & Barney, 2007;Lee, Yamakawa, Peng, & Barney, 2011). Although we have gained a substantial understanding of the financial costs of failure (and, for that matter, the financial costs of persisting despite poor performance [Gimeno, Folta, Cooper, & Woo, 1997;Shepherd, Wiklund, & Haynie, 2009]), there is still much to learn.…”

Section: The Financial Implications Of Entrepreneurial Failurementioning

confidence: 99%