Anup kumar Panda
Kalinga University, Raipur, Republic of India
Email: panda.nupa@gmail.com

 Abstract

When entrepreneurs encounter business failure, they have to bear the financial, emotional, and social cost of failure. Many types of research are made for finding out the cause of the failure of Indian entrepreneurs. In India, there are many start-ups at its operations in the initial stage, but their success rate is very low i.e. 10 percent and the failure rate is very high. The socio-cultural background, economic aspect, and technological aspect, risk appetite and various personality traits influence the success or failure of Indian Entrepreneurs. Many start-ups die before their first year of inception and they failed to survive.  Moreover, these studies suggest to policymakers to establish institutions to lower the costs of failure with the aim of increasing entrepreneurial activities. However, this article seeks to improve our understanding by providing more extensive and fine-grained assessments of the effects of the cost of business failure in entrepreneurship contexts. The review extensively takes stock of what has been studied on the effect of the costs of failure and provides future research questions to advance our knowledge.  While high social costs of failure can negatively impact the number of entrepreneurs in society, there can also be a positive impact on the quality of the entrepreneurs who enter and persist in their careers. In particular, this study finds evidence of a positive relationship between high social costs of business failure and the entry of entrepreneurs with growth and export orientation. The third essay finds that the stigma of failure is positively associated with social entrepreneurship entry decisions. Further, the stigma of failure affects revenue-generating type social entrepreneurship, but not NGO-type social entrepreneurship.

Keywords: Entrepreneur, Start-ups

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