How Social Entrepreneurs Respond to Enterprise Failure

Abstract

Given that little research examines how social entrepreneurs respond to venture failure, the first aim of this conceptual paper is to explore the cognitive, affective and behavioural responses of social entrepreneurs to the demise of their organisations. The second aim is to explore four factors that contribute to these responses: values, motives, personality, and identity. The third aim is to compare responses to failure in social entrepreneurship to failure in commercial entrepreneurship. Literature was sought that focuses on responses to commercial and social entrepreneurship failure, supported by studies in management, organisational behaviour and social psychology. Despite the paucity of empirical research into how failure social entrepreneurs experience failure, we argue that the dual goals of social entrepreneurs (financial and social) place a more significant burden on them than commercial entrepreneurs when their enterprises fail. While negative responses are common, more constructive reactions are possible. The nature of the responses and their underlying factors are captured in a new model of responses to failure in social entrepreneurship, propositions are presented and several directions for future research are indicated.

Keywords:

• Failure
• social and commercial entrepreneurship
• cognitive
• affective and behavioural responses
• values
• motives
• personality
• identity
• institutional logics

Correction Statement

This article has been corrected with minor changes. These changes do not impact the academic content of the article.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Roy Smollan

Dr Roy K. Smollan is a Senior Lecturer in Management at the Auckland University of Technology, Auckland, New Zealand. His research interests lie in the fields of organisational change, social entrepreneurship, occupational stress, emotions at work, emotional intelligence, leadership and organisational justice. He has published a number of journal articles and book chapters on these constructs. As the corresponding author he can be contacted at: [email protected].

Smita Singh

Dr Smita Singh is a Senior Lecturer in International Business, Strategy, and Entrepreneurship at the Auckland University of Technology, Auckland, New Zealand. Her current research interests include entrepreneurship and social entrepreneurship, which she likes to explore through qualitative methods. She has been published in several journals, including International Small Business Journal, Third World Quarterly and Journal of Business Venturing.