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Introdcution Following several studies and findings, the

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Introdcution

Entrepreneurs are leaders of the independent organisations who are willing to
take the risk and accept the challenges faced by their organisations (Gartner,
1988). Even though the definition of resilience sometimes varies, it is widely
believed as one of the keys of entrepreneurial success (Martin ,2012; Martin
and Sunley, 2015). Resilience can be defined as an ability to maintain
stability, and control one’s emotional or psychological state of being
regardless of challenges and critical times (Bonanno, 2004, 2005; Eicher et
al., 2015; Leipold and Greve, 2009). Previous studies have found that many
entrepreneurs experience personal difficulties, drive for achievement and
loneliness, which then lead to entrepreneurial stress (Boyd & Gumpert,
1983; Kuratko, 2013). Therefore, entrepreneurs will face many personal and
organisational challenges for which they will need to be resilient to overcome
these adversities to stay productive and maintain their high work ethic. The idea
of resilience is becoming more popular and interesting field of study as it is
important part of entrepreneurship and psychology (Bullough et al., 2014). However,
there is no fixed and agreed definition of resilience, nor the widely used
method to examine or analyse the concept (Luther et al., 2000; Moenkemeyer et
al., 2012). Following several studies and findings, the psychologists believed
that resilience the individuals are able to develop resilience over time and
learn how to address several difficulties and adversities (Masten at al., 2002;
Youssef and Luthans, 2005).

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Entrepreneurial setbacks often are very costly and painful both emotionally and
financially, regardless if it is major or minor failure (Coelho & McClure,
2005). However, if the entrepreneurs are emotionally strong, then they can use
adversities as an opportunity to learn and improve (Cope, 2005; Cope, 2011;
McGrath, 1999; Politis, 2005, Singh, Corner & Pavlovich, 2007).
Organisational setbacks can enable the entrepreneurs to expand their skill-set
and knowledge which will then lead them to success (Huovinen & Tihula,
2008).
According to Bandura the studies showed that the entrepreneurs have high level
of self-efficacy (Bandura, 1986; 1997; 2001). Self-efficacy can be defined as one’s
confidence and drive to accept and face new challenges, and unwillingness to
give up during adversity (Bandura et al., 2001; Bandura et al., 2003). Therefore,
self-efficacy can be directly linked to resilience as one of the important
qualities resilient entrepreneur. Entrepreneurs face many challenges during
different stages of their business, and the resilient entrepreneurs are the
ones who are able to adapt quickly and improve through pivoting and innovation
(Reinmoeller & Baarwijk, 2005). Moreover, resilient entrepreneurs have
capacity to accept different circumstances and use their experience to face
challenges and avoid negative emotions through using their positive view on
challenging times (Tugade
& Fredrickson,

2004).

The aim of the research

The aim of this research is to examine the importance and understanding of
resilience in entrepreneurial success for successful entrepreneurs. The research
will analyse how the entrepreneurs face their challenges and how they overcome
these obstacles. Moreover, how do they use the setbacks to their advantage to
improve their strategy and entrepreneurial skill-set in order to succeed in
business. The aims of this study are:

·     
Exploring and Reviewing existing researches
regarding the psychological and entrepreneurial resilience.

·     
Analyse the connection between resilience and
successful entrepreneurship.

·     
Interview the entrepreneurs and understand
resilience in their experience.

·     
Analyse the importance of resilience

Structure of the
Report

        The report will be structured in
five chapters. First chapter will provide a background information about the
research topic and explanation of the aim of the research. Second part will
move on to literature review which will discuss entrepreneurial resilience and
the previous studies conducted around the topic. Third chapter will discuss and
provide in depth information regarding the methodology of this study and how
the data will be collected from the entrepreneurs. The Fourth chapter will analyse
the findings and if the anticipated outcome of the research was closely related
to the final results of the research. Finally, in the fifth chapter the overall
conclusion and recommendations of the study will be provided.

Literature Review

Researchers
of entrepreneurial resilience use previously conducted studies on resilience
from psychology and link it in entrepreneurship (Bullough and Renko, 2013;
Manzano and Ayala, 2013; Vries and Shields, 2006). The concept of
entrepreneurial resilience is becoming more recognised and valued as the time
passes, however, the current knowledge on the idea is still limited and some
aspects are still not agreed yet (Leipold and Greve, 2009; Luthans et al.,
2006). The business environment in modern economy is immensely competitive,
therefore, it takes strong characteristics for entrepreneurs in order to
succeed. Moreover, mind-set towards the entrepreneurial failure is essential, as
one must pursue their ambition despite the adversities to overcome them and
become successful (De Vries, 1977). The ability to learn from failure is crucial
in life and even more so in entrepreneurship, moreover, there are several cases
which show the resilience during failures have led to success in
entrepreneurial ventures (De Vries, 1977; Gratzer, 2001). Furthermore, the
uncertain understanding of Entrepreneurial resilience is caused due to the fact
that it is understood in different ways in many countries, i.e. cultures and
social norms are affecting the entrepreneurs’ views regarding resilience and
failure. Additionally, the statistics show that failure in the United states is
acknowledged as the opportunity to learn, and use it for future decisions and failure
does not cause feeling of shame in people (European Commission, 2003; Vaillant
& Lafuente, 2007). However, entrepreneurial failure in Europe and Japan is
recognised as social humiliation and people are much less accepting towards
failure, which means that there are less resilient entrepreneurs there (European
Commission, 2003; Vaillantt & Lafuente, 2007). Thus, the importance of
resilience in entrepreneurship is unquestionably crucial, however, the
resilient drive towards the goal can also be depended on country in which the
entrepreneur is starting the venture as more lenient countries towards failure
will encourage entrepreneurs to try to overcome the failure. Furthermore, there
are several variables in entrepreneurship and there is a need to come up with a
theory which will connect and analyse the relationship of these variables
(Wortman, 1987). Hayward et al. (2010) suggest that there is direct correlation
between venture success and the resilience of entrepreneurs. However, according
to Kuratko and Hodgetts (2001) the researches on entrepreneurship is increasing
and progressing, also the field develops further, but there is still no
complete framework or theory of entrepreneurship and entrepreneurial
resilience.

There are two widely researched aspects of entrepreneurial resilience, for example,
entrepreneurial cognition, which examines the way the entrepreneurs think
(Mitchell et al., 2002). Cognitive aspect of entrepreneurial resilience is
believed to be decision making, self-efficacy, and reason why entrepreneurs are
willing to take risk and accept the challenges (Sanchez, Carballo &
Gutierrez, 2011). Resilience attribution theory is also important aspect of entrepreneurship.
Furthermore, attribution theory analyses how the individuals understand and
take the causes and effects of certain actions (Heider, 1958; 1986). McClelland
(1961) suggests that most entrepreneurs strongly believe that they are the
reason why the venture succeeds or fails, and they are accountable to their
actions, which helps their resilient drive to overcome the obstacles. Therefore,
the attitude towards the outcomes of the own decisions is important to react
accordingly in case everything does not progress as planned. Cognitive aspect
of entrepreneurship is believed to be using own intellect to assess the
situation and make judgements or decisions accordingly (Mitchell et al., 2002).
He cognitive abilities of the entrepreneur is crucial and in direct correlation
with the venture’s success as many aspects of business will be depended on the
entrepreneurs’ judgements and assumptions which will then result in success or
failure. The resilient entrepreneurs are the ones who make difference and who
decides whether the venture succeeds or not, as they make the calls and quick
adaptation in high impact challenges and critical thinking will make needed
changes to overcome the adversities (Van Praag, 2003). Therefore, many
researchers suggest the direct correlation of resilience and success in
entrepreneurial environment. Frederickson et al. (2003) suggested positive
attitude towards challenges enable resilient entrepreneurs to be much more
likely to succeed than less resilient entrepreneurs.

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