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The Anatomy of Business Failure. A Qualitative Account of its Implications for Future Business Success

Author

Listed:
  • Artur Raimundo Dias

    (Faculdade de Economia do Porto)

  • Aurora A.C. Teixeira

    (CEF.UP, Faculdade de Economia, Universidade do Porto; INESC TEC; OBEGEF)

Abstract

The aim of the present study is to contribute to the empirical literature on the consequences of Business Failure (BF), resorting to qualitative methods in order to better understand the aftermath of BF. Semi-structured interviews were used in order to collect data, which were later transcribed and analyzed using Interpretative Phenomenological Analysis. Evidence gathered based on the experience of six entrepreneurs (three from the north of Europe and three from the south) showed that previous failure impacted individuals strongly. Such an impact appears to be shaped by the individual’s experience and age, and their perception of blame for the failure. However, for these particular individuals, it does not seem to be affected by the size of the project or the amount of financial loss. An array of moderator costs was identified, ranging from antecedents to institutions that were present in the individual’s lives. The outcomes are directly relatable to the failed experience by the individual. It was also found that the failure had a significant effect on the individual’s career path.

Suggested Citation

  • Artur Raimundo Dias & Aurora A.C. Teixeira, 2014. "The Anatomy of Business Failure. A Qualitative Account of its Implications for Future Business Success," FEP Working Papers 550, Universidade do Porto, Faculdade de Economia do Porto.
    • Handle: RePEc:por:fepwps:550
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    File URL: http://www.fep.up.pt/investigacao/workingpapers/wp550.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    business failure; consequences; interpretative phenomenological analysis; learning from failure;
    All these keywords.

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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