Determinants and pattern of entrepreneurial failure

Abstract

Abstract Research about business failure was focused on finding the reason of bankruptcy. This research tries to analyze reason and pattern of entrepreneurial failure. Based on 20 entrepreneurial failure cases, we figure out the reason of entrepreneurial failure, utilizing liability of newness and ERIS model. We find that start-up firms in Korea have liability of newness, such as lack of managerial capability, failure of R&D/commercialization, and difficulty of securing marketing channel. Also, we typologize 4 kind of entrepreneurial failure – Lack of preparation of business, failure of resource mobilization, absence of strategy, and failure of marketing. Key Words : Entrepreneurial failure, Liability of Newness, ERIS, Business failure pattern, Population ecology Received 1 May 2013, Revised 20 May 2013Accepted 20 May 2013Corresponding Author: Ha, Kyu Soo (Hoseo University) Email: ksh@hoseo.ac.krⒸ The Society of Digital Policy & Management. All rights reserved. This is an open-access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.otg/licenses/by-nc/3.0), which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.ISSN: 1738-1916