Psychosocial Factors Determining Enterprise Intention Of Unsuccessful Entrepreneurs

INTRODUCTION The first chapter is presented in five sections, each attempting to highlight the key aspects of coping with entrepreneurial failure and psycho-social factors that play a significant role in entrepreneurial behavior subsequent to failure considering the available theoretical and conceptual frameworks. Section I presents the introduction highlighting the definition of entrepreneurs, entrepreneurial failure and general description Section II details the reactions to business failure, the costs of failure, coping strategies, entrepreneurial learning and outcome behavior subsequent to failure Section III highlights theoretical backdrop of entrepreneurship, failure and subsequent course of action from different perspectives. Section IV covers key supporting psycho-social factors that facilitate re-venturing or an alternative course of action Section V outlines the conceptual frame work and the need for this study highlighting the key objectives. Section I: Introduction "A little more persistence, a little more effort, and what seemed hopeless failure may turn to glorious success". These words of Elbert Hubbard, American Philosopher and incidentally an Entrepreneur himself, highlights how a little extra push could convert hopeless failure into glorious success. It becomes all the more relevant in the field of Entrepreneurship. 1 In the era of Liberalization, Privatization, and Globalization, the materialistic prosperity and economic well-being is highly influenced by the level of Entrepreneurship in the country. Entrepreneurship has become the engine of economic and social development throughout the world in the 21st century (Audretsch, 2003, 2005). The value of entrepreneurship to economic development, job creation, and innovation is well documented (Carree & Thurik, 2010). The role of entrepreneurship in society has changed drastically over the last half a century. Engendering entrepreneurship is one of the key priorities for formulating public policy in most of the economies of the world, more so in developing economies as prosperity of people revolves around the successful outcomes of entrepreneurship. In comparison to other disciplines, the field of entrepreneurship is still young and in a formative stage. The impact of entrepreneurship on society is investigated widely and is the focus of a growing body of research ranging from the disciplines of economics, psychology, sociology to management. In developing economies, as the significance of entrepreneurship has been felt as vital due to its contribution to make the economy so vibrant and dynamic, the thrust for the importance of entrepreneurial success increases, so does the importance of entrepreneurial failure. As more enterprises enter the market, the potential for failure is as significant as the potential for success. Even though any failure and in particular, the entrepreneurial failure is appraised in a negative fashion, the learning opportunity it provides for policy makers, entrepreneurs, venture capitalists, and other stakeholders to look at different perspectives is vitally important. Since entrepreneurs are required to perform a series of critical functions that have been created as a consequence of inefficient and underdeveloped markets, uncertain,