Building Theory: The Relationship Between Attribution Theory and the Perceived Outcomes of Entrepreneurial Venture Failure (Manuscripts‪)‬

ABSTRACT When businesses close, attention may (but not necessarily) be given to the economic impact of the closure on the community and consumers (most businesses, like good generals, probably simply fade away without notice). But in all cases, there is an impact on the entrepreneur. What of the individual and the risks that were taken, how has the entrepreneur fared, and what are the social, psychological impacts as that individual moves forward? The purpose of this paper was to provide insight into the manner in which an entrepreneur comes to decide what to do after a venture fails and how the venture experience has affected personal aspects of the entrepreneur's life. It was proposed that a well-understood and influential social psychology theory of how outcomes are influenced by attributions made by an individual can be used to better understand the nature and scope of the impact of failure on an entrepreneur's life. In much the same way an individual's attributional explanatory style influences consequent attributions and decisions, an entrepreneur's explanatory style should have a role in the perceived outcomes of a failed entrepreneurial venture, which in turn affects consequent decisions.