Failure and Entrepreneurship: A Behavioral Perspective

Posted: 10 Oct 2007 Last revised: 23 Oct 2007

See all articles by Tsvi G. Vinig

Tsvi G. Vinig

University of Amsterdam - Department of Business Studies (BS)

F. Souren

University of Groningen

Date Written: July 2006

Abstract

This paper investigates the way entrepreneurs learn when confronted with failure and setback. Its focus is on the potential benefits of failure on entrepreneurial development. Based on a research on experiential learning theory and bounded rationality, we propose a model of entrepreneurial development that integrates experience from failed ventures, and organizational behavior. The results of the research suggest that most entrepreneurs use accommodative learning - learn through reliance on practical experience, intuition, and imagination. Accommodators consider affordable failure that limits wide range of possibilities therefore reduce uncertainty. Learning styles seem to be closely related to the way entrepreneurs deal with failures, and the strategies they pursue. Whether failure can be considered constructive or destructive for entrepreneurial development depends probably on the diverse learning styles that arise from differing goal orientations.

Keywords: Entrepreneurship, Entrepreneurial learning, Failure, Learning style

Suggested Citation

Vinig, Tsvi G. and Souren, F., Failure and Entrepreneurship: A Behavioral Perspective (July 2006). Available at SSRN: https://ssrn.com/abstract=1020570

Tsvi G. Vinig (Contact Author)

University of Amsterdam - Department of Business Studies (BS) ( email )

Amsterdam Graduate Business School
Roetersstraat 11
Amsterdam, 1011 WB
Netherlands

F. Souren

University of Groningen ( email )

P.O. Box 800
9700 AH Groningen, Groningen 9700 AV
Netherlands

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