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Book Details
Abstract
There is a clear economic and social rationale in providing a second chance to failed entrepreneurs and deriving positive experiences from negative situations. Value of Failure is a comprehensive attempt at understanding the various aspects of the phenomenon of business failure. The book covers various aspects of second-chance entrepreneurs (and economic failure in general) and opportunities for changing general perception toward the phenomenon. It enables readers to understand business failure from the perspective of institutional theory; economic failure in the process of small business growth in the context of the shadow economy; Schumpeter’s theory of ‘creative destruction’ and the fear of failure; sustainable economic growth and development; and system approach to failures and their impact on the enterprise operation.
Joanna Markiewicz, PhD, is assistant professor in the Chair of Effectiveness of Innovation at the University of Szczecin, Poland.
Leszek Gracz, PhD, is assistant professor in the Chair of Services Marketing at the University of Szczecin, Poland.
Growing levels of education, increasing availability of capital, diversification and specialization of economic activities, and the numerous support options available to start a business has led to the creation of more and more micro and small businesses across Europe. But while the process of setting up a business is increasingly straightforward, keeping it going is much tougher. In normal times, business entry and business exit are natural processes, inherent to economic life. Yet, the number of bankruptcies peaked during the recent financial crisis. The Lisbon Partnership had identified the key role of overcoming the stigma of business failure as a strategy for growth and jobs.
There is a clear economic and social rationale in providing a second chance to failed entrepreneurs and helping them derive positive experiences from negative situations. First, businesses set up by restarters grow faster than those of first timers in terms of turnover and jobs created. The case studies of Ford, Hershey and Disney are instructive for young entrepreneurs in this matter.
Second, most of the time, the cause of a business failure is not the incompetence but external circumstances such as a slump in demand, financial crisis or rise of a new competitor. However, this professional failure is often confused with personal failure, and low self-esteem causes individuals to withdraw and retreat to safer employment options.
Third, it is accepted that a society does not generate innovation and productivity by steadfastly avoiding mistakes but rather by learning from them. Yet the culture of and incentive system in Europe does not reflect this.
Value of Failure is a comprehensive attempt to understand the various aspects of the phenomenon of business failure. It enables readers to understand business failure from the perspective of institutional theory; economic failure in the process of small business growth in the context of the shadow economy; Schumpeter’s theory of ‘creative destruction’ and the fear of failure; sustainable economic growth and development and system approach to failures and their impact on the enterprise operation.
Table of Contents
Section Title | Page | Action | Price |
---|---|---|---|
Cover | Cover 1 | ||
Front Matter | iii | ||
Half-title | i | ||
Title page | iii | ||
Copyright information | iv | ||
Table of contents | v | ||
List of Illustrations | vii | ||
Preface | ix | ||
Chapter 1-5 | xi | ||
Chapter 1 From Losers To Heroes: How to Change The Perception of Business Failure and Recognize its Value ... | xi | ||
Abstract | xi | ||
Introduction | xii | ||
Business Failure through the Lens of Institutional Theory | xiii | ||
Institutional theory—theoretical bases | xiii | ||
Approach to business failure | xiv | ||
The Impact of Business Failure for the Economy | xvi | ||
Method | xvii | ||
Two phases of research | xvii | ||
Focus Group Interview | xviii | ||
Focus Group Interviews—Findings | xix | ||
In-Depth Interviews | xxi | ||
In-Depth Interviews—Findings | xxii | ||
Conclusion | xxiv | ||
References | xxv | ||
Chapter 2 Economic Failure in the Process of Small Business Growth in the Context of the Shadow Economy | xxix | ||
Abstract | xxix | ||
Introduction | xxix | ||
Goal and Scope of the Chapter | xxx | ||
Barriers for SMEs’ Growth | xxxi | ||
The Influence of the Shadow Economy on the Operation and Growth of Small Businesses | xxxviii | ||
Risk of Failure in the Process of Small Businesses’ Growth in the Shadow Economy | xl | ||
Conclusion | xliii | ||
References | xliv | ||
Chapter 3 Failure as a Barrier to Entrepreneurial new Venturing in Northern Ireland | xlvii | ||
Introduction | xlvii | ||
Defining Business Failure | xlviii | ||
Main Issues Affecting Individuals with Previous Failure Experience | xlix | ||
Cultural aspect: Tackling fear of failure | xlix | ||
Cultural aspect: Challenging negative attitudes toward failed entrepreneurs | l | ||
Tackling finance as a barrier to restart | lii | ||
The need to change perceptions through education | lii | ||
Methodology | liii | ||
Key interview findings | lvi | ||
Cultural attitudes | lvii | ||
Access to finance | lviii | ||
Education | lviii | ||
Conclusion | lx | ||
References | lxi | ||
Chapter 4 Business and Sustainability: Key Drivers for Business Success and Business Failure From the Perspective ... | lxv | ||
Introduction | lxv | ||
The Path of Sustainability | lxvi | ||
Key Drivers for Business Success and Business Failure | lxviii | ||
Institutions and Entrepreneurship versus Growth and Development: Why Do They Matter? | lxxiii | ||
Education and Human Capital for Business as a Key Element of the Social Pillar of Sustainability | lxxv | ||
The Third Pillar of Sustainability: Environmental Issues versus Business | lxxviii | ||
Conclusion | lxxx | ||
References | lxxx | ||
Chapter 5 Implementation of the Enterprise Resource Planning Systems: Case Studies of Failures and Their Impact ... | lxxxv | ||
Abstract | lxxxv | ||
Complexity of ERP System—a Brief History | lxxxv | ||
Implementation of ERP Systems—from the Methodological Background to Value of Failure | lxxxvii | ||
Methodology of ERP system implementations | lxxxix | ||
Reasons for the ERP implementation failures | xciii | ||
Value of the ERP implementations’ failure | xcvii | ||
Conclusion | civ | ||
References | civ |