Cognitive Factors Affecting Serial Entrepreneurs Learning from Failure

Document Type : Research Paper

Authors

1 Department of Management, College of Farabi, University of Tehran, Tehran, Iran.

2 Department of Business, College of Farabi, University of Tehran, Tehran, Iran

Abstract

Objective: Failure plays a crucial role in entrepreneurial learning and is a common issue among entrepreneurs. However, in ecosystems like Iran, insufficient attention has been given to this matter. Understanding the causes and mental underpinnings of failure, particularly among serial entrepreneurs, can guide the scientific and business communities towards solutions that facilitate the recovery of entrepreneurs' identity and emotion after failures. This lack of scientific and practical knowledge prompted this study to investigate the cognitive origins of learning from failure to gain a deeper understanding.
Method: In this study, we adopted an inductive-deductive approach and, specifically, employed a meta-synthesis of 40 articles to identify the cognitive factors that influence learning from failure. We then prioritized these factors through a survey of 10 serial entrepreneurs selected using a purposive sampling method. Expert survey data were used to analyze the quantitative data and comprehend the key factors affecting learning from failure among serial entrepreneurs, utilizing the best-worst method.
Results: The results, based on the theoretical foundation, reveal that learning from entrepreneurial failure is influenced by 24 distinct factors. After prioritizing these factors, "previous experience" emerged as the most significant (best) factor, while "opportunity temptation" was identified as the least important (worst) factor. According to the findings, failure can serve as a valuable capital for entrepreneurs, provided they confront their mistakes and learn from them. Factors like the fear of failure, entrepreneurial Alertness, and entrepreneurial humility also play essential role.
Conclusion: The results suggest that post-failure achievements are influenced by new experiences and information. Entrepreneurs' prior experiences and their fear of failure have a substantial impact on learning from failure. Prior experience and knowledge help entrepreneurs identify new opportunities realistically, reducing their fear of failure and leading to subsequent success. Additionally, entrepreneurs' learning is influenced by entrepreneurial humility. In general, individuals who are humbler are more willing to face failures realistically, accepting areas that need improvement and subsequently enhancing their chances of success in future endeavors.
This paper introduces a cognitive approach to understanding the process of learning from the failures of serial entrepreneurs. This fresh perspective highlights the significant role of prior experiences in shaping entrepreneurs' attitudes towards failure. Furthermore, comprehending the relationships between these factors can greatly contribute to the success of entrepreneurs in re-entering the entrepreneurial arena after Failures, as well as aiding in their emotional and identity recovery.

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References

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