Abstract:
This study explores how setbacks and failures experienced by entrepreneurs
influence the resilience of their new ventures, emphasizing the power of learning and
adaptation. Grounded in experiential learning theory, it examines how setbacks
reshape entrepreneurs’ perspectives, providing valuable lessons that prepare them to
seize future opportunities. While setbacks may diminish risk-taking in some cases,
they often serve as a foundation for growth and revitalization, enabling
entrepreneurs to bounce back stronger. The research investigates four key
hypotheses, focusing on the relationships between entrepreneurial setbacks, emergent
learning, entrepreneurial alertness, and firm resilience. Data was collected from 244
serial entrepreneurs who had previously faced challenges like business closures,
mergers, or significant losses. Using Structural Equation Modelling (SEM), the
study rigorously analysed the data to test its reliability and uncover meaningful
patterns. The findings demonstrate that setbacks have a significant and direct impact
on firm resilience, contributing positively to the development of entrepreneurial
alertness and emergent learning.
