HOW DO WE PERCEIVE FAILURE? INTRODUCING THE INTEGRATIVE MODEL OF ENTREPRENEURIAL FAILURE Eri Besra (1) Hafiz Rahman (1) Nurhayati (2)
(1) Department of Management
Faculty of Economics
Universitas Andalas
Padang Indonesia
(2) Padang State Polytechnic
Padang Indonesia
Abstract
This paper aims to introduce and to discuss an integrative model of entrepreneurial failure experienced by nascent entrepreneurs. Previous models on entrepreneurial failure mainly described reasons and factors that caused entrepreneurial failure from individual dan firm levels with less elaboration about possible follow-up of that failure. In difference, this paper tries to add our understanding regarding entrepreneurial failure by elaborating its process, the possible consequence and follow up of that failure as well as its relationship to the concept of serial entrepreneurship.
The study is as qualitative study and uses exploration of a possible integrative model that can figure the process of entrepreneurial failure experienced by nascent entrepreneurs. The model is developed based on previous quantitative study with 1541 nascent entrepreneurs in West Sumatra, Indonesia who have experienced entrepreneurial failure.
The model introduces entrepreneurial failure as series of process which is sourced from individuals internalities and externalities. As a process, it has also brought consequences and follow-up of that failure to nascent entrepreneurs.
The introduction of this integrative model of entrepreneurial failure demonstrates the originality and value of this study. As other models of entrepreneurial failure concentrate their elaboration on the sources and reasons of failure, this paper concentrates more on entrepreneurial failure as a process, in which consequences and follow-up of failures would also be elaborated as part of the process.
Keywords: entrepreneurial failure, individuals internalities and externalities, integrative model
Topic: Strategic Management, Entrepreneurship and Contemporary Issues
