Failure is probably the one thing that almost all entrepreneurs face somewhere in their endeavours. At the same time, failure is probably the last thing on the mind of an entrepreneur starting out on the entrepreneurial process (Pretorius 2008). However, there is a bias in the literature that relates the failure of the business and the failure of the entrepreneur (Stokes and Blackburn 2002). This paper summarises studies on failure, the main reasons for business and new venture failure and emphasis on the difference between business failure and entrepreneurs’ failure. We commence with common definitions of failure from prominent scholars, followed by an interpretation from an entrepreneurial perspective. Failure frameworks are reviewed, highlighting the prominent causes business and new ventures failure.
Proceedings of the Small Enterprise Association of Australia and New Zealand Conference (SEAANZ 2009), Wellington, New Zealand, 02 September 2009