Entrepreneurial Venture Failure Experiences : An analysis into causes, costs, and outcomes of venture failure

Abstract: Research on entrepreneurship focuses on success which ignores the high failure rate of new ventures. Many new ventures fail so how entrepreneurs deal with it when their venture fails? Successful entrepreneurs praising the advantages of failure as a valuable teacher. The result of failure is regularly filled with economic, social, psychological, and physical health disorder. The aim of this research is to assessment venture failure experiences for entrepreneurs, from the instant result through to recovery for coping with entrepreneurial failure and exit for impact of the closed venture. In this research, aspects of life affected by entrepreneurial failure examine economically, socially and psychologically in highlighting factors that may influence the amount of costs of failure. Next, the research describes how entrepreneurs learn from failure. It presents on the outcomes of venture failure, including coping with failure and recovery together with cognitive and behavioral outcomes. The main objective of the research study is to understand the failure from entrepreneurs who have experienced it and also to make a theoretical framework of failure based on entrepreneurial venture failure experiences. Every entrepreneur starts up a venture with high expectations of achieving success. Failure can be emotionally disturbing, devastating, painful, distressing and costly for the entrepreneur who may have to aspect the stigma of failure and the loss of reputation. The entrepreneur can get involved in grief, heartache, anxiety, depression, shame, rejection and discouragement (Politis & Gabrielsson, 2009). The purpose of the research is to investigate how entrepreneurs realize and react to venture failure. Moreover, entrepreneurs are looking for positive aspects of failure as enhancing experiences that help their coping with entrepreneurial failure, learning from failure, the willingness to begin a new venture and also trigger changes in upcoming decision-making. The purpose of the research is to take a view of the existed experience of failure, taking into consideration impact from the entrepreneurship.