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Value of Failure

Value of Failure

Leszek Gracz | Joanna Markiewicz

(2017)

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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