Asia-Pacific Journal of Business Venturing and Entrepreneurship (벤처창업연구)

The Korean Society of Business Venturing (한국벤처창업학회)
권호 표지

The Effects of Entrepreneurs' Failure Experience and Re-education on Subsequent Venture: Moderating Effect of Entrepreneurial Motivation

기업가의 창업 실패 경험과 재교육이 재창업에 미치는 영향: 창업 동기의 조절효과를 중심으로

  • Kim, Nami (Korea University Business School) ;
  • Lee, Jongseon (Korea Small Business Institute) ;
  • Kim, Dongsoo (Korea Advanced Institute of Science and Technology(KAIST) College of Business)
  • Received : 2020.02.21
  • Accepted : 2020.04.23
  • Published : 2020.04.30
Download PDF
⟨ Previous Next ⟩

Abstract

While venture creation is considered to be of high social and economic importance, entrepreneurial outcomes are inherently uncertain and that failure is thus a central feature of entrepreneurship. Although failure in entrepreneurship is pervasive and critical, the impact of prior failure on future entrepreneurship has not received significant attention in the literature. Although failure is a painful and costly experience for entrepreneurs, it can also provide a powerful learning opportunity for those experiencing it. It has been argued that entrepreneurial failure is not just a individual problem but a matter of social concern. As part of the restarting business support system, entrepreneurial re-education program is provided to support failed entrepreneurs. The aim of this study is to examine the effects of failed entrepreneurs' prior entrepreneurial experience and re-education on subsequent venture creation. Moreover, this study also examined the moderating effects of entrepreneurial motivation. For the analyses, we surveyed the entrepreneurs who tried to re-start the subsequent business after the entrepreneurial failure through the "Revitalization Center for Strained Entrepreneur". The result found that failed entrepreneurs who learned a lot from their previous founding experience were more likely to re-start their subsequent business. The failed entrepreneurs who learned a lot from entrepreneurial re-education program were more likely to re-start their subsequent business. Moreover, the positive effect of failed entrepreneurs' previous founding experience and entrepreneurial re-education program on re-starting subsequent business was found to be weaker when entrepreneurial extrinsic motivation was high.

사회적으로 창업에 대한 관심이 고조되고 있지만 사실 창업은 실패할 가능성이 높게 내포되어 있는 위험한 도전이기도 하다. 창업 연구에 있어 실패는 필연적으로 연구되어야 할 부분이지만, 기본적으로 실패를 회피하고 싶고 선호하지 않는 경향 때문에 상대적으로 폭넓게 연구되어 오지 못했다. 실패는 기업가에게 있어 고통스럽고 큰 비용을 수반하는 경험이지만 긍정적으로 연결시킬 수만 있다면 성공으로 나아가기 위한 하나의 관문이자 촉매제로 작용할 수 있는 값진 경험이기도 하다. 창업 실패를 경험한 기업가에게 사회적 차원의 도움이 필요하다는 주장이 제기되며 최근 재창업 지원제도의 일환으로 재창업 교육 등을 통해 재기하고자 하는 창업가들에게 도움을 주고자 하고 있다. 본 연구에서는 실패를 경험한 기업가에 주목하여, 실패 경험을 통한 학습과 사회적 지원책으로의 재창업 교육이 재창업에 어떠한 영향을 미치는지 살펴보고자 하였다. 더불어 기업가의 개인적 요인으로 기업가의 행동에 큰 영향을 미친다고 알려져 있는 창업 동기에 주목하여, 실패 경험이 재창업에 미치는 영향 및 교육이 재창업에 미치는 영향에 기업가의 창업 동기가 어떠한 효과를 주는지 고찰해보고자 하였다. 분석을 위하여 재기중소기업개발원의 실패 후 재창업을 계획한 연속 창업가들을 대상으로 설문을 통해 데이터를 수집하였다. 분석 결과, 이전 창업 경험으로부터 학습효과가 큰 기업가일수록 재창업 할 확률이 높았으며 재창업 교육으로부터 학습효과가 큰 기업가일수록 재창업할 확률 역시 높은 것으로 나타났다. 또한 창업의 외재적 동기가 클수록 이러한 이전 경험과 재창업 교육의 학습효과가 재창업에 미치는 긍정적 영향은 줄어드는 것으로 나타났다.

Keywords

References

  1. Aldrich, H. E., & Martinez, M. A.(2001). Many are called, but few are chosen: An evolutionary perspective for the study of entrepreneurship. Entrepreneurship Theory and Practice, 25(4), 41-56 https://doi.org/10.1177/104225870102500404
  2. Arabsheibani, G., de Meza, D., Maloney, J., & Pearson, B.(2000). And a vision appeared unto them a great profit: evidence of self-deception among the self-employed. Economics Letters, 67(1), 35-41. https://doi.org/10.1016/S0165-1765(99)00242-6
  3. Antonioli, D., Nicolli, F., Ramaciotti, L., & Rizzo, U.(2016). The Effect of Intrinsic and Extrinsic Motivations on Academics' Entrepreneurial Intention. Administrative Sciences, 6(15), 1-18.
  4. Ajzen, I.(1991). The theory of planned behaviour. Organizational Behaviour and Human Decision Processes, 50(2), 179-211. https://doi.org/10.1016/0749-5978(91)90020-T
  5. Autio, E. H., Keeley, R., Klofsten, M., Parker, G., & Hay, M.(2001). Entrepreneurial Intent among Students in Scandinavia and in the USA. Enterprise and Innovation Management Studies, 2(2), 145-160. https://doi.org/10.1080/14632440110094632
  6. Bae, Y. I., Lee, S. M., & Joen, J. E.(2013). Study on restart activation and successful rechallenging environment. Seoul: Korea Small Business Institute.
  7. Bau, M., Sieger, P., Eddleston, K., & Chirico, F.(2017). Fail but Try Again? The Effects of Age, Gender, and Multiple-Owner Experience on Failed Entrepreneurs' Reentry. Entrepreneurship Theory and Practice, 41(6), 909-941. https://doi.org/10.1111/etap.12233
  8. Cardon, M. S., Zietsma, C., Saparito, P., Matherne, B. P., & Davis, C.(2005). A tale of passion: New insights into entrepreneurship from a parenthood metaphor. Journal of Business Venturing, 20(1), 23-45. https://doi.org/10.1016/j.jbusvent.2004.01.002
  9. Cardon, M. S., Stevens, C., & Potter, D. R.(2011). Misfortunes or mistakes? Cultural sensemaking of entrepreneurial failure. Journal of Business Venturing, 26(1), 79-92. https://doi.org/10.1016/j.jbusvent.2009.06.004
  10. Carsrud, A. L., Olm, K. W., & Thomas, J. B.(1989). Predicting Entrepreneurial Success; Effects of Multi-Dimensional Achievement Motivation, Levels of Ownership, and Cooperative Relationships. Entrepreneurship and Regional Development, 1(3), 237-244. https://doi.org/10.1080/08985628900000020
  11. Carsrud, A., Brannback, M., Elfving, J., & Brandt, K.(2009). Motivations: The Entrepreneurial Mind and Behavior, in Understanding the Entrepreneurial Mind: Opening the Black Box. (Eds.), Carsrud, A. & Brannback, M., 141-166, Heidelberg: Springer.
  12. Carsrud, A., & Brannback, M.(2011). Entrepreneurial motivations: What do we still need to know?. Journal of Small Business Management, 49(1), 9-26. https://doi.org/10.1111/j.1540-627X.2010.00312.x
  13. Cassar, G.(2006). Entrepreneur opportunity costs and intended venture growth. Journal of Business Venturing, 21(5), 610-632. https://doi.org/10.1016/j.jbusvent.2005.02.011
  14. Cassar, G.(2014). Industry and startup experience on entrepreneur forecast performance in new firms. Journal of Business Venturing, 29(1), 137-151. https://doi.org/10.1016/j.jbusvent.2012.10.002
  15. Cave, F., Eccles, S., & Rundle, M.(2001). An exploration of attitudes to entrepreneurial failure: A learning experience or an indelible stigma?. Paper presented at the Babson College Entrepreneurship Research Conference, Sweden, Jonkoping International Business School.
  16. Coelho, P. R. P., & McClure, J. E.(2005). Learning from failure. Mid-American Journal of Business, 20(1), 13-20.
  17. Cope, J.(2005). Toward a dynamic learning perspective of entrepreneurship. Entrepreneurship Theory and Practice, 29(4), 373-397. https://doi.org/10.1111/j.1540-6520.2005.00090.x
  18. Cope, J.(2008). The impact and Outcomes of venture failure: An entrepreneurial learning perspective. Frontiers of Entrepreneurship Research, 28(4), 4.
  19. Cope, J.(2011). Entrepreneurial learning from failure: An interpretative phenomenological analysis. Journal of Business Venturing, 26(6), 604-623. https://doi.org/10.1016/j.jbusvent.2010.06.002
  20. Crant, J. M., & Bateman, T. S.(1993). Assignment of credit and blame for performance outcomes. Academy of Management Journal, 36(1), 7-27. https://doi.org/10.2307/256510
  21. DeTienne, D. R., & Chirico, F.(2013). Exit strategies in family firms: How socioemotional wealth drives the threshold of performance. Entrepreneurship Theory and Practice, 37(6), 1297-1318. https://doi.org/10.1111/etap.12067
  22. Dyer, G.(1994). Toward a theory of entrepreneurial careers. Entrepreneurship Theory and Practice, 19(2), 7-21. https://doi.org/10.1177/104225879501900202
  23. Endler, N. S.(1983). Interactionism: A personality model but not yet a theory. In Page, M. M., & Dienstbier, R. (Eds.), Symposium on motivation, 155-200, Lincoln: University of Nebraska Press.
  24. Everett, J. E., & Watson, J.(1998). Small Business Failure and External Risk Factors. Small Business Economics, 11(4), 371-390. https://doi.org/10.1023/A:1008065527282
  25. Fisher, I.(1930). The Theory of Interest. New York: MacMillan.
  26. Ford, J.(1985). The effects of causal attributions on decision makers' responses to performance downturns. Academy of management Review, 10(4), 770-786. https://doi.org/10.5465/AMR.1985.4279100
  27. Greenberger, D. B., & Sexton, D. L.(1988). An interactive model of new venture creation. Journal of Small Business Management, 26(3), 1-7.
  28. Gupta, A.(2005). Is Failure So Bad? Failures that interrupt the success trajectory, when viewed as lessons to learn, make growth possible. Mid American Journal of Business, 20(1), 3.
  29. Ha, K. S.(2012). Factors Affecting Entrepreneurial Intention from Business Attitude and Fear on Business Failure. Korean Corporation Management Review, 19(5), 59-74.
  30. Ha, K. S., & Yeo, K. E.(2016). A Study on the Improving Training Program for Entrepreneurship Educators. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 11(3), 221-231. https://doi.org/10.16972/APJBVE.11.3.201606.221
  31. Hayward, M. L. A., Shepherd, D. A., & Griffin, S.(2006). A hubris theory of entrepreneurship. Management Science, 52(2), 160-172. https://doi.org/10.1287/mnsc.1050.0483
  32. Henderson, R., & Robertson, M.(2000). Who wants to be an entrepreneur? Young adult attitudes to entrepreneurship as a career. Career Development International, 5(6), 279-287. https://doi.org/10.1108/13620430010373755
  33. Herron, L. A., & Sapienza, H. J.(1992). The entrepreneur and the initiation of new venture launch activities. Entrepreneurship Theory and Practice, 17(1), 49-55. https://doi.org/10.1177/104225879201700106
  34. Izedonmi, P. F., & Okafor, C.(2010). The effect of Entrepreneurship Education on Students Entrepreneurial Intention. Global Journal of Management and Business Research, 10(6), 49-60.
  35. Jeong, H. B.(2016). Reflection on the Definitions and Research Tasks for the Startup Studies. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 11(3), 77-85. https://doi.org/10.16972/apjbve.11.3.201606.77
  36. Kang, H. H., Park, W. J., & Yun, B. B.(2019). Impact of Entrepreneurial Business Start-up Motivation, Entrepreneurial Spirit, and Entrepreneurial Competence Characteristics on Start-up Companies' Sustainability: Focusing on the Mediating Effect of the Start-up Companies' Business Performance. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 14(3), 59-71.
  37. Khanna, R., Guler, I., & Nerkar, A.(2016). Fail often, fail big and fail fast? Learning from small failures and R&D performance in the Pharmaceutical industry. Academy of Management Journal, 59(2), 436-459. https://doi.org/10.5465/amj.2013.1109
  38. Kim, H. H., & Yoon, H. D.(2015). International Comparison of Re-start up Support system for Failed Businessmen. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 10(6), 235-252. https://doi.org/10.16972/APJBVE.10.6.201512.235
  39. Kim, S. J., Han, J. H., & Lee, S. M.(2016). The Effects of Fear of Failure Factors Affecting Entrepreneurial Intentions of Startup Business Candidate. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 11(3), 49-61. https://doi.org/10.16972/apjbve.11.3.201606.49
  40. Kim, S. Y., Kwak, S. Y., & Jung, G. O.(2019). The Impact of Resilience on Entrepreneurial Intention of Failed Entrepreneur: Focus on the Moderating Role of Entrepreneurial Experience, Role Model and Entrepreneurial Education. Regional Industry Review, 42(1), 57-82.
  41. Kirzner, I. M.(1997). Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach. Journal of Economic Literature, 35(1), 60-85.
  42. Krueger, N. F., & Brazeal, D. V.(1994). Entrepreneurial Potential and Potential Entrepreneurs. Entrepreneurship Theory and Practice, 18(3), 91-104. https://doi.org/10.1177/104225879401800307
  43. Kwon, K. H., & Choi, J. I.(2015). The Analysis of Failure Causes on Technology Venture: A Start-up case of the Government Research Institute. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 10(4), 27-37.
  44. Lee, J. S., & Lee. S. M.(2015). The Relationship between Entrepreneurial Education and Entrepreneurial Intentions: Focusing on Moderating Effects of Entrepreneurial Orientation and Environmental Factors. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 10(3), 61-74. https://doi.org/10.16972/APJBVE.10.3.201506.61
  45. Lee, S. H., Peng, M. W., & Barney, J. B.(2007). Bankruptcy law and entrepreneurship development: A real options perspective. Academy of Management Review, 32(1), 257-272. https://doi.org/10.5465/AMR.2007.23464070
  46. Leoncini, R.(2016). Learning by failing. An empirical exercise on CIS data. Research Policy, 45(2), 376-386. https://doi.org/10.1016/j.respol.2015.10.006
  47. Lorenzet, S. J., Salas, E., & Tannenbaum, S. I.(2005). Benefiting from mistakes: The impact of guided errors on learning, performance, and self-efficacy. Human Resource Development Quarterly, 16(3), 301-322. https://doi.org/10.1002/hrdq.1141
  48. Madsen, P. M., & Desai, V.(2010). Failing to learn? The effects of failure and success on organizational learning in the global orbital launch vehicle industry. Academy of Management Journal, 53(3), 451-476. https://doi.org/10.5465/AMJ.2010.51467631
  49. McGrath, R. G.(1999). Falling forward: Real options reasoning and entrepreneurial failure. Academy of Management Review, 24(1), 13-30. https://doi.org/10.2307/259034
  50. McKenzie, B., & Sud, M.(2008). A hermeneutical approach to understanding entrepreneurial Failure. Academy of Entrepreneurship Journal, 14(1/2), 123-148.
  51. Minniti, M., & Bygrave, W.(2001). A dynamic model of entrepreneurial learning. Entrepreneurship Theory and Practice, 25(3), 5-16. https://doi.org/10.1177/104225870102500301
  52. Naffziger, D. W., Hornsby, J. S., & Kuratko, D. F.(1994). A proposed research model of entrepreneurial motivation. Entrepreneurship Theory and Practice, 18(3), 29-42. https://doi.org/10.1177/104225879401800303
  53. Neter, J., Wasserman, W., & Kunter, M. H.(1990). Applied Linear Statistical Models: Regression, Analysis of Variance, and Experimental Design (3rd ed.). Irwin: Homewood, IL.
  54. Peterman, N., & Kennedy, J.(2003). Enterprise education: Influencing students' perceptions of entrepreneurship. Entrepreneurship Theory and Practice, 28(2), 129-144. https://doi.org/10.1046/j.1540-6520.2003.00035.x
  55. Plehn-Dujowich, J.(2010). A theory of serial entrepreneurship. Small Business Economics, 35(4), 377-398. https://doi.org/10.1007/s11187-008-9171-5
  56. Politis, D., & Gabrielsson, J.(2009). Entrepreneurs' attitudes towards failure: an experiential learning approach. International Journal of Entrepreneurial Behaviour & Research, 15(4), 364-383. https://doi.org/10.1108/13552550910967921
  57. Rasmussen, E., & Borch, O. J.(2010). University Capabilities in Facilitating Entrepreneurship: A Longitudinal Study of Spin-Off Ventures at Mid-Range Universities. Research Policy, 39(5), 602-612. https://doi.org/10.1016/j.respol.2010.02.002
  58. Rasmussen, E. A., & Sorheim, R.(2006). Action-Based Entrepreneurship Education. Technovation, 26(2), 185-194. https://doi.org/10.1016/j.technovation.2005.06.012
  59. Sarasvathy, S., & Menon, A.(2013). Failing firms and successful contrepreneurs: Serial entrepreneurship as a temporal portfolio. Small Business Economics, 40(2), 417-434. https://doi.org/10.1007/s11187-011-9412-x
  60. Schumpeter, J. A.(1934). The Theory of Economic Development. Oxford: Oxford University Press.
  61. Shane, S.(2009). Why encouraging more people to become entrepreneurs is bad public policy. Small Business Economics, 33(2), 141-149. https://doi.org/10.1007/s11187-009-9215-5
  62. Shepherd, D. A.(2003). Learning from business failure: Propositions of grief recovery for the self-employed. Academy of Management Review, 28(2), 318-328. https://doi.org/10.2307/30040715
  63. Shepherd, D. A.(2004). Educating entrepreneurship students about emotion and learning from failure. Academy of Management Learning & Education, 3(3), 274-287. https://doi.org/10.5465/amle.2004.14242217
  64. Shepherd, D. A., & Cardon, M. S.(2009). Negative emotional reactions to project failure and the self-compassion to learn from failure experience. Journal of Management Studies, 46(6), 923-949. https://doi.org/10.1111/j.1467-6486.2009.00821.x
  65. Shepherd, D. A., Covin, J. G., & Kuratko, D. F.(2009). Project failure from corporate entrepreneurship: Managing the grief process. Journal of Business Venturing, 24(6), 588-600. https://doi.org/10.1016/j.jbusvent.2008.01.009
  66. Shepherd, D. A., Douglas, E. J., & Shanley, M.(2000). New venture survival: Ignorance, external shocks, and risk reduction strategies. Journal of Business Venturing, 15(5), 393-410. https://doi.org/10.1016/S0883-9026(98)00032-9
  67. Shim, H. S., & Jang, H. J.(2015). A Study on the Type of the New Business Failure Factors Using Failure Knowledge. Journal of the Korean Entrepreneurship Socieity, 10(1), 26-44. https://doi.org/10.24878/TKES.2015.10.1.26
  68. Shinnar, R. S., Giacomin, O., & Janssen, F.(2012). Entrepreneurial perceptions and intentions: The role of gender and culture. Entrepreneurship Theory and Practice, 36(3), 465-493. https://doi.org/10.1111/j.1540-6520.2012.00509.x
  69. Singh, S., Corner, P. D., & Pavlovich, K.(2015). Failed, not finished: A narrative approach to understanding venture failure stigmatization. Journal of Business Venturing, 30(1), 150-166. https://doi.org/10.1016/j.jbusvent.2014.07.005
  70. Song, Y. M., & Kim, K, H.(2019). A Study on the Problem Solving of Start-up Companies by Analyzing the Factors of Its Failure. Journal of the Korean Entrepreneurship Socieity, 14(3), 94-120. https://doi.org/10.24878/TKES.2019.14.3.94
  71. Souitaris, V., Zerbinati, S., & Al-Laham, A.(2007). Do entrepreneurship programmes raise entrepreneurial intention of science and engineering students? The effect of learning, inspiration and resources. Journal of Business Venturing, 22(4), 566-591. https://doi.org/10.1016/j.jbusvent.2006.05.002
  72. Stam, E., Audretsch, D. B., & Meijaard, J.(2008). Renascent entrepreneurship. Journal of Evolutionary Economics, 18, 493-507. https://doi.org/10.1007/s00191-008-0095-7
  73. Stokes, D., & Blackburn, R.(2002). Learning the hard way: the lessons of owner-managers who have closed their businesses. Journal of Business Venturing, 9(1), 17-27.
  74. Turker, D., & Selcuk, S. S.(2009). Which factors affect entrepreneurial intention of university students. Journal of European Industrial Training, 33(2), 142-159. https://doi.org/10.1108/03090590910939049
  75. Ucbasaran, D., Westhead, P., Wright, M., & Flores, M.(2010). The nature of entrepreneurial experience, business failure and comparative optimism. Journal of Business Venturing, 25(6), 541-555. https://doi.org/10.1016/j.jbusvent.2009.04.001
  76. Ucbasaran, D., Shepherd, D., Lockett, A., & Lyon, S. J.(2013). Life after business failure: the process and consequences of business failure for entrepreneurs. Journal of Management, 39(1), 163-202. https://doi.org/10.1177/0149206312457823
  77. Wagner III, J. A., & Gooding, R. Z.(1997). Equivocal information and attribution: An investigation of patterns of managerial sensemaking. Strategic Management Journal, 18(4), 275-286. https://doi.org/10.1002/(SICI)1097-0266(199704)18:4<275::AID-SMJ880>3.0.CO;2-V
  78. Yamakawa, Y., Peng, M. W., & Deeds, D. L.(2010). Revitalizing and learning from failure for future entrepreneurial growth. Frontiers of Entrepreneurship Research, 30(6), 1-11.
  79. Yamakawa, Y., Peng. M. W., & Deeds. D. L.(2013). Rising from the ashes: Cognitive determinants of venture growth after entrepreneurial failure. Entrepreneurship Theory and Practice, 39(2), 209-236. https://doi.org/10.1111/etap.12047
  80. Yoo, B. H.(2015). The Effect of Achievement Needs and Entrepreneurship on the Start-up Intention: Focus on Mediation Role of Start-up Motivation. Asia-Pacific Journal of Business Venturing and Entrepreneurship, 10(3), 51-60. https://doi.org/10.16972/APJBVE.10.3.201506.51
  81. Zietsma, C.(1999). Opportunity knocks-or does it hide? an examination of the role of opportunity recognition in entrepreneurship. Reynolds, P. D., Bygrave, W. D., Manigart, S., Mason, C. M., Meyer, G. D., Sapienza, H. J., & Shaver, K. G.(Eds.), 242-256, Frontiers of Entrepreneurship Research, Blank Center for Entrepreneurship, Babson College.