Failure is inherent to the entrepreneurship process, yet, this
frequent outcome from entrepreneurial efforts was overlooked. The
entrepreneurship field has started to take failure seriously, with
a growing body of literature focusing on the impact that failure
has on entrepreneurs. Insights from entrepreneurial failure have
the potential to provide valuable knowledge on how entrepreneurs
learn from experience, the antecedents to habitual
entrepreneurship, and the well-being and financial risks of
independent entrepreneurship. Understanding Entrepreneurial Failure
takes stock of the emerging body of literature on entrepreneurial
failure with a focus on how failure has been conceptualized, the
impact that failure has on entrepreneurs, and the different
theoretical and methodical approaches taken to understand failure
to lay the foundation for identifying new avenues for future
research. This review is focused on entrepreneurial failure in the
context of independent entrepreneurship where the entrepreneur and
their business are tightly intertwined.
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