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

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.