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Learning from entrepreneurial failure
Learning from entrepreneurial failure
Learning from entrepreneurial failure
Learning from entrepreneurial failure
Learning from entrepreneurial failure
Learning from entrepreneurial failure
Learning from entrepreneurial failure
Learning from entrepreneurial failure
Learning from entrepreneurial failure
Learning from entrepreneurial failure
Learning from entrepreneurial failure
Learning from entrepreneurial failure
Learning from entrepreneurial failure
Learning from entrepreneurial failure
Learning from entrepreneurial failure
Learning from entrepreneurial failure
Learning from entrepreneurial failure
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Learning from entrepreneurial failure

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A short overview of how to learn from Entrepreneurial Failure

A short overview of how to learn from Entrepreneurial Failure

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  • 1. Where it went wrong?
    Learning from Entrepreneurial Failure
    Ing. M.H.M. Hammer M.Sc.
  • 2.
    • Theory:
    • 3. What is Entrepreneurial Failure?
    • 4. Can you find some examples?
    • 5. Practice:
    • 6. What could help to prevent an Entrepreneur from failure?
    Index
  • 7. Entrepreneurial Failure
    Definition:
    According to the entrepreneur, undesirable stopping the company
  • 8. Introduction to the topic
    Why some entrepreneurs succeed and others fail?
    At the time of launch all entrepreneurs are convinced of their businesses to achieve success (Shane & Venkataraman, 2000; Driessen, 2005, Shane, 2003).
    In the Netherlands ± 50% of the ventures is not surviving the first 5 years (Meijaard et al, 2007; Bangma & Snel, 2009).
    TOP program: dropout rate is 25%, while unaccompanied spin-off companies have a dropout of 40% (University of Twente, 2005).
  • 9. Key concepts
    Why quit a venture (dropout)?:
    Entrepreneurial exit; quit because of good performance (e.g. Detienne, 2008; Wennberg et al, 2009)
    Entrepreneurial failure; quit because the performances are not good (e.g. Samuels et al, 2008; Wennberg et al, 2009)
    Ratio (after 1st 7 years) EE/EF: 50/50 (Wennberg et al, 2009).
  • 10. Key concepts
    Entrepreneurial Failure is divided in (Cardon et al, 2009):
    tough luck
    mistakes by the operator
    Reasons for Entrepreneurial Failure:
    the entrepreneur (e.g., Simon et al, 2000, Ottesen &, 2005, Hayward el al, 2006)
    The entrepreneurial environment (Vaillant, 2007)
  • 11. Theory
    Fostering entrepreneurship:
    the person of the entrepreneur (e.g. Stewart & Roth, 2007, Judge & Ilies, 2002 and Kirton, 1976)
    the process of entrepreneurship (e.g. Shane & Venkataraman, 2000, Gartner, 1985 and Shapero, 1982).
    A starting entrepreneur, sequential runs a number of steps (van der Veen & Wakkee, 2004, van der Sijde, 2004, Shane & Venkataraman, 2000, Low & MacMillen, 1988, Gartner, 1985; Shapero & Sokol, 1982).
  • 12. Theory
    Generalized model is that of Veccio(Veccio, 2003):
    the preparatory phase (pre-start)
    start,
    the venture being in action (exploration)
    stopping doing business (exit)
  • 13. Reasons for Failure
    Lack of experience
    Insufficient capital (money)
    Poor location
    Poor inventory management
    Over-investment in fixed assets
    Poor credit arrangements
    Personal use of business funds
    Unexpected growth
    Competition
    Low sales
    (Source: Michael Ames, Custav Berle)
  • 14. Your turn!
    Please write down some examples you know of an entrepreneur who failed with the enterprise.
    Stopped, unwanted.
    Bankruptcy
    Closed down with grieve.
  • 15. What are causes?
    What could be causes for the failure?
    Please write down as much as you can come-up with.
    (Use yellow post-it’s)
  • 16. Goal / Question
    How to reduce Entrepreneurial Failure (EF) in the post start-up phase of entrepreneurship?
  • 17. Finaly:
    What should have helped the entrepreneur to prevent from failure?
  • 18. Research model
  • 19. Summarize
  • 20. Thank you for your help andattention!
  • 21. For more information, suggestions or cooperation, do not hesitate to contact:
    m.h.m.hammermsc@saxion.nl

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