Does psychological capital help to learn and bounce back from entrepreneurial failure?

De Hoe, Roxane [UCL] Janssen, Frank [UCL]

Although entrepreneurial failure is perceived negatively by society, many researchers believe in its opportunity to learn from it. However, it is sometimes difficult to learn from a failure given the financial, psychological and social costs associated. Through our conceptual model, we take a more positive approach of entrepreneurial failure. We suggest that a high level of psychological capital plays a moderating role in the relationship between the negative consequences of failure and the positive side of learning from failure. This learning and high psychological capital would help failed entrepreneurs to pursue their entrepreneurial career.