Entrepreneurs' response to failure in early stage technology ventures: A comparative study

Entrepreneurs develop new technology ventures in uncertain conditions with unproven technologies and limited resources. The majority of such ventures fail. Examining entrepreneurs' attitudes to failure may reveal much about how entrepreneurs learn and how they identify subsequent opportunities. This paper examines how entrepreneurs' attitudes to failure in early stage technology companies differ in the USA UK and Germany, and what this might reveal about entrepreneurial learning and opportunity identification in these countries. Using a qualitative approach, interviews with habitual entrepreneurs explore their experiences of failure. Based on this analysis and a review of the literature, a conceptual model of how to analyze failure is proposed. It is hoped this research will improve the preparedness of new entrepreneurs, with positive implications for future entrepreneurial success. The conceptual framework is presented as an approach to concentrate further research into entrepreneurial failure and contribute to a subsequent model of the wider entrepreneurial process. The industry focus on technology ventures, along with the comparative nature of the study, add to existing literature on entrepreneurial failure.