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

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)
Publication Information
Asia-Pacific Journal of Business Venturing and Entrepreneurship / v.15, no.2, 2020 , pp. 33-45 More about this Journal
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.
Keywords
Re-starting business; Failure experience; Entrepreneurial re-education; Entrepreneurial motivation;
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Times Cited By KSCI : 2  (Citation Analysis)
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