An assessment of initial business entrepreneurial failure and its impact on subsequent success: a case study of four entrepreneurs in Iringa

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University of Dar es Salaam
Initial business failure is an important source of the development of new skills and knowledge that can be highly useful in subsequent business success. For years the scholars in the field of business operations have concentrated in studying success than failure. It came to the concern of the researcher to extract the relationship between initial failure and future business success. The major objective of the study was to assess the impact of initial business failure on subsequent success. This being the major objective, was supported by specific objectives which were assessing the motives for one to engage in business, asses factors which leads to failure and asses the learning experience. In order to come up with the drawn conclusion, the researcher used case study design as it supports for the exploratory study to come up with a sound results. The study area (Iringa) was selected as the practical evidence showed there are business operators who are currently run business successful and have an experience of failure. From this research, it has found clear that the once failed business operators are capable of learning from the. Experience of failure and explore the available opportunity for the subsequent success. Learning is the major aspect for success as we found effective businessmen learn from everything, from every person and from all environmental changes. It is the learning process which provides new knowledge, new skills and new information for success. From the findings and the drawn conclusion (with its limitations) the research provides an understanding to entrepreneurs, policy maker, and financial institutions that failure is not an end but is an experience that is useful to business operators for it is useful to business operators for better performance than before. So the government policy makers and financial institutions should not isolate the failed business owners rather they should give them chance, support them and encourage to go on. It should be realized that business failure is not an end to the failed operators rather it is a source of knowledge for future effective operation. Owners are capable to learn mistakes and problems happened, which caused business failure and use of this knowledge in the process of opportunity recognition, from which the best discovered opportunity when explored leads to success.
Available in print form, EAF collection, Dr. Wilbert Chagula Library, class mark ( THS EAF HB615.K522 )
Entrepreneurship, Success and failure, Iringa
Kibasa, F ( 2010 ) An assessment of initial business entrepreneurial failure and its impact on subsequent success: a case study of four entrepreneurs in Iringa, Masters dissertation, University of Dar es Salaam, Dar es Salaam.