A Meta-Synthesis on Determinants of Re-entrepreneurship by Failed Entrepreneurs

Document Type : Research Paper

Authors

1 Department of Industrial Management, Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Iran.

2 Department of Science and Technology Policy, Faculty of Economics and Administrative Sciences, University of Mazandaran, Babolsar, Iran.

3 Assistant professor, School of Management, Economics and Progress Engineering, Iran University of Science and Technology

10.22059/jed.2024.351388.654097

Abstract

Objective: One of the most critical challenges that an entrepreneur may encounter is failure, resulting in the closure of a business that fails to meet the expected financial goals. Learning from the experience of entrepreneurial failure can offer valuable opportunities for change and motivate entrepreneurs to re-enter the industry. Entrepreneurs can learn from their failures, enhance their ability to recognize and pursue opportunities, and consequently improve their performance when re-entering entrepreneurship. Research on entrepreneurial performance has primarily focused on first-time entrepreneurship, with less attention given to entrepreneurs with prior entrepreneurial experience who start a new business after a setback. Existing research in the field of entrepreneurship overlooks the significance of investigating failure scenarios, but turning failure into a "springboard for success" is a valuable topic that can inspire and support the enthusiasm of entrepreneurs, increase the likelihood of success in entrepreneurship, and encourage ongoing entrepreneurial endeavors. This topic has received sporadic attention from various researchers, but a comprehensive framework for categorizing these factors has not yet been provided. The aim of this study is to identify and categorize the factors influencing the re-entrepreneurship of failed entrepreneurs using a qualitative approach. Therefore, the primary question of this research is: What are the determinants of re-entrepreneurship by failed entrepreneurs?
Method: This research is applied in terms of purpose, and utilizes a library research method that relies on secondary data. The approach to the study of primary data is comprehensive and interpretive. The Sandelowski's meta-synthesis method was employed to carry out this research, and relevant studies from reputable international scientific databases were reviewed. The quality of the identified articles was assessed using various criteria, including the Critical Appraisal Skills Programme. Ultimately, 38 articles published between 1991 and 2020 that met the criteria were identified and analyzed.
Findings: Content analysis of these articles revealed that the factors influencing re-entrepreneurship can be categorized into two main components: environmental and internal levels. At the environmental level, these factors include environmental learning, strategy and leadership, policies and support, human capital, culture, markets, and financing. At the internal level, they include individual learning and self-assessment, psychological characteristics (personality, motivational, and cognitive), and demographic characteristics.
Conclusion: Current literature on entrepreneurial failure is inconclusive and contradictory, emphasizing the need for further research. Existing studies mainly examine the re-entry experiences of entrepreneurs after failure, leaving other aspects of re-entry, such as context and outcomes, poorly understood. A deeper understanding of the experiences, context, and outcomes of entrepreneurial re-entry could help failed entrepreneurs make significant changes in their approach to re-entry decision-making

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Main Subjects

References

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