Understanding the influence of entrepreneurial failure on the relationship between the serial entrepreneur and the church as a community of interest

Abstract

The extant literature on entrepreneurial failure indicates that such failure is far more widespread than reported and affects the relationship with the community of interest. It is therefore crucial to understand how entrepreneurial failure influences the relationship to assist the entrepreneur in recovering and assess the role the community of interest plays in the process. However, the literature on entrepreneurial failure is unclear about how the relationship will be affected. Therefore, this research was designed to expand the theory on entrepreneurial failure by understanding how the relationship is influenced. The study used the entrepreneurial failure literature to formulate the research question, “How does entrepreneurial failure influence the relationship between the serial entrepreneur and the church as a community of interest?” Prior research had identified the Christian church as a community of interest. Through the affiliation of its members, the Christian church represents a significant part of the South African economic community; thus, its effect on the economic community is substantial. For this research, nine churches were selected as cases. In total, 35 interviews were conducted with church representatives and entrepreneurs, yielding seven identified themes. The study determined that the relationship between the failed entrepreneurs and the church was influenced, but the level of influence depended on several factors. The most significant factor was that the relationship between the church and the entrepreneur before the business failure directly affected the entrepreneurs’ actions, and how they managed the relationship and the cost of failure. However, the church was seen only as providing the platform for this relationship through its structures and services. The study contributes to the literature on entrepreneurial failure by confirming that entrepreneurial failure influences the relationship with the church, but it also adds to the literature by indicating that the entrepreneur and the community of interest influence the relationship in different ways. Understanding how the relationship is influenced can guide other communities of interest in how they respond to failed entrepreneurs, and how the entrepreneurs’ relationship before the business failure determines how the relationship with the church is influenced after the failure. This study was conducted within a specific context, in South Africa, and amongst one specific religious community. Future research in different contexts and settings is needed to test the outcome of this study.