A Study on the Effect of Entrepreneurial Failure on Resilience, Entrepreneurial Passion, and Entrepreneurial Self-efficacy

Entrepreneurship, employment, social and economic development are interconnected and intertwining concepts. Entrepreneurial self-efficacy is one of the key antecedents of developing entrepreneurial intent. By working on the integrated model of Schlaegel & Koenig (2014) for predicting entrepreneurial intent, we explored how entrepreneurial failure relates to entrepreneurial self-efficacy. Additionally, we included resilience and entrepreneurial passion in the study for their potential mediating roles. The structural equation modeling technique was deployed for data analysis. The findings of the study show that entrepreneurial failure is not bad in itself. It is actually good – and good for two different and equally strong reasons: it builds resilience and simultaneously reinforces entrepreneurial passion. Both of those, in turn, increase entrepreneurial self-efficacy.