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The impact of business failure on SME entrepreneurs in Australia

  • Eunice Oteng Owusu

    Student thesis: Professional Doctorate

    Abstract

    Academic research on entrepreneurship has increased rapidly in the last two decades and has contributed strongly to the development of theories in this field. Most of this research, however, focuses primarily on the success of entrepreneurs, characteristics of entrepreneurs, and capital for entrepreneurship. This focus is surprising given the practical reality of high failure rates of Small and Medium-sized Enterprises (SMEs), especially start-up businesses. This research investigates the impact of business failure on SME entrepreneurs in Australia. The literature review, in-depth interviews with individual entrepreneurs, and focus group discussions conducted for this study revealed that business failure generally results in four qualitative costs: financial, emotional, psychological, and social. The research also identified that business failure helps improve entrepreneurs’ knowledge and skills , eventually leading the entrepreneurs back on the path of wealth creation. In addition to the findings above, this research included interviews with some agencies supporting SMEs. These interviews highlighted the need for more engagement programs to assist SME entrepreneurs in navigating the challenges of running a successful business. Several recommendations for future research are provided in this thesis.
    Date of Award2025
    Original languageEnglish
    SupervisorRaechel JOHNS (Supervisor) & Jennifer M.I. Loh (Supervisor)

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