Research Proposal on Entrepreneurial Resilience Post-Business Failure

This research proposal delves into the realm of entrepreneurial resilience, specifically focusing on the factors that motivate entrepreneurs to initiate new ventures following the failure of a previous business. The study begins by establishing a clear research question, exploring the internal and external factors contributing to business failure. It then conducts a thorough literature review, examining the internal factors such as lack of team resilience, communication, and external influences like political and economic conditions. The proposal also evaluates appropriate research methodologies, ultimately choosing a suitable approach to address the research question. Finally, the report presents the findings, summarizing the key insights and analyzing the implications of entrepreneurial resilience in the context of business failure and subsequent venture creation. The research highlights the importance of understanding the psychological, emotional, and strategic elements that influence an entrepreneur's decision to embark on a new business venture after experiencing failure.

Unit 16: Research
Methods For
Strategic Managers

Entrepreneurial Resilience:
What Makes Entrepreneurs
Start Another Business
After Failure

Table Of Content
Introduction....................................................................................................................5
LO1 Understanding Regarding The Selection Of The Research Question....................5
1.1 Select a research question.................................................................................5
1.2 Explanation Of The Factors That Contribute To The Process Of Successful
Research Question Selection..................................................................................6
1.3 Justification For The Choice Of Research Question........................................6
LO2 Literature Review For Managing Quality In An organization...............................6
2.1 Conduct research to find literature relevant to the research question..............7
2.2 Undertake a critical review of the key literature for inclusion in a research
proposal................................................................................................................10
LO3 Techniques Used To Interpret Data in a Research Proposal................................13
3.1 Evaluate Techniques For Use With Quantitative Data in a Research Proposal
..............................................................................................................................13
3.2 Evaluate Techniques For Use With Qualitative Data in a Research..............14
LO4 Choosing Appropriate Methodology To Research The Question........................14
4.1 Evaluate appropriate research methodologies in terms of the research
question................................................................................................................14

4.2 Choose an appropriate methodology in terms of the research question.........15
4.3 Justify The Methodology Selected In Terms Of The Research Question......16
LO5 Present The Findings Of The Research Proposal.................................................16
5.1 Record Findings On The Research Question, Literature Review And
Methodology In An Agreed Format.....................................................................17
5.2 Summarise The Findings Using Suitable Methods........................................17
5.3 Present The Findings Using Suitable Methods..............................................18
5.4 Critically Analyse The Findings.....................................................................18
Conclusion....................................................................................................................18
Reference List...............................................................................................................20

Introduction
Heavy market competition, continuous development of the technologies used
regarding the businesses, various demands raised from the end of stakeholders, lack of
time span, extended uncertainty, etc. are some of the major challenges for the
successful operation of the business organizations in the prevailing business world.
This generates for the enhanced stress for the entrepreneurs to experience the stress
regarding the sustenance of the business rather than employees associated with the
organizations. Resilience is the concept that will protect the entrepreneurs of the
businesses from the threats raised from the business challenges and thereby bring
about the changes within the business environment.
The present study will analyse some of such reasons that stands behind the failure of
an operational venture and will thereby emphasize on the positive concerns that
triggers desire within an entrepreneur for beginning another venture. The various
aspects that will be considered in the present research project will include
enhancement of confidence level, exposure, and experience upon the operation of a
venture, experience gained upon the failure of a venture, development of the
adaptational attitude towards oneself and also towards the business, and the ability
developed for the analysis of collective -self and relational-self upon the failure of a
venture (Awotoye& Singh, 2017).
LO1 Understanding Regarding The Selection Of The Research Question
1.1 Select a research question
The research question that has been selected for completion of the present research
proposal can be described as:

 What are the factors and reasons that triggers an entreprenuer to start a fresh
business upon the failure of an existing business?
1.2 Explanation Of The Factors That Contribute To The Process Of Successful
Research Question Selection
Entrepreneurship can be referred to the process of establishing something very unique
that is at least not done by anybody. Thus there are huge chances associated with the
fact that the business venture of the entrepreneur can fail during its operational span.
However, there are certain factors that constitute for a resiliency behaviour and
initiative amongst the entrepreneurs upon failure of a business. These factors include
Moral compass, Active optimism, Interpersonal support, relentless tenacity, and
Decisive action (Fatoki, 2018). When all these factors act within an individual then
that can provide for enhanced aid to the entrepreneurs regarding the overall phase of
venture failure and make the move ahead towards working out a new business upon
failure of a business.
Problem statement Applied research has a great potential when we talk about
theory based work. Industrial organisation and marketing makes it easier to
understand the strategic based questions. At the end of the research we can draw
theories from the existing knowledge base and will answer all the research based
questions. The entire process of analysing the data will give us the experience on how
to conduct a research.
1.3 Justification For The Choice Of Research Question
Although during the operational phase the businesses face numerous competitions and
tough times, but the strategies adopted for the operation of the business are not always
optimal for the economic development of the businesses. This leads for the failure and

closure of businesses at times. But upon the failure of the businesses it is the
psychological and emotional functions of the entrepreneur that will enable him or her
to stand up and learn from the past experience and exposure. This will thereby initiate
the entrepreneur to take a fresh step regarding establishment of a new business
venture within the business environment.
LO2 Literature Review For Managing Quality In An organization
2.1 Conduct research to find literature relevant to the research question
Prior to the further analysis regarding the factors that make the entrepreneurs start a
fresh business upon the failure of existing business it is very much essential to
understand those factors that may lead to the failure of the businesses. The
entrepreneur is the backbone of any business organization. Thus for analysis of the
reasons that lead to venture failure it is essential to analyse the background of the
entrepreneur and thereby identify the qualities possessed by the entrepreneur
(Lafuente, Vaillant, Vendrell‐Herrero, & Gomes, 2018). The various factors
associated with the venture failure are:
Internal Factors:
 Lack of team resilience
 Absence of effective communication amongst entrepreneur and team members
 Deficiency of interpersonal support
 Lack of deficit attention towards the product and services offered
 Lack of business contacts

 Unable to generate adequate understanding of the target audience for business
operations.
 Inefficient listening
 Lack of self understand of the entrepreneur
 Diminished enthusiasm
 Ego issues of the members with the entrepreneur
 Lagging emphasis regarding the relevance and significance of R&D
 Lack of transparency in behaviour.
 Failure in defining and achievement of monthly, quarterly, annual goals
 Biased behaviour within the venture operations (Lee & Wang, 2017)
 Unwillingness to hear negative feedback regarding performance of business
venture.
External Factors:
Influences of Politics, Culture, and Environment: Despite of some much effective
and efficient business ideas, it is sometimes the environmental, cultural, and political
issues prevailing within the business environment that may bring about the hindrances
regarding the venture operations.
Inadequate Investment: A sound initial investment is one of the core requirements for
any business venture. When the business ventures enter into the market without the
effective and sufficient economical support, then it is very likely that the business will

not be able to face the ups and downs within the market conditions and will have a
tendency to collapse (Verreynne, Ho, & Linnenluecke,2018).
Lagging and Outdated Technology: Many a times the idea adopted for the business
are much likely but the usage of the old and outdated technologies concerning for the
venture operations results into venture failure. So it is very crucial and significant to
make the effective use of the requisite technology for the attainment of the requisite
impact on the performance of the business ventures.
Inappropriate allocation Of Funds: For enhanced business performance it is very
much essential to have the understanding of the manner in which the money must be
allocated within the business for attainment of effective output. Lack of the requisite
ideas will deliberately lead to the mismanagement of funds for the business and
thereby lead to economic crisis for the business. This will lead the business venture to
loose its sustainability within the market.
Economic Condition Within The Business Environment: For the business ventures
to sustain the competition and remain operational within the market structure it is very
much essential that the economic condition prevailing in the business area is stable
enough to provide for stable support for the business (Manfield&Newey, 2018).
Deficiency Of Venture Capitalists: Sometimes the business entrepreneurs are not in a
position to meet the initial investments for the business and thereby seek the support
from the venture capitalists. The conditions when there will be lack of venture
capitalists, there will be trouble for the entrepreneurs regarding the execution of their
business ideas due to the lack of the requisite capital.

Apart from sometimes the ideas led for the business ventures are also not accepted by
the venture capitalists leading them to deny for the providing funds for the businesses
(Corner, Singh, &Pavlovich, 2017).
Thus there are the reasons that may lead the business ventures to fail regarding
performing their business operations in the appropriate manner. But that does not
serves to be the end of the overall business span. There are also the scopes for the
entrepreneurs to start their business ventures in an absolutely fresh manner and attain
success regarding their business performance in the near future (Duchek, 2018).
2.2 Undertake a critical review of the key literature for inclusion in a research
proposal
Reasons That May Indulge The Entrepreneurs To Start For New Business Upon
Failure
Failure can be treated as the result that is obtained due to inappropriate states or
actions. When any business thereby is unable to attain the profits regarding their
functioning then that is considered to be a failure business model. But from the end of
the business entrepreneurs it is always a lesson to take the learning from and an
opportunity associated with some adequate costs. Also the business venture that is
operating in a successful manner may not be regarded as a successful one in view of
the entrepreneur. Together these are the feelings that may create a push for the
entrepreneur to make a new initiative regarding the starting of an entirely fresh
business venture with some innovative idea (Hallak, Assaker, O’Connor, & Lee,
2018).
This trigger for the initiation of the new business venture upon a failure can also be a
pull from any positive event or incident. There may be an incredible and outstanding

opportunity available with the entrepreneur that may motivate the prospective
entrepreneur to start a new business venture and take the scope from the opportunities
for the attainment of success.
However, it has been suggested by Williams and Shepherd, 2016that amongst the
entrepreneurs of the present business world it is significantly the push factor rather
than the pull factor that attracts the entrepreneurs to start their businesses in a fresh
manner upon their failure in a specific business context.
Entrepreneur resilience is thus the ability possessed by the entrepreneurs to overcome
and withstand the adversities associated with the business and thus is a very vital
concern for the entrepreneurial success. This will determine the manner in which the
business venture upon their initial failure with standby take the learning and will
initiate the new business and strive it towards the success from the learnings taken
from the initial business.
There can be numerous factors that may trigger the interests of the business
entrepreneurs to start their businesses upon encountering failure in their business
contexts. These factors can be counted as:
 Application and implementation of the business ideas in an inappropriate manner
may cause the failure of a business venture. Thus the entrepreneur may have the
thrust to start another business upon failure by implementing the ideas in an
enhanced manner.
 Effective learning of entrepreneur tactics upon a venture failure is a very
significant factor and may initiate the thrust amongst the entrepreneur to start the
new business (Liu, 2018).

 Psychology of the entrepreneur is a vital factor. Added to that the effective
calculation of the risk factor will enable the entrepreneur to stay optimistic
regarding the initiation of the a new business upon a business failure.
 Establishment of the idea in the general people’s psychology will enable the
business to have a huge consumer base. When any idea convinces a large scale of
people then that will define success for the business and give a thrust for the
effective set up of the new business.
 For enhancement of business profits some entrepreneurs starts for the new
business. The emphasis of the entrepreneur regarding the initiation of the new
business must therefore lie within the development of the uniqueness in business
idea and utilizing it for generation of optimized profits.
 As a quick fix to meet the loss for the previous business losses some
entrepreneurs are having the idea of starting the new ventures. The failure of a
business causes psychological effects on the entrepreneur and thereby increases
their intention to recover the losses made due to failure of a business by setting
another new business venture.
 A push from the business environment as well as the unfavourable business and
economic conditions may also result the entrepreneurs to start a fresh business.
 Making effective utilization of future growth prospects of the customer base may
also make the entrepreneurs skilled and confident for the initiation of the new
business plans.
 Application of advice taken from mentors may also be a vital cause for some
business entrepreneurs to start a new business upon a business failure. The