Abstract
This paper investigates and discusses individuals’ internal circumstances as factors that may cause entrepreneurial failure, which consists of psycho-economic phenomenon and opportunistic behavior of individuals. The study is a quantitative study, and it operates relational analysis that relates existing arguments regarding psycho-economic factors to entrepreneurial failure. The study further adds and analyses the construct of opportunistic behavior as another possible factor that may cause entrepreneurial failure. The sample of the study is 1541 young entrepreneurs in West Sumatra Province, Indonesia, who have experienced failures in their previous businesses. The analysis was undertaken by using multiple and partial regression analysis in which the statistical protocol was operated. It is found that psycho-economic factors, together with opportunistic behavior of individuals in a lesser to a greater degree, have caused entrepreneurial failure to the context of the study. The study also implies and argues that opportunistic behavior may not only be viewed as a source of entrepreneurial success, as it also contributes to entrepreneurial failure. This finding clearly demonstrates the originality and value of this study since it argues that opportunistic behavior can also be viewed as a factor – apart from the other existing psycho-economic factors (deterministic, voluntaristic, and emotive) – that can cause entrepreneurial failure. The study further suggests that strengthening entrepreneurial personality, characteristics and psychological aspects should be a focus for the Indonesian government in promoting and developing young-nascent entrepreneurs.
Highlights
The most important entrepreneurial learning that can be absorbed by entrepreneurs supposes to be sourced from their experience regarding failures
Using our understanding of this model and its relationship, we further argue that the opportunistic behavior which arises within individuals can be predicted as another factor that can cause entrepreneurial failure experienced by nascent entrepreneurs
Our study proves that the psycho-economic phenomenon of individuals, which consists of: [a] voluntaristic factor, [b] emotive factor, and [c] deterministic factor are influencing the entrepreneurial failures experienced by West Sumatran nascent entrepreneurs
Summary
The most important entrepreneurial learning that can be absorbed by entrepreneurs supposes to be sourced from their experience regarding failures. In a study about the anatomy of entrepreneurs, Wadhwa, Holly, Aggarwal, and Salkever (2009) came out with the finding that successful entrepreneurs have experienced, on average, two to three failures in new ventures that they established before they reached success. This situation, and the condition of failure, has triggered entrepreneurs to become tougher, more resilient and, crucially, more able to learn from failures. Analyzing failure as a part of an entrepreneurial journey is necessary, since entrepreneurs cannot avoid it to achieve success. The existence of failure as an event in an entrepreneurial journey – followed by mental and learning processes and an experiential process – has raised a particular concept in entrepreneurship, which is introduced as the concept of serial entrepreneurship
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
