Moving forward: Balancing the financial and emotional costs of business failure

Dean A. Shepherd, Johan Wiklund, J. Michael Haynie

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Why do owner-managers delay business failure when il is financially cosily to do so? In this paper we acknowledge that delaying business failure can be financially costly to the owner-manager and the more costly the delay-the more difficult the recovery, lint we complement this financial perspective by introducing the notion of anticipatory grief as a mechanism for reducing the level of grief triggered by the failure event, which reduces the emotional costs of business failure. We propose that under some circumstances delaying business failure can help balance the financial and emotional costs of business failure to enhance an owner-manager's overall recovery-some persistence may 'pc beneficial to recovery and promote subsequent entrepreneurial action. Published by Elsevier Inc.

Original languageEnglish (US)
Title of host publicationA Psychological Approach to Entrepreneurship: Selected Essays of Dean A. Shepherd
PublisherEdward Elgar Publishing Ltd.
Pages487-501
Number of pages15
ISBN (Electronic)9781783479801
ISBN (Print)9781783479795
DOIs
StatePublished - Dec 26 2014

Keywords

  • Commitment
  • Entrepreneur
  • Failure
  • Learning
  • Negative emotions
  • Passion
  • Recovery

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business, Management and Accounting(all)
  • Psychology(all)

Fingerprint Dive into the research topics of 'Moving forward: Balancing the financial and emotional costs of business failure'. Together they form a unique fingerprint.

  • Cite this

    Shepherd, D. A., Wiklund, J., & Michael Haynie, J. (2014). Moving forward: Balancing the financial and emotional costs of business failure. In A Psychological Approach to Entrepreneurship: Selected Essays of Dean A. Shepherd (pp. 487-501). Edward Elgar Publishing Ltd.. https://doi.org/10.4337/9781783479801.00034