Entrepreneurial learning process after a business failure

Abstract

Background: Entrepreneurial research often overlooks failure as a catalyst for learning. Understanding how entrepreneurs recover from failure and apply their experiences to new ventures proves crucial for developing resilience. Research objectives: This study examines how micro-entrepreneurs who faced total business failure acquire new knowledge and adapt through entrepreneurial learning. Research design and methods: We conducted a qualitative exploratory study with five entrepreneurs who restarted businesses after bankruptcy. We collected data via semi-structured interviews and analyzed them using narrative-based content analysis. Results: Despite significant financial and emotional costs, entrepreneurs actively engaged in meaning-making and knowledge acquisition. Emotional processing and resilience-building enhanced their ability to adapt and overcome challenges. Conclusions: Entrepreneurial learning plays a key role in business recovery. The findings emphasize the importance of meaning creation, knowledge development, and emotional adaptation in navigating failure and fostering long-term entrepreneurial success.