Introdcution Following several studies and findings, the
IntrodcutionEntrepreneurs are leaders of the independent organisations who are willing totake the risk and accept the challenges faced by their organisations (Gartner,1988). Even though the definition of resilience sometimes varies, it is widelybelieved as one of the keys of entrepreneurial success (Martin ,2012; Martinand Sunley, 2015). Resilience can be defined as an ability to maintainstability, and control one’s emotional or psychological state of beingregardless of challenges and critical times (Bonanno, 2004, 2005; Eicher etal.
, 2015; Leipold and Greve, 2009). Previous studies have found that manyentrepreneurs experience personal difficulties, drive for achievement andloneliness, which then lead to entrepreneurial stress (Boyd & Gumpert,1983; Kuratko, 2013). Therefore, entrepreneurs will face many personal andorganisational challenges for which they will need to be resilient to overcomethese adversities to stay productive and maintain their high work ethic. The ideaof resilience is becoming more popular and interesting field of study as it isimportant part of entrepreneurship and psychology (Bullough et al., 2014). However,there is no fixed and agreed definition of resilience, nor the widely usedmethod to examine or analyse the concept (Luther et al.
, 2000; Moenkemeyer etal., 2012). Following several studies and findings, the psychologists believedthat resilience the individuals are able to develop resilience over time andlearn how to address several difficulties and adversities (Masten at al., 2002;Youssef and Luthans, 2005).Entrepreneurial setbacks often are very costly and painful both emotionally andfinancially, regardless if it is major or minor failure (Coelho & McClure,2005). However, if the entrepreneurs are emotionally strong, then they can useadversities as an opportunity to learn and improve (Cope, 2005; Cope, 2011;McGrath, 1999; Politis, 2005, Singh, Corner & Pavlovich, 2007).Organisational setbacks can enable the entrepreneurs to expand their skill-setand knowledge which will then lead them to success (Huovinen & Tihula,2008). According to Bandura the studies showed that the entrepreneurs have high levelof self-efficacy (Bandura, 1986; 1997; 2001).
Self-efficacy can be defined as one’sconfidence and drive to accept and face new challenges, and unwillingness togive up during adversity (Bandura et al., 2001; Bandura et al., 2003). Therefore,self-efficacy can be directly linked to resilience as one of the importantqualities resilient entrepreneur. Entrepreneurs face many challenges duringdifferent stages of their business, and the resilient entrepreneurs are theones who are able to adapt quickly and improve through pivoting and innovation(Reinmoeller & Baarwijk, 2005). Moreover, resilient entrepreneurs havecapacity to accept different circumstances and use their experience to facechallenges and avoid negative emotions through using their positive view onchallenging times (Tugade& Fredrickson, 2004).
The aim of the researchThe aim of this research is to examine the importance and understanding ofresilience in entrepreneurial success for successful entrepreneurs. The researchwill analyse how the entrepreneurs face their challenges and how they overcomethese obstacles. Moreover, how do they use the setbacks to their advantage toimprove their strategy and entrepreneurial skill-set in order to succeed inbusiness.
The aims of this study are:· Exploring and Reviewing existing researchesregarding the psychological and entrepreneurial resilience.· Analyse the connection between resilience andsuccessful entrepreneurship.· Interview the entrepreneurs and understandresilience in their experience.· Analyse the importance of resilience Structure of theReport The report will be structured infive chapters. First chapter will provide a background information about theresearch topic and explanation of the aim of the research. Second part willmove on to literature review which will discuss entrepreneurial resilience andthe previous studies conducted around the topic. Third chapter will discuss andprovide in depth information regarding the methodology of this study and howthe data will be collected from the entrepreneurs.
The Fourth chapter will analysethe findings and if the anticipated outcome of the research was closely relatedto the final results of the research. Finally, in the fifth chapter the overallconclusion and recommendations of the study will be provided. Literature Review Researchersof entrepreneurial resilience use previously conducted studies on resiliencefrom psychology and link it in entrepreneurship (Bullough and Renko, 2013;Manzano and Ayala, 2013; Vries and Shields, 2006). The concept ofentrepreneurial resilience is becoming more recognised and valued as the timepasses, however, the current knowledge on the idea is still limited and someaspects are still not agreed yet (Leipold and Greve, 2009; Luthans et al.,2006). The business environment in modern economy is immensely competitive,therefore, it takes strong characteristics for entrepreneurs in order tosucceed. Moreover, mind-set towards the entrepreneurial failure is essential, asone must pursue their ambition despite the adversities to overcome them andbecome successful (De Vries, 1977).
The ability to learn from failure is crucialin life and even more so in entrepreneurship, moreover, there are several caseswhich show the resilience during failures have led to success inentrepreneurial ventures (De Vries, 1977; Gratzer, 2001). Furthermore, theuncertain understanding of Entrepreneurial resilience is caused due to the factthat it is understood in different ways in many countries, i.e.
cultures andsocial norms are affecting the entrepreneurs’ views regarding resilience andfailure. Additionally, the statistics show that failure in the United states isacknowledged as the opportunity to learn, and use it for future decisions and failuredoes not cause feeling of shame in people (European Commission, 2003; Vaillant& Lafuente, 2007). However, entrepreneurial failure in Europe and Japan isrecognised as social humiliation and people are much less accepting towardsfailure, which means that there are less resilient entrepreneurs there (EuropeanCommission, 2003; Vaillantt & Lafuente, 2007). Thus, the importance ofresilience in entrepreneurship is unquestionably crucial, however, theresilient drive towards the goal can also be depended on country in which theentrepreneur is starting the venture as more lenient countries towards failurewill encourage entrepreneurs to try to overcome the failure. Furthermore, thereare several variables in entrepreneurship and there is a need to come up with atheory which will connect and analyse the relationship of these variables(Wortman, 1987). Hayward et al. (2010) suggest that there is direct correlationbetween venture success and the resilience of entrepreneurs. However, accordingto Kuratko and Hodgetts (2001) the researches on entrepreneurship is increasingand progressing, also the field develops further, but there is still nocomplete framework or theory of entrepreneurship and entrepreneurialresilience.
There are two widely researched aspects of entrepreneurial resilience, for example,entrepreneurial cognition, which examines the way the entrepreneurs think(Mitchell et al., 2002). Cognitive aspect of entrepreneurial resilience isbelieved to be decision making, self-efficacy, and reason why entrepreneurs arewilling to take risk and accept the challenges (Sanchez, Carballo , 2011). Resilience attribution theory is also important aspect of entrepreneurship.Furthermore, attribution theory analyses how the individuals understand andtake the causes and effects of certain actions (Heider, 1958; 1986). McClelland(1961) suggests that most entrepreneurs strongly believe that they are thereason why the venture succeeds or fails, and they are accountable to theiractions, which helps their resilient drive to overcome the obstacles.
Therefore,the attitude towards the outcomes of the own decisions is important to reactaccordingly in case everything does not progress as planned. Cognitive aspectof entrepreneurship is believed to be using own intellect to assess thesituation and make judgements or decisions accordingly (Mitchell et al., 2002).
He cognitive abilities of the entrepreneur is crucial and in direct correlationwith the venture’s success as many aspects of business will be depended on theentrepreneurs’ judgements and assumptions which will then result in success orfailure. The resilient entrepreneurs are the ones who make difference and whodecides whether the venture succeeds or not, as they make the calls and quickadaptation in high impact challenges and critical thinking will make neededchanges to overcome the adversities (Van Praag, 2003). Therefore, manyresearchers suggest the direct correlation of resilience and success inentrepreneurial environment.
Frederickson et al. (2003) suggested positiveattitude towards challenges enable resilient entrepreneurs to be much morelikely to succeed than less resilient entrepreneurs.