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Entrepreneurial Failure and Follow-up Entrepreneurial Performance of Small-scale Enterprises of Farmers in China

Research domain:
Livelihoods in rural areas

Project duration:
01.01.2018 - 30.12.2019

Entrepreneurship plays an important role in economic development in transition economies. In rural China, farmers’ entrepreneurship has become an effective way to decrease poverty, increase farmers' employment opportunities and narrow the gap between urban and rural areas. With the vigorous development of entrepreneurial activities, however, entrepreneurial failure is frequent because entrepreneurial venture is full of risk and uncertainty (Knott and Posen 2005;Lee et al. 2011). At least half of the new ventures break down within five years (Aldrich and Ruef, 2006), especially farmers, whose education level is generally not high and entrepreneurial resources is limited to obtain, their entrepreneurial failure rate is much higher than any others.

The vast majority of entrepreneurship research focuses on entrepreneurs who gained success, while those who eventually fail entrepreneurship, are rarely concerned.

Based on the above background, this study aims to answer the following questions:

(1) why did the farmer entrepreneur fail, their failure due to the external environment or internal constraint?

(2) Did farmer entrepreneurs learn after entrepreneurial failure, how entrepreneurial failure affects the farmers’ learning mode and learning content?

(3) Can entrepreneurial failure and entrepreneurial learning improve farmers' follow-up entrepreneurial performance?

(4) Does entrepreneurial learning play a mediator effect and moderator effect between entrepreneurial failure and farmers’ follow-up entrepreneurial performance?