Insights on Entrepreneurial Failure: An Empirical Investigation of Ireland and Mexico

18 Pages Posted: 8 Nov 2019 Last revised: 10 Nov 2019

See all articles by Francisco Navarrete-Báez

Francisco Navarrete-Báez

University of Atemajac Valley - Department of Research

Rebecca Purcell

Mary Immaculate College - Department of Mathematics and Computer Studies

Date Written: May 31, 2019

Abstract

This study aims to deepen the understanding of entrepreneurial failure. Data from the General Entrepreneurship Monitor is used to determine the rates of entrepreneurial failure in Ireland and Mexico over the period 2011 to 2015. Ireland and Mexico provide rich contexts for the study of entrepreneurial failure. In 2011, Ireland and Mexico had similar rates of entrepreneurial failure, at 2.8% and 3.1% respectively. By 2015, the rate of entrepreneurial failure in Mexico had increased to 4.9%, a comparatively high rate, while in Ireland entrepreneurial failure had decreased to 2.1%. To date, studies on entrepreneurial failure focus on poor financial performance as the primary driver of entrepreneurial failure. Few studies look beyond poor financial performance, to examine other factors in the entrepreneurial environment that may determine entrepreneurial failure. In this study, descriptive and inferential statistical analyses are used to examine the impact of macro-level framework condition variables, and micro-level behaviour and attitudinal variables from the Irish and Mexican entrepreneurial environment on entrepreneurial failure. The findings from this investigation support the extrapolation of insights on entrepreneurial failure. The authors, determine that in particular, the availability of entrepreneurial finance, targeted support for entrepreneurial firms in the business services sector, with the potential to create innovative and export-oriented outputs, and policy aimed at reducing the bureaucratic burden on entrepreneurship, are important elements in an entrepreneurial system which seeks to support entrepreneurial survival, and limit failure.

Keywords: entrepreneurial exit, entrepreneurial failure, IGlobal Entrepreneurship Monitor (GEM), Ireland, Mexico

Suggested Citation

Navarrete-Báez, Francisco and Purcell, Rebecca, Insights on Entrepreneurial Failure: An Empirical Investigation of Ireland and Mexico (May 31, 2019). OIDA International Journal of Sustainable Development, Vol. 12, No. 05, pp. 43-60, 2019. Available at SSRN: https://ssrn.com/abstract=3481903

Francisco Navarrete-Báez (Contact Author)

University of Atemajac Valley - Department of Research ( email )

Guadalajara, 45050
Mexico

Rebecca Purcell

Mary Immaculate College - Department of Mathematics and Computer Studies ( email )

South Circular Road
Limerick
Ireland

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