System of lessons learned from entrepreneurial failure
DOI:
https://doi.org/10.15170/MM.2023.57.KSZ.03.06Keywords:
entrepreneurial failure, learning, lessonsAbstract
THE AIM OF THE PAPER
In Hungary only half of new enterprises survive their first three years. Thereby most of the entrepreneurs will experience failure and it is important to research that what can entrepreneurs learn from these sometimes unpleasant experiences for their future businesses. Therefore, present research sought the answer to what entrepreneurs learn from their failures and how these lessons can be systematized.
METHODOLOGY
In this qualitative research 16 entrepreneurs, who experienced at least one failure, were interviewed with a tested, semi-structured in-depth-interview thread. The potential interviewees were reached with recommendation based sampling, because of the sensitive topic and to enhance trust building toward the researcher. During the analysis all of the explored lessons were used in the systemization.
MOST IMPORTANT RESULTS
The explored categorization structure contains 11 groups of lessons grouped into four bigger themes (personal, relationships, management and marketing lessons). The 11 groups are the followings: self-knowledge/personal development; crisis and failure management; career considerations; lessons related to leaders; and -employees; communication/cooperation; business management; legal and financial lessons; market environment and competition; customers and consumer behavior; and finally marketing communication. The resulting structure offers a more detailed and complete systematization of the lessons learned from entrepreneurial failure than previous theories. The interviewed entrepreneurs learned most about self-knowledge/personal development and business management during the failure.
RECOMMENDATIONS
The results of this research can be used in business life in two ways. On the one hand, the results, as real-life examples or case studies, can be incorporated into entrepreneur and economist education. On the other hand, managers and entrepreneurs can get a reminder by reading the study that it is worth paying attention to sometimes obvious things, because these mistakes can cause to lose their businesses.
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