Exploring the mindset of social entrepreneurs towards failure: Evidence from focus group interviews

Abstract

Background: Failure is a common aspect of entrepreneurship due to high uncertainty. This study examines the specific context of social entrepreneurship, which combines profit goals with social missions. Research objectives: The primary objective is to understand social entrepreneurs’ mindsets towards failure. Research design and methods: The study employs focus group interviews (FGI) with social entrepreneurs, representatives from Social Economy Support Centres, and government delegates in three major Polish cities. Results: Findings reveal diverse perceptions of failure among social entrepreneurs. They view failure both as a setback and an opportunity for growth. The study identifies financial instability and mission drift as common failure factors, and highlights the profound emotional and social impacts of failure. Conclusions: Social entrepreneurs’ perception of failure is complex, influenced by their dual focus on financial sustainability and social impact. These insights can help develop better support mechanisms for social enterprises, promoting resilience and learning from failure.