The Impact of Business Failure Experience and Learning from Failure on New Venture Performance of Entrepreneur - Case Study of Qom Province

Karimi, Asef; Mollaei, Mohammad Hamid; Mohammadian, Behzad; Zargaran Khouzani, Fatemeh

doi:10.22059/jed.2021.317684.653588

The Impact of Business Failure Experience and Learning from Failure on New Venture Performance of Entrepreneur - Case Study of Qom Province

Document Type : Research Paper

Authors

¹ Assistant Prof., Faculty of Management and Accounting, Farabi Campus, University of Tehran, Qom, Iran.

² MSc. Student of Entrepreneurship Management, Farabi Campus, University of Tehran, Qom, Iran.

³ Ph.D in Behavioral Management from the University of Tehran, Tehran, Iran.

⁴ Ph.D. Candidate in Business administration, Faculty of Management, Allameh Tabataba'i University, Tehran, Iran.

10.22059/jed.2021.317684.653588

Abstract

Although entrepreneurship is fraught with failure, in an economy like Iran, starting a new venture performance after a failure is very difficult. Therefore, the issue of learning from failure is more important for Iranian entrepreneurs. This research tries to investigate the effect of failure experience and learning from failure on the performance of new investment and has been done in a quantitative, survey and descriptive method with a practical purpose. The statistical population of this research is entrepreneurs active in different industries of Qom province in 2019. By simple random sampling method, a questionnaire was sent to all entrepreneurs in likert scale and finally 100 questionnaires were analyzed by structural equation modeling method using SmartPLS 2.0 software. The standard questionnaire has 38 questions. Validity was confirmed by academic experts and reliability was confirmed by Cronbach's alpha coefficient of 0.748. The results show that the majority of entrepreneurs have experience of failure and agree that they can start a new venture performance by learning from failure. According to the results, it can be said that learning and experience of failure in entrepreneurial business are very intertwined and in fact experience of failure plays a key role for learning entrepreneurship, but in order to develop entrepreneurial businesses and according to the Iranian economy & culture is recommended that common entrepreneurial failures should be collected, and learning from failure experience of oneself should be replaced by vicarious failure experience and be taught in university.

Keywords

20.1001.1.20082266.1400.14.2.7.6

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https://www.gemconsortium.org/economy-profiles/iran-2