The Impact of Failure on Re-entrepreneurial Performance:

A Mediation Model using Bootstrap

ChenFei Meng

The Department of Business Administration, Zhejiang Gongshang University School, Hangzhou, Zhejiang Province, China

Keywords: Entrepreneurial Failure, Entrepreneurial Resilience, Re-Entrepreneurial Performance.

Abstract: Since the outbreak of the new champions league in 2019, more entrepreneurial companies impacted by the

economic crisis, the failure is more common phenomenon, and entrepreneurship failure as an important

situation, business process is unique to the entrepreneurs, for entrepreneurs entrepreneurship again more has

information value, for entrepreneurs to entrepreneurship and improve performance and provide the possibility.

Therefore, this paper discusses the impact of failure scenarios on entrepreneurial resilience, and investigates

re-entrepreneurial performance as a result to illustrate the positive effect of entrepreneurial failure through

entrepreneurial resilience. A total of 252 valid questionnaires were collected, and SPSS was used for reliability

and validity test, regression analysis and Bootstrap test. The conclusions are as follows: entrepreneurial

resilience is a key potential mechanism for entrepreneurs to move from failure to success, and plays a

significant mediating role. This paper provides a new perspective for analyzing the psychological mechanism

and behavior of entrepreneurs in the context of entrepreneurial failure and puts forward future research

directions.

1 INTRODUCTION

With the rising cost of living, the increasing difficulty

of employment and work pressure, as well as the

temptation of high income from we-media, more and

more people begin to participate in the upsurge of

entrepreneurship. However, the entrepreneurial

process is full of challenges and uncertainties, and

many blind entrepreneurs, even experienced

entrepreneurs, will inevitably fail. Especially in the

context of the epidemic last year, entrepreneurs faced

various difficulties, such as lack of capital, technical

bottlenecks and brain drain, which brought great

pressure to entrepreneurs and even threatened their

survival. In this crisis, a large number of small

businesses have been hit, causing economic, social

and psychological damage to entrepreneurs, for

whom failure is not the desired outcome. At the same

time, we also see that some entrepreneurs still persist

in difficulties, learn from failure, recover quickly, and

finally turn the tide against the wind and achieve

success. In fact, although entrepreneurial failure

brings negative impact to entrepreneurs, it may also

become the key to success for entrepreneurs to start

again (Bandura 2002). Failure is the mother of

success is a well-known proverb. It can be found that

those entrepreneurs who start again after failure tend

to become more determined and adapt to risks,

overcome numerous difficulties in the following

entrepreneurial process and achieve higher

entrepreneurial performance. So you can think,

entrepreneurs in order to ensure the sustainable

development of enterprises, and maintain a good

business performance in the grim situation, need to

quickly recover from failure and coping with

adversity, and toughness is an important

psychological factor, and entrepreneurs to grow from

the failure, enter new entrepreneurial activities and

potential mechanism of success.

At present, the research level and perspective of

entrepreneurial failure have made great progress. The

academic circle began to view entrepreneurial failure

from a positive perspective and pay attention to the

positive impact of failure on future enterprises.

Scholars analyzed the relationship between

entrepreneurial failure and subsequent

entrepreneurial performance from different positive

perspectives (Duchek 2018). One is based on the

reflection effect of prospect theory, studies have

found that a failure of entrepreneurs tend to

challenging entrepreneurial activity, the failures of

the past with an unique personal experience, bring

574

Meng, C.

The Impact of Failure on Re-entrepreneurial Performance: A Mediation Model using Bootstrap.

DOI: 10.5220/0011192900003440

In Proceedings of the International Conference on Big Data Economy and Digital Management (BDEDM 2022), pages 574-581

ISBN: 978-989-758-593-7

valuable resources, promote the business fail to study,

in the next new entrepreneurial activity to improve

business performance. Secondly, from the

perspective of cognition, some scholars point out that

the cognitive ability of entrepreneurs changes after

they experience failure, which helps entrepreneurs re-

enter entrepreneurial activities and seize new

opportunities. Third, from the perspective of

resources, it is found that past failures can temper the

will of entrepreneurs, reduce the negative emotions

caused by failures, and enhance the psychological

capital such as optimism and tenacity, so as to better

try new risks. However, most of these studies focus

on the results and fail to clarify the processes

involved (Fatoki 2018). There is a kind of argument

is that business fail in addition to entrepreneurs to

bring different results, there is also a process of

rebound, namely after suffer stage there will be a

process of self recovery and adaptation, although

there are many literature has pointed out that under

the crisis business resilience building mechanism, but

the lack of the pioneering toughness how to link

failure and new venture performance research, That

is, whether entrepreneurial failure can improve new

entrepreneurial performance by shaping

entrepreneurial resilience, which is the process

mechanism of this study (Bandura 2015).

Therefore, this study introduces the positive

psychological function of entrepreneurial resilience

into the field of entrepreneurial failure, and discusses

the cost consequences of entrepreneurial failure,

whether and under what conditions these

consequences will affect subsequent entrepreneurial

resilience, and further affect the performance of re-

entrepreneurship. This not only provides a new idea

for the theoretical explanation, but also helps to

inspire the construction of psychological functions at

the individual level and help entrepreneurs cope with

the risks encountered in the process of

entrepreneurship.

This study has made the following three important

contributions. First of all, although some research

started from a positive perspective on business

failure, and focus on the positive influence for the

future development of failure for entrepreneurs, puts

forward the failure study coping mechanism, but

ignores the entrepreneurial tenacity is the importance

of this mental ability in entrepreneurial process, about

how business resilience from the failure to develop

and help entrepreneurs to cope with the crisis analysis

of the mechanism is not yet complete. Based on the

ternary interactive determinism of social cognition

theory, this study analyzes that in order to re-enter

entrepreneurial activities after failure, entrepreneurs

need to cultivate resilience to help them overcome the

crisis and achieve growth and transformation.

Specifically, entrepreneurial failure is a risk factor for

the development of resilience, while success is the

result of resilience. Through positive adaptation and

response, entrepreneurs build resilience and drive

subsequent entrepreneurial success. Secondly, based

on the theory of self-adjustment, determine the

mindfulness as a specific state of mind, it is the

manner in which individual's information processing,

provide entrepreneurs with regulate emotions after

failure and improve the ability of cognition, and

through the impact toughness and entrepreneurship

failure relationship impact on subsequent

performance, enrich the mindfulness research in the

field of entrepreneurship, It provides a unique

theoretical background for understanding the

phenomenon of success after failure. Finally, this

study also provides practical significance to help

guide entrepreneurs to quickly adjust themselves

under pressure, use failure experience and

mindfulness to build individual resilience,

successfully cope with the crisis and continuously

promote the follow-up entrepreneurial performance.

2 THEORY AND HYPOTHESIS

2.1 Entrepreneurial Failure &

Entrepreneurial Resilience

Entrepreneurial resilience refers to the ability of

entrepreneurs to recover from adversity, achieve good

adaptation, successfully cope with challenges, and

achieve positive results in adversity despite adverse

events such as difficulties, pressure, and failure. In

entrepreneurial practice, entrepreneurial resilience has

become an ability for entrepreneurs to recover quickly

in the face of difficulties and challenges, enabling

entrepreneurs to better manage potential crises,

setbacks or challenges, adapt to adversity and become

stronger. Therefore, entrepreneurial resilience plays

an important role in entrepreneurial activities,

especially in the context of failure (Adomako 2018).

In previous studies, most scholars only focused on the

impact of individual cognition and trait factors on

resilience, such as self-efficacy, optimism and

perseverance, while ignoring the particularity of

entrepreneurial background, that is, entrepreneurial

resilience can be regarded as the result of a process

derived from the experience of entrepreneurs. Later,

some scholars speculated that the experience of crisis

situations (social capital, natural disaster, economic

shock, etc.) can improve entrepreneurial resilience,

The Impact of Failure on Re-entrepreneurial Performance: A Mediation Model using Bootstrap

575

which represents the persistence of entrepreneurs in

the face of adversity after the occurrence of crisis, or

the ability to take risks again after failure. To be

specific, although entrepreneurial failure imposes

economic, social and emotional burdens on

entrepreneurs, crisis experience may further stimulate

the formation and development of entrepreneurial

resilience. Therefore, failure events as a challenge

factor may be a potential condition for the

development of entrepreneurial resilience (Boso

2019). Therefore, based on social cognition theory,

this study focuses on how entrepreneurial failure

affects the construction of entrepreneurs'

psychological rebound mechanism, proving that

entrepreneurial failure may be the antecedent of

developmental resilience, which not only opens up a

new theoretical perspective for the construction of

entrepreneurial resilience, but also endows

entrepreneurial failure with positive significance.

According to social cognition theory, personal

factors, environmental factors and behavioral factors

are mutually determining factors. From an individual

perspective, the individual experience of

entrepreneurial failure is an effective stimulus factor

to stimulate entrepreneurial resilience, which can

directly or indirectly affect individual cognitive

behavior. From the perspective of situation, the cost

of failure is a typical risk factor in failure situation,

which can stimulate entrepreneurs' resilience by

promoting the awareness and integration of

protective factors. Ultimately, the entrepreneur

achieves positive response and success by forming

resilience as a protective mechanism in difficult

situations (Cardon 2011). In other words, because the

entrepreneurial activity has great uncertainty and

high risk, the entrepreneur's personality and ability to

have higher requirements, so entrepreneurs often

have some positive qualities are different from

ordinary workers, such as high tenacity, optimistic,

self-efficacy, highly beliefs, achievement motivation,

risk perception ability and interpersonal

communication ability, etc., These qualities that

make them even after exposure to the failure of the

influence of economic cost, social cost and

psychological cost, but in personal quality factors and

entrepreneurial experience, under the interaction of

entrepreneurs still suffer stimulation may from failure

found exhibited higher cognitive level and better

entrepreneurship, failure become entrepreneurs to

strengthen its own impetus, Encourage entrepreneurs

to bounce back from failure and re-enter

entrepreneurship (Cope 2011).

It can be seen that entrepreneurial resilience, as a

dynamic ability to cope with crisis, determines that

entrepreneurs adjust and start again from failure and

make use of the positive factors in failure experience

to achieve higher performance. Integrated the above

discussion, the mechanism of action of

entrepreneurial toughness showed that ductile failure

experience may be entrepreneurs build a stimulating

factor, and this article research object for small start-

ups, small micro enterprise on a smaller scale,

investment, technology and emotional resources are

limited, therefore, a failed loss is relatively less, in

general, This paper assumes that entrepreneurs have

a chance to successfully cope with the crisis and

exhibit strong resilience.

H1: There is a positive correlation between

entrepreneurial failure cost and entrepreneurial

resilience.

2.2 Entrepreneurial Resilience &

Re-entrepreneurial Performance

Entrepreneurial resilience is an important factor for

entrepreneurs to achieve success, so this study takes

re-entrepreneurial performance as the result of

entrepreneurial resilience. Entrepreneurial resilience

has been proved to play a positive role in the success

of enterprises in multiple studies, which is usually

manifested in the process of helping individuals to

recover from adversity, cope with challenges and

actively adapt (He 2020). Studies have highlighted

the positive significance of entrepreneurial resilience

from different perspectives. From the perspective of

resources, entrepreneurial resilience is a resource that

entrepreneurs can mobilize and use in difficult

situations to help them better cope with difficulties

and take actions (Kumju 2019). By studying

entrepreneurs in Afghanistan, they found that in

hostile environments such as war, entrepreneurial

resilience can boost entrepreneurship and help

entrepreneurs overcome obstacles to progress. Based

on emotions broaden and build the Angle of view,

positive emotions broaden the scope of the attention

of the individual, to make them more open in the

perception of pressure situation, a more constructive

and creative, and tough will produce positive

emotions, such as desire, excitement and happiness,

so resilient entrepreneurs can better adjust the

emotional response of adverse circumstances,

Interpreting their startup environment as constructive

challenges they are capable of tackling increases the

chances of success. From the cognitive perspective,

entrepreneurial resilience is regarded as a necessary

cognitive ability and way of thinking for

entrepreneurial success. Entrepreneurs with

resilience are able to effectively cope with various

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576

threats and pressures in entrepreneurship, especially

to find opportunities and move forward from crises.

Duchek also noted that entrepreneurs with high levels

of entrepreneurial resilience are more likely to see

opportunities in difficult situations and effectively

overcome the stress of starting a business to succeed.

In combination with social cognition theory, this

study argues that individuals with entrepreneurial

resilience can improve the situation and enhance

subsequent enterprise performance by changing the

perception of failure (Santoro 2020). First, business

fail to entrepreneurs economic, social and emotional

aspects of negative batter and trauma, and prone to

negative cognition, entrepreneurial toughness can

change the cognitive, of the individuals in the

adversity can well adapt to continue to maintain a

positive attitude and persistent efforts, thus

improving expectations of subsequent

entrepreneurship and feasibility (Jeng 2019). Second,

have toughness of individuals through self-regulation

mechanism actively resist risk factors, take the

initiative to find a solution to the dilemma, do not

complain, do not panic, do not give up speaking out

of turn, actively try to business again, in the process

of the self transcendence, cognitive level and self-

consciousness significantly increased, for the new

entrepreneurial activities inspire confidence and

create success. In summary, this paper argues that

entrepreneurial resilience can promote re-

entrepreneurial performance.

H2: There is a positive correlation between

entrepreneurial toughness and re-entrepreneurial

performance.

2.3 The Mediating Role of

Entrepreneurial Resilience

First, the cost of failure promotes resilience. Risk

factors or setbacks are one of the conditions for the

development of resilience. Resilience mainly comes

from individuals' experiences of successfully coping

with stress and danger in adversity, especially the

severity of negative events and risk factors, which

significantly affect the formation of resilience (Liu

2019). Entrepreneurs before failure is a startup

process of the construction of the toughness, the

failure of the economic, social and psychological and

other costs increased the entrepreneurs perception of

failure loss degree, in the face of the serious damages

cases, entrepreneurs showed high risk tendency, will

actively adapt and cope with risks, rebound from

adversity, enhance their resilience (Corner 2017).

This argument is supported by the research of Duchek

et al. In his study, outstanding entrepreneurs have

carried out early entrepreneurial activities before

their current achievements, and the costs they paid in

the past have shaped their strong entrepreneurial

resilience, which further supports the construction

mechanism of resilience.

Secondly, as an important resource for

entrepreneurs in difficult situations, resilience

indicates that entrepreneurs with strong resilience can

easily cope with various pressures in entrepreneurial

activities, and are more likely to achieve success than

those without resilience (Weinberger 2018). By

studying entrepreneurs in Afghanistan,

Bullough et al.

found that entrepreneurial resilience can still promote

entrepreneurs' entrepreneurial actions and help them

overcome obstacles in the face of adverse

circumstances such as war. To support this argument,

Duchek also emphasized that entrepreneurs with high

levels of entrepreneurial resilience are more likely to

identify opportunities in difficult situations,

effectively overcome the stress of starting a business,

and succeed. It further shows that entrepreneurs with

strong entrepreneurial resilience will maintain a

positive attitude when they encounter failure,

constantly improve adversity and change the

perception of failure, so as to self-adjust and adapt,

inspire confidence in new entrepreneurial activities

and improve the performance of new enterprises. In

addition, for entrepreneurs of small and micro

enterprises, the loss is generally within a certain

range. When the failure reveals the gap between the

status quo and self-set goals, entrepreneurs are easy

to be motivated by the stimulus factors, so as to

enhance the level of cognition and resilience to make

up for potential deficiencies, and finally achieve

success.

Taking these arguments together with social

cognitive theory, this study finds that recovering from

failure and re-entering entrepreneurial activity is a

unique rebound process for entrepreneurs that builds

stronger resilience and leads to positive outcomes. It

follows that resilient entrepreneurs not only

recognize the consequences of their startup's failure,

but also know how to profit from it and develop a new

startup. According to the above inference, this study

expects that there is an intermediary relationship

between the cost of entrepreneurial failure and the

performance of re-entrepreneurship, that is,

entrepreneurial resilience is the result of

entrepreneurial failure and triggers the further

improvement of entrepreneurs' ability and the

performance level of new enterprises.

H3: Entrepreneurial resilience mediates the

relationship between entrepreneurial failure and re-

entrepreneurial performance.

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577

3 RESEARCH DESIGN

3.1 Sample Collection & Variable

Measurement

According to the definition of entrepreneurs and

again another enterprise, the data of this study is

derived from the established time in eight years,

founder of small enterprises and their research groups

choose experienced business fail serial entrepreneur

or the core of entrepreneurial team members, directly

involved in the entrepreneurial process, and the

ability to accurately describe the past business failure.

Because more special sample groups, through

multilateral consultation found that first-tier cities

and second-tier cities entrepreneurial energy level is

relatively high, small startups are numerous, and

visited many of startup hubs for small startups,

including hangzhou, shaoxing and ningbo and other

places of startup hubs, also identified around

experienced business fail and entrepreneurial friends

or relatives again. Online with the help of the

questionnaire star platform of professional

institutions, the questionnaire content is input and the

respondents are invited to fill in the questionnaire

through the link to avoid the embarrassment of direct

contact. The questionnaire survey lasted for nearly a

month. A total of 362 questionnaires were sent out

and 278 were recovered, with a recovery rate of

75.75%. 252 valid questionnaires were obtained after

removing invalid questionnaires with too many

missing values and unsatisfactory research objects.

Entrepreneurial failure. Cost is commonly used in

existing research, a failed to measure the severity of

the business fail, in the existing research, this paper

existing maturity scale and combined with domestic

entrepreneurship, from economic, psychological and

social three aspects of a total of 10 item measured,

using Likert5 point scoring scale, from 1 to 5 degree

respectively very do not meet to meet very much.

Specific questions include "I almost went bankrupt

because of a startup failure" and "a startup failure

affected my relationships with other stakeholders."

Entrepreneurial resilience. After referring to

various studies on entrepreneurial resilience, CD-

RISC-10 was used to measure entrepreneurial

resilience. There were 10 items in total, and each item

was evaluated by likert 5-point scale. "I can stay

focused under pressure," and "I consider myself a

strong person."

Re-entrepreneurial performance. The

measurement of entrepreneurial performance refers

to the research of Biggadke and Wang Huafeng and

other scholars, and measures entrepreneurial

performance by evaluating the growth rate and

success degree of a start-up compared with its

competitors in five aspects: number of employees,

sales, innovation, market share and profit.

3.2 Scale Design and Reliability

The constructs involved in this study included the

cost of entrepreneurial failure, entrepreneurial

resilience and re-entrepreneurial performance. The

Cronbach's α coefficients of each scale were 0.826,

0.879 and 0.859, respectively, which were all higher

than the acceptable standard value of 0.7, indicating

that the scale used in this study had good internal

consistency.

This study uses factor analysis to reveal whether

the internal structure of variables conforms to the

theoretical relationship of the study. Among them,

exploratory factor analysis results showed that KMO

values were all greater than 0.7, and significance P

<0.001, meeting the requirements of factor analysis.

Confirmatory factor analysis was performed, and all

the values were in line with the standard (X2 /Df

=1.875, CFI=0.905; IFI = 0.906; RMSEA=0.059),

with good structural validity.

4 HYPOTHESIS TESTING

4.1 Correlation Test

In this paper, Pearson correlation analysis was

conducted for each variable using SPSS. The mean

value, standard deviation and correlation coefficient

of each variable are shown in Table 1. It is found that

there is a good correlation between the cost of

entrepreneurial failure and entrepreneurial resilience

and re-entrepreneurial performance, which

preliminarily verifies the hypothesis test of this paper

and lays a foundation for the subsequent regression

analysis.

Table 1: Correlation analysis.

variable Mean SD 1 2 3

Entrepreneurial

failure

3.38 0.88 1

Entrepreneurial

resilience

3.98 0.63 0.259** 1

Re-

entrepreneurial

performance

3.67 0.76 0.232** 0.285** 1

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4.2 The Relationship between

Entrepreneurial Failure Cost,

Entrepreneurial Resilience and

Re-Entrepreneurial Performance

First, this paper proposes a hypothesis that the cost of

entrepreneurial failure has a positive effect on

entrepreneurial resilience. The results show that

entrepreneurial failure has a positive effect on

entrepreneurial resilience (β=0.263, P <0.001), and

the R-square value increases by 0.068, and the F

value changes significantly, indicating that model 2

has a better explanation of entrepreneurial resilience

than Model 1. This indicates that the path effect of

entrepreneurial failure cost to entrepreneurial

resilience is significant, that is, the cost of

entrepreneurial failure can promote the formation of

entrepreneurial resilience, so hypothesis 1 is

supported. Secondly, the impact of entrepreneurial

resilience on re-entrepreneurial performance is

examined. As shown in Table 2, Model 3 is the

benchmark model with control variables added, and

model 4 adds variable entrepreneurial resilience on

the basis of Model 3. In Model 4, the regression

coefficient of entrepreneurial resilience to re-

entrepreneurial performance is significantly positive

(β=0.278, P <0.01), and the change of R square is

0.070, and the change of F is significant, indicating

that Model 4 has a higher degree of explanation than

Model 3. Therefore, there is a significant positive

correlation between entrepreneurial resilience and re-

entrepreneurial performance, and hypothesis 2 is

supported.

Table 2: Regression analysis results.

variable

Entrepreneurial

resilience

Re-entrepreneurial

performance

Model 1 Model 2

Model

Model 4

gender -0.056 -0.073 -0.097 -0.081

age -0.233 -0.206 -0.016 0.049

education 0.151 0.163 0.116 0.073

Establish

ment Yea

0.153 0.135 0.031 -0.011

Number

entreprene

urship

0.102 0.075 0.027 -0.001

Entrepren

eurial

failure

0.263***

Entrepren

eurial

resilience

0.278**

variable

Entrepreneurial

resilience

Re-entrepreneurial

performance

Model 1 Model 2

Model

Model 4

R-square 0.091 0.159 0.025 0.095

F 4.953

7.729***

1.272

4.301***

4.3 The Mediation Effect

The SPSS macro developed by Preacher and Hayes

was adopted to test the mediation effect using the

Bootstrap method. The sample size was selected as

5000, the confidence interval was set as 95%, the

independent variable was selected as entrepreneurial

failure, the dependent variable was selected as

entrepreneurial performance, and the intermediary

variable was entrepreneurial toughness. The

following mediation analysis results were obtained,

as shown in Table 3. The total effect of independent

variable entrepreneurial failure on dependent variable

re-entrepreneurial performance is significant

(BootLLCI=0.094, BootULCI=0.295). The

mediating test results of entrepreneurial toughness

between entrepreneurial failure and re-

entrepreneurial performance do not contain 0,

indicating that the mediating effect is significant

(BootLLCI=0.007, BootULCI=0.091), and the

mediating effect value is 0.042. In addition, the direct

effect of entrepreneurial failure on re-entrepreneurial

performance is significant (BootLLCI=0.048,

BootULCI=0.257), and the effect value is 0.152.

Therefore, entrepreneurial resilience plays a

mediating role in the relationship between

entrepreneurial failure and re-entrepreneurial

performance.

EF: Entrepreneurial failure; ER: Entrepreneurial

resilience; EP: entrepreneurial performance.

Table 3: Results of Bootstrap mediation effect.

The path Effect

BootS

BootLL

BootUL

EF→ER

→EP

0.042 0.022 0.007 0.091

EC→EP 0.152 0.054 0.048 0.257

Total

effect

0.194 0.051 0.094 0.295

4.4 Analysis of Research Results

This paper aims to explain the internal relationship

between entrepreneurial failure cost, entrepreneurial

resilience and re-entrepreneurial performance,

analyze the impact mechanism of entrepreneurial

failure cost on entrepreneurial resilience, and verify

The Impact of Failure on Re-entrepreneurial Performance: A Mediation Model using Bootstrap

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the mediating effect of entrepreneurial resilience.

Based on theory and practice, this study proposes

hypotheses, constructs theoretical models, and

collects relevant data for empirical analysis. The data

analysis results show that all the hypotheses proposed

in this study are verified, which indicates that

entrepreneurial failure has an impact on

entrepreneurial performance and entrepreneurial

resilience plays a mediating role.

First, entrepreneurial failure has certain positive

significance for entrepreneurial resilience. Despite

the high cost of entrepreneurial failure, the unique

personal experience of entrepreneurs can effectively

stimulate the key factors of entrepreneurial resilience,

help entrepreneurs re-examine their own behavior

and attitude, improve their knowledge level, and get

out of the dilemma of failure to grow and develop. In

addition, entrepreneurial resilience is an important

factor for entrepreneurs to achieve subsequent

success. Entrepreneurs with resilience will re-

examine their own behaviors and attitudes and make

greater efforts in subsequent entrepreneurial

behaviors, thus improving their subsequent

entrepreneurial performance.

Second, entrepreneurial resilience mediates the

relationship between entrepreneurial failure cost and

re-entrepreneurial performance. Based on the three

dimensional interactive determinism of social

cognition theory, this paper argues that

entrepreneurial resilience mainly comes from

individuals' experience of coping successfully with

pressure and danger in adversity, and entrepreneurial

failure provides the conditions for the development of

resilience. After failure, entrepreneurs actively resist

the crisis through self-regulation mechanism, recover

from adversity and transcend themselves, shaping

strong entrepreneurial resilience and promoting the

successful development of subsequent enterprises.

5 CONCLUSIONS

5.1 Theoretical Significance

First of all, this study investigates the behavior of

entrepreneurs after failure, explaining how the past

failure experience affects them, and how they re-enter

the entrepreneurial activities and achieve good

performance after experiencing losses. Secondly,

based on theoretical methods, this study provides an

intermediary mechanism for how entrepreneurs who

fail to make use of the dynamic ability of

entrepreneurial resilience to improve their subsequent

entrepreneurial performance. Not only clarify the

toughness of the dynamic structure and forming

process and failure cost for the impact of

entrepreneurial tenacity, also analyzed the ins and

outs of the entrepreneurs entrepreneurship toughness

change after the failure, to see how the toughness

construct and the function mechanism of path

analysis, to explore the risk situation of entrepreneur

provides guidance cognitive and behavioral changes.

The results of this study suggest that entrepreneurs

who have experienced failure but re-engage in

entrepreneurship can develop stronger

entrepreneurial resilience and use this ability to

benefit from past experience, gain entrepreneurial

experience and resources, change cognitive patterns,

and improve subsequent performance.

Based on the ternary interactive determinism of

social cognition theory, this study analyzes that in

order to re-enter entrepreneurial activities after

failure, entrepreneurs need to cultivate resilience to

help them overcome the crisis and achieve growth

and transformation. Specifically, entrepreneurial

failure is a risk factor for the development of

resilience, while success is the result of resilience.

Through positive adaptation and response,

entrepreneurs build resilience and drive subsequent

entrepreneurial success.

5.2 Practical Significance

First, the results show that, in addition to the losses

associated with failure, entrepreneurial failure

enables entrepreneurs to build resilience in crisis

situations, which subsequently drives the

performance of new ventures. In other words, failure

should not be seen as the end of the entrepreneurial

journey, but rather as an opportunity to make a better

entrepreneurial move. This helps entrepreneurs face

up to the failure of entrepreneurship, understand that

failure will bring many opportunities as well as

negative effects. Entrepreneurs should view failure

positively and objectively, and take reasonable

measures to convert the stimulation of failure into

motivation and goals, so as to improve their

entrepreneurial ability. Secondly, it provides

guidance for entrepreneurs' stress response and

handling in stressful situations, so as to help

entrepreneurs quickly adjust themselves and walk out

of the shadow of past failures. Inspiration

entrepreneurs need to fully carry out resilience

construction, and use resilience as an important

psychological element to improve their

entrepreneurial ability in adversity, and continuously

promote the performance of new entrepreneurial

activities.

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5.3 Research Prospects and

Deficiencies

Although the empirical analysis results are basically

in line with the theoretical expectations, there are still

some deficiencies in this study that need to be

improved. First, although the study with the

background of uniqueness, methods using large

sample data, but the questionnaire is not controllable,

and the object of the research are mainly concentrated

in the small micro enterprise or small entrepreneurial

teams had failure experience, and again into the

venture entrepreneurs, therefore, the application

range of the conclusions have certain limitations.

Secondly, this study did not test the threshold effect

of failure loss on re-entrepreneurial performance and

entrepreneurial resilience. Since the research group is

small and micro business owners and members of

small entrepreneurial team, the loss degree is smaller

than that of entrepreneurial veterans or mature

medium and large entrepreneurial enterprises, it can

be considered that entrepreneurs with higher loss

degree may produce threshold effect. To this end, an

important approach for future research is to study the

extent to which the severity of loss explains the

impact on entrepreneurial resilience and re-

entrepreneurial performance. Finally, this paper only

discusses the possible positive effects of

entrepreneurial failure cost on entrepreneurial

resilience, which is a complex concept and requires

comprehensive consideration of the interaction

mechanism between situational factors and individual

factors. Is resilience a relatively stable trait or a

situational psychological state? Whether resilience

varies from event to event and from person to person,

and the understanding and recognition of failure by

entrepreneurs with different resilience is also worth

further research and discussion.

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