Venture Failure Research Articles

Income Property in Moscow at the turn of the 19th and 20th centuries as an economic phenomenon

The turn of the 19th to the 20th century marked a period of industrialization and urbanization that significantly impacted social and economic dynamics. Moscow, like other metropolises of the time, experienced rapid urban population growth, creating a demand for both housing and commercial spaces. In this context, studying the emergence and development of income properties is highly relevant as it sheds light on how urban spaces, society, and human relationships to housing transformed under the influence of economic and social changes during this period. This research examines and analyzes the role and place of income properties within the urban housing system, assessing how accessible life in such buildings was for city dwellers, the economic foundations behind their emergence, and the impact of their construction on Moscow's architectural landscape. The conclusion offers a summarized evaluation of the economic, social, and cultural significance of income properties in Moscow. The scientific novelty of this study lies in the underexplored history of Moscow's income properties from financial-economic and social perspectives. Firstly, analyzing financial-economic aspects allows for a deeper understanding of investment mechanisms in urban real estate and their influence on market formation. Investigating the motives and financial strategies of owners and investors in income properties can illuminate the reasons behind the success or failure of such ventures, as well as their role in the city's economic development. Secondly, exploring social aspects enables an examination of issues related to social mobility, population structure, and social changes occurring within the context of urban development. These topics broaden our understanding of the city's social history. Studying these relationships will introduce previously unpublished materials into circulation, systematizing existing data based on diverse sources of information.

Entrepreneurs’ thriving after venture distress: The role of self-compassion, learning, and venture failure

Well-being is important to entrepreneurs, yet entrepreneurship does not necessarily foster well-being. Stressful work conditions such as venture distress might put entrepreneurs’ well-being under pressure. Drawing upon self-determination theory, we investigate the conditions that enhance entrepreneurs’ thriving after experiencing venture distress. We test this model on a survey-based sample of 177 entrepreneurs in Belgium who either persisted with their distressed venture or started a new one after their distressed venture had failed. Our findings reveal that personal attributes of self-compassion and learning from venture distress can buffer the potential negative effects of venture distress experiences on entrepreneurs’ subsequent thriving. In addition, this protective capacity is not mitigated by the failure of the distressed venture. We further discuss the theoretical and practical implications of these findings. JEL CLASSIFICATION: L26, M13, I31

Impact of regulatory, normative and cognitive institutional pressures on rural agribusiness entrepreneurial opportunities and performance: empirical evidence from Ghana

Abstract Entrepreneurs in the agribusiness sector in Ghana encounter numerous challenges due to the weak institutional framework in the country. This often leads to business failure and poor performance of agribusiness ventures. In this paper, we aim to highlight the significance of institutional support for agribusiness entrepreneurs and its crucial role in creating more opportunities for farm entrepreneurs and ensuring the success of farm ventures. The study analyzes empirical data collected from 246 maize farm entrepreneurs in Ghana using the Structural Equation Modelling technique (PLS-SEM). The findings show that regulatory and cognitive institutions have a more positive significant influence on the opportunity recognition and exploitation strategies of maize farm entrepreneurs. Both opportunity recognition and exploitation partially mediate the effects of regulatory, normative and cognitive institutional pressures and farm business performance. The study suggests that maize farm entrepreneurs appear to benefit from regulatory and cognitive institutions. The findings, therefore, have strong policy relevance. The results of this study contribute significantly to food policy aimed at boosting maize supply chain business and food security.

What Next? An Exploration of Entrepreneurs' Post-Failure Career Behavior

Business failure may be a challenging experience for many entrepreneurs, yet entrepreneurs continue to engage in venture creation and development. The present study integrates Social Cognitive Career Theory (SCCT) with recent theoretical and empirical insights on habitual entrepreneurship to explain and predict how past performance shapes entrepreneurs’ subsequent career-related cognitions and behavior. Leveraging a novel cross-national dataset of 2,093 experienced entrepreneurs in Latin America, this study found that compared to experienced entrepreneurs without prior failure, failed entrepreneurs are more likely to start new businesses. The study also found, counter to expectations, that the likelihood of entering paid employment decreases, rather than increases, after a venture failure. The study concludes by considering the implications of these findings and suggesting avenues for future research.

Examining entrepreneurial successes and failures during the COVID-19 pandemic (2019–2023)

PurposeWhen entrepreneurship scholars and policy makers turned their attention to entrepreneurial ventures during the COVID-19 pandemic (2019–2023), its full effects on entrepreneurial firms and systems presented radically challenging questions and unresolved puzzles. In this paper, the authors shed light on these questions and puzzles with a large-scale empirical examination of the pandemic's overall effects on entrepreneurs, entrepreneurial firms, entrepreneurial environments and responses with a view toward success and failure over time.Design/methodology/approachThe authors adopt a broad exploratory approach and examine different perspectives to develop a deeper understanding of the COVID-19 pandemic's effects on entrepreneurs, entrepreneurial firms, entrepreneurial environments and responses especially regarding the success and failure of entrepreneurial ventures during the pandemic. Thus, the authors built a dataset with 10 survey waves from 2020 to 2021, with an average of 7,000 Brazilian entrepreneurial ventures (SMEs) in each wave of the survey. The authors used this data to examine their performance and survival.FindingsThe findings suggest that the increase of the COVID-19 virus contagion per se did not severely affect entrepreneurial ventures' performance and survival. However, the worsening of the COVID-19 pandemic did weaken entrepreneurial ventures' performance and survival. Moreover, the findings suggest that entrepreneur education has an inverted U-shaped relationship with entrepreneurial ventures performance. Indigenous, Brown and Black entrepreneurs experienced decreased entrepreneurial ventures survival compared to White entrepreneurs. While entrepreneurial ventures that adopted digital technologies and had access to loans increased their performance and survival during the COVID-19 pandemic, those who failed in these aspects experienced negative performance and survival effects. Thus, although the COVID-19 pandemic severely impacted many entrepreneurial ventures and even forced some to close, others survived and even prospered during the environmental shock.Originality/valueThe paper sheds light on a little understood topic: entrepreneurial venture success and failure in the COVID-19 pandemic.

Back to work? How employers perceive applicants’ experience of entrepreneurial failure

ABSTRACT Recent research on entrepreneurial failure has started to investigate the impact of failure on entrepreneurs and how this influences their motivation and willingness to engage in subsequent entrepreneurial ventures. We approach this topic from an alternative perspective, focusing on former entrepreneurs seeking to return to paid work and exploring how their experience of venture failure is perceived and appraised by employers in the recruitment process. Such perceptions matter because employers are gatekeepers to the employment market and thus their appraisals influence how easily former entrepreneurs can re-integrate themselves in the paid workforce. We conducted 30 interviews with employers in growing human-capital intensive companies in Sweden, asking these recruiters about their perceptions of former entrepreneurs and how their evaluations affected their hiring decisions. Conceptually, we frame our study using a process model of stigmatization by nuancing this model with fine-grained analyses of employers’ perceptions and appraisals of applicants’ entrepreneurial failure experiences in the recruitment process. This analysis identifies some of the key conditions that lead employers either to value or devalue an applicant’s experience of entrepreneurial failure, further indicating the implications of this finding for entrepreneurs’ careers and prospects of gaining paid employment.

A mobile messaging-based conversational agent-led stress mindset intervention for New Zealand small-to-medium-sized enterprise owner-managers: effectiveness and acceptability study

ABSTRACT The rising surge of work-related stress is particularly severe among small-to-medium-sized enterprise (SME) owner-managers, and has been linked to an array of deleterious consequences, such as burnout, venture failure, and suicide. Sadly, the majority of available stress management interventions appear to be ill-suited to owner-managers. Prior work, however, suggests that mobile phone-based messaging conversational agents (CAs) may hold promise for delivering mental health interventions to underserved groups such as the self-employed. Furthermore, recent research with SMEs finds that altering one's stress mindset – beliefs about the extent to which stress might be enhancing or debilitating can change one's responses to stress. Against this backdrop, the present study assessed the effectiveness and acceptability of a first-of-its-kind mobile messaging-based conversational agent-led stress mindset intervention (mCASMI) for Aotearoa New Zealand SME owner-managers. The mCASMI was delivered over 4-days via WhatsApp Messenger. The results confirmed that the mCASMI was successful in altering participants' mindsets about stress, in conjunction with self-reported improvements in productivity and work performance. The owner-managers who received the intervention were engaged, adherent, and reported a high degree of rapport with the CA. Though preliminary, these findings extend the state-of-the-art and suggest progressing with a larger-scale feasibility study.

Founders’ Political Ties, Legal Registration and New Venture Failure

Founders’ Political Ties, Legal Registration and New Venture Failure

Strategic organizational resilience during and after the COVID-19: Case study of Western Balkans

The COVID-19 pandemic has affected businesses globally. It swept the world like a wave, changing and adapting economies around the world. However, many businesses have shown remarkable resilience in the face of this crisis, adapting to changing circumstances and finding new ways to serve their customers. To build resilience, people need to understand organizational change. In this study, the authors only explained the organizational aspects of resilience in the Western Balkans. They emphasized that there is a lack of research investigating resilience in the context of venture failure due to the inability to respond to the demands of crisis conditions. Therefore, they study the association between corporate responses that we consider particularly important during this crisis, in relation to labor practices, to determine whether companies experienced less-negative responses to the crisis during the market collapse. The aim of these studies is to highlight the importance of the need to improve resilience after the COVID-19 crisis and to determine strategies for achieving it. For this purpose, extensive literature was used, which represents the theoretical framework of the research. Based on their research, the winners in the changing business environment will be unbridled firms that respond to challenges and create new opportunities.

Critical factors influencing the failure of joint ventures in the South African construction industry: a confirmatory factor analysis approach

PurposeJoint ventures (JVs) serve as a viable tool in mitigating some of the challenges posed to the effective delivery of construction projects. However, JVs are highly susceptible to failure in most developing countries. Therefore, this study seeks to unravel the critical factors influencing the failure of JVs in the South African construction industry.Design/methodology/approachA quantitative approach was adopted for the study using a well-structured questionnaire as the instrument for data collection. Respondents for the study were built environment professionals in Gauteng province in South Africa. Data elicited from respondents were analyzed using a four-pronged process which included descriptive statistics, one sample t-test, exploratory factor analysis and confirmatory factor analysis.FindingsResulting from the analysis conducted, four critical components emerged as the major factors influencing the failure of JVs in the South African construction industry, which are inefficient financial framework, divergent organizational culture, poor project governance and inadequacies from project stakeholders.Practical implicationsThe outcome of this study presents a roadmap for stakeholders in the construction industry with the requisite knowledge of the critical factors leading to the failure of JVs, consequently providing a clear path for the successful delivery of JV mandates.Originality/valueEvidence from literature suggests that several studies have been conducted on the various aspects of JVs in the South African construction industry; however, none has focused on the leading factors attributed to the failure of JVs. Also, the findings of this study cultivate a good theoretical platform for future studies on JVs.

It ain’t over till it’s over: exploring the post-failure phase of new ventures in business networks

Purpose To the best of the authors’ knowledge, this paper is a first attempt to deal with the phenomenon of new venture failure from the business network perspective of the Industrial Marketing and Purchasing (IMP) Group. In particular, this study aims to explore the post-failure phase of a new venture to investigate what happens to the new venture’s resources and relationships in the aftermath of its failure and the role of the entrepreneur in this process. Design/methodology/approach The paper builds on an explorative multiple case study of two failed new ventures, unfolding the failure and post-failure phase: evidence from both cases is confronted and discussed. Findings This study shows that the post-failure is a complex phase of recombination of activities and residual resources that may lead to new business opportunities. It is discussed that residual resources influence the direction and extent of post-failure activities in terms of restrictions as well as opportunities to restart new projects or ventures. It is also shown how the entrepreneur deals with the “business remains”. Originality/value While much attention has been devoted to new ventures’ failure, the paper focuses on the post-failure phase, an almost neglected topic in industrial marketing research. This study sheds some new light upon the journey through which entrepreneurs come to develop the set of resources, activities and relationships that are not only key to the establishment of the venture but also relevant in the complex and intricate trajectories of post-failure.

Two heads are safer than one: Changes in CEO duality and venture failure

We study the dynamics of a major design choice in the governance of ventures: whether to distribute power at the top of the venture between a separate CEO and board chair. We propose that ventures are more likely to combine (separate) their CEO and chair positions when operational performance is poor (strong), demonstrating behavior in line with the threat rigidity thesis. Paradoxically, however, ventures would most benefit from a separate CEO and board chair when operational performance is poor. Empirical analysis of data from the Australian mining industry offers general support for our theory, with some interesting nuances. We discuss the implications of our findings for emerging conversations in the literatures on venture boards, boards of directors, and entrepreneurship.

A 15-year partnership between UK coastal scientists and the international beach lifeguard community

Drowning is a leading cause of unintentional fatalities around the world, yet on beaches is often preventable through public education campaigns and intervention activities from lifeguards. In 2006, the UK beach lifeguarding community approached the Coastal Processes Research Group (CPRG) at University of Plymouth, UK, with a need to better understand the key hazards on UK beaches and how to foresee and manage the associated risks. In some cases there simply was not sufficient scientifically-robust understanding of certain hazards (for example rip currents) available for lifeguard managers to make objective, data-driven decisions on how to manage them. This paper documents the resulting 15-year body of work, and reflects upon the education, outreach, and other research impacts that have been created, and lessons learned along the way. By furthering fundamental coastal processes understanding of such things as beach classification and rip current dynamics, as well as applying science to challenges such as predicting beach life-risk and times of peak bathing hazard, the ongoing collaboration between lifeguards and academics continues to inform beach safety management in a number of countries around the world. Initiating research with clear aims and objectives that are driven by, and developed in conjunction with, the end-user, as opposed to starting with outcomes prescribed to the end-user by academics, has been an important factor in the success (or failure) of these scientific ventures. CPRG's research activities in the field of beach safety has been scientifically rewarding and have achieved significant impacts. We attribute this to: (1) sustained level of high-quality research; (2) continued effort spent on building long-term relationships with end-users; (3) co-creation of dissemination material and tools; (4) acceptance that it takes time and effort to achieve research impact; and (5) critically evaluating and reflecting on the research impacts. Ultimately, the ongoing collaboration has contributed to a ‘ continuing trend of decline in accidental fatalities around our coastlines’, and such collaborations in other parts of the world continue to play a vital role in reducing coastal drowning globally. • Understanding physical beach hazards is needed to underpin beach lifeguard decision-making. • Long-term collaborations with the lifeguarding community improved beach hazard science. • Early and ongoing engagement with end-users enhanced impact of research outcomes.

A Framework of Entrepreneurial Competencies: A Case Study of Cameroon

Successful entrepreneurial venture heavily depends on exogenous and endogenous factors that cannot be ignored. However, a lack of knowledge and understanding of endogenous factors such as entrepreneurial competencies has led to the failure of many ventures. Thus entrepreneurial competencies must be taken into consideration in planning a venture. By using the competency approach, this study identified the entrepreneurial competencies needed for a successful venture through interviews, observations, and documents. This case study utilized Merriam’s data analysis process to identify the required entrepreneurial competencies for successful ventures. Fourteen successful entrepreneurs served as participants and were selected through purposive and snowball sampling. This study was conducted in Younde andDouala, Cameroon. The findings revealed seven entrepreneurial competencies: opportunity-seeking competency, learning competency, relationship competency, managerial competency, market –competition competency, and technical competency, concluding that entrepreneurial competencies are vital for a successful venture.

Framework for Assessing the Integration of Ethics in the Design of Impact Investment Ventures

Impact investment ventures are growing in the modern economy. However, the recent failures of some impact investment ventures are a cause for concern. Unfortunately, our concern about the ethicality of these kinds of social exchanges seem to emerge when it is too late. Namely, we become concerned about lack of ethics when a venture has failed or is collapsing. A better approach would be for us to have a means to proactively assess and improve the degree to which the arrangements and practices of a social exchange meet ethical standards. Whereas much work has been done to equip social ventures to evaluate their impacts, little work has been done to create frameworks that could be used to assess the degree to which social exchanges integrate ethical practices in their designs. This paper proposes such a framework. For illustration purposes, the proposed framework would also be used to evaluate the One Acre Farm, an impact investment venture in Africa.

On the consequences of scarcity mindset: How ‘having too little’ means so much for ethnic venture failure

Drawing on the psychological concept of scarcity mindset as a lens, we explore UK-based ethnic entrepreneurs' accounts of their behaviors and choices to theorize ethnic business venture failure. Our findings suggest the constraints of ‘having too little’ entrepreneurial resources can induce three organizing tensions in organizing, community embeddedness, spatial and segment spawning, and dispositional optimism––which may operate in combination or serially to precipitate ethnic venture failure. Our findings contribute to research on conflicting demands in entrepreneurship by showing how resource constraints, sometimes played out in the form of enduring inequalities within markets and society-at-large stymies the conversion of contradictory yet mutually constituting demands in organizing into potentially productive outcomes.

Role of Contemporary Management Accounting Practices in Reducing Customer Uncertainty in Entrepreneurial Startup Firms

Many failures of new ventures are an outcome of the inability of the entrepreneurs to deal with uncertainties. Uncertainties impact almost all different stages of the entrepreneurial process, and the success or failure of firms depends upon how entrepreneurs deal with uncertainties before acting on an opportunity. Uncertainties in early-stage entrepreneurship can include customer, competitor, supplier, technological and resource aspects. An entrepreneurial firm must deliver value along the dimensions that matter most to its customers. Thus, Entrepreneurial firms should focus their scarce resources on the dimensions of value that most matter to customers. Creation of value for customers is a critical task for entrepreneurs, particularly when developing new products and services or starting new businesses. In addition, successful entrepreneurs understand the needs of their customers. Understanding the needs and wants of the targeted customer will help businesses to innovate and grow. On the other hand, Ignoring customer needs and not seeking their feedback can prove to be fatal mistake for most startups. Many changes in the contemporary business environment have caused significant changes in management accounting. One of the most important trends in management accounting is greater focus on customer (customer orientation). Consequently, a hallmark of this era is the introduction of a diverse set of new managerial accounting practices that focus primarily on promoting value for customers. These practices can help in reducing customer uncertainty in entrepreneurial startups. This research focus on how to use current management accounting practices to help in reducing customer- related uncertainty in startup entrepreneurship. In attempting to identify the role of current management accounting practices in reducing customer-related uncertainty in startup entrepreneurship, the researcher will use the constructive approach.

Equity Crowdfunding Founder Teams: Campaign Success and Venture Failure

AbstractThis paper examines whether solo founders are more likely to succeed in an initial equity crowdfunding (ECF) campaign and are subsequently less likely to fail than founder teams for a large sample of initial ECF campaigns conducted on the three largest UK platforms: Crowdcube, Seedrs and SyndicateRoom. The results show that solo founders have a lower probability of conducting successful initial ECF offerings than founder teams, and are also more likely to fail thereafter. The implication that founder teams enjoy more success is due to the fact that the quality of their human capital may likely attract professional investors who can act as a certification effect. Likewise, the monitoring role of professional investors helps to minimize moral hazard concerns and thus lowers the likelihood of failure for ECF founder teams. The results also establish that founder team human capital characteristics are significant determinants of initial ECF campaign outcomes and venture failure.

国際建設合弁事業の成功・失敗要因に関する研究‐レビュー論文

国際建設合弁事業の成功・失敗要因に関する研究‐レビュー論文

The Role of Failure in the Entrepreneurial Process: A Systematic Literature Review

Failure is a crucial event that can occur at any time during the entrepreneurial/start-up process. Understanding what influences the failure or survival of new ventures is increasingly attracting the interest of scholars, practitioners, and policymakers, mainly because of the role that startups play in innovation. Studying failure events presents a series of challenges that scholars should bear in mind when approaching this topic, starting from the definition of terms to the lack of data to analyze such events. The literature on business failures is scattered among different fields of research and lacks a comprehensive framework. We address this gap performing a systematic literature review. 74 papers focusing on new ventures’ failure have been reviewed and analyzed to identify the main causes of failure. In doing so, we identify four main categories of causes of new venture failure. Namely, I) resources, with a specific focus on human and financial capital; II) strategic/managerial decisions; III) product-related aspects; and IV) contextual/environmental-related issues. By providing an up-to-date systematization of recently published contributions on the topic, we aim to provide practical implications for entrepreneurs/practitioners and future research directions to researchers in the field.