Understanding startup failure : the impact of founders' personality and experiences on the decision to cease operations

Abstract

This study explores the critical role of personality traits and past experiences in shaping entrepreneurial success, focusing on the journeys of founders Hung, Linh, and Nguyen. Key findings highlight the importance of resilience, adaptability, and strategic thinking in navigating the complexities of entrepreneurship. Hung's ability to manage significant financial reversals, Linh's creative problem-solving skills, and Nguyen's logical approach to business challenges are pivotal traits that have driven their respective ventures. The research underscores how past experiences, such as financial losses and equity conflicts, influence decision-making processes and conflict-resolution strategies. Additionally, the study emphasizes building and maintaining trust within founder teams, with clear communication and equitable arrangements essential to prevent disputes. Family dynamics also play a significant role, influencing motivations and responsibilities; for instance, Hung's drive to support his family and transition to a breadwinner role. The findings advocate for continuous self-assessment and skill development for entrepreneurs while suggesting that investors utilize qualitative assessment methods like Interpretative Phenomenological Analysis (IPA) and Critical Incident Technique (CIT) to gain deeper insights into founder dynamics. Future research should employ longitudinal studies, broader samples, and mixed-method approaches to explore these factors further, fostering a supportive entrepreneurial ecosystem that nurtures diverse traits and experiences, ultimately contributing to more resilient and innovative business practices.