Differing Perceptions of New Venture Failure: A Matched Exploratory Study of Venture Capitalists and Entrepreneurs

摘要: * "The key factor [that caused our failure] was that external market had changed after we introduced the product." "Failure to provide customer what he [or she] wanted cost us some jobs." bad news is missed a lot of [problems] been in business before, would have caught." "We problems moving fast enough an extraordinarily industry, so couldn't capitalize on opportunity created." The above quotes from entrepreneurs highlight haunt new ventures their struggle survive. In fact, Timmons (1994) notes over 20 percent fail within one year, and 66 six years. large percentage failures perceived drain national resources has point contention. Robert Reich asserts "chronic entrepreneurialism" undermining America's competitive strength because entrepreneurial splinter "American manufacturing power into too many small pieces" (Castro 1988, p. 48). fact indisputable; however, others argue learning accrued by failed entrepreneur may outweigh costs society (Shapero 1981; Vesper 1980). Nevertheless, given societal involved, research needed examine characteristics venture failure. Introducing effects capitalists (VC) survival important differences failure rates VC non-VC backed firms. Although overall rate extremely high, Dorsey (1979) found VC-funded enterprises substantially lower. Only 18 companies seven years compared 75 funded Even though much lower for entrepreneurs, VCs felt those surviving adequate return (Ruhnka, Feldman, Dean 1992). Ruhnka, termed these "living dead." Prior points relationship between presence backing rates. Given such fail, it meaningful investigate causes poor performance context both VC. purpose this exploratory study viewpoint using attribution theory perspective (Weiner 1979). A fundamental question posed: Do perceive differently? If so, why? Attribution provides useful framework perceptions regarding Attributions implications how approach problem failing (Ford 1985). Incorrect attributions result misapplication could ultimately cause future failures. Venture Failure Factors Most organizational studies focused "successful" endeavors; limited variety reasons. First, difficult, if not impossible, do financial analysis data are typically public. Thus, researchers must locate entrepreneurs. As Bruno, Leidecker, Harder (1986) note, even identified, or she be hesitant discuss Moreover, who agree interview understand able articulate factors contributed demise, especially lengthy period time passed since (Bruno, 1986; Bruno Leidecker 1987). instance, resort sensemaking (post-hoc rationalizations why failed). …