Serial Entrepreneurship Dynamics: Unveiling the Role of Setbacks, Emergent Learning, and their Influence on Firm Resilience

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.