Research Methodology – Assignment 1– Research Proposal BSc (Hons) in Business and Management Level 5 London School of Management Education ID NO: NC091811566DBM Word count: 2689 Why should an entrepreneur start a new business after one fails? Introduction Starting up of a new business is a huge task. Moreover, it becomes tougher when a previous … Continue reading “Assignment 1– Research Proposal | My Assignment Tutor”
Research Methodology – Assignment 1– Research Proposal BSc (Hons) in Business and Management Level 5 London School of Management Education ID NO: NC091811566DBM Word count: 2689 Why should an entrepreneur start a new business after one fails? Introduction Starting up of a new business is a huge task. Moreover, it becomes tougher when a previous business fails. After failure of a business, the concerned entrepreneurs or the business personal are like to undergo huge turmoil in terms of social, financial and physiological (Yamakawa et al.,2015). In addition, as stated by Artinger, S. and Powell (2016), entrepreneurial market entry can be segmented as a risky approach and entrepreneurs are prone to take poor entry decisions. However, the research shows that a decent percentage of participants in the study have shown their indication towards returning with new business idea even after failure. Additionally, as stated by Simmons (2014), stigma function within entrepreneurs stimulate the defiance of the failure and return with new and better entrepreneurial business idea. Therefore, it is an important aspect that the underlying concepts are very critical to assess to what extent starting up of a new business is important. This research aims to identify the reason why one should start another business even after facing failure. Research objectives SpecificMeasurableAchievableRelevantTimeTo assess the risk of starting up a new businessThis task would be achieved undergoing the researchwith the help of effective data collection, it is achievableAssessment of risk factors are important before starting a new business11 daysTo identify the necessity of starting a new business even after failureConduction of the data collection would be helpfulPrices selection of data would be helpful in achievingIt is relevant as there are huge failures and restart of business in the industry12 daysTo identify the turmoil the entrepreneurs face after their failureIt can be measured with the help of analysis secondary and primary dataDetailed analysis of data would allow achieving the cohesiveness of the objectiveidentification of the turmoil helps in better coping post failure era14 daysTo recommend solutions to fight those turmoil back and start up againbased on the identified solution, it can be measuresanalytical skill would be helpful in doing sothis would helpful for the budding entrepreneurs and those who want to start a new business after failure16 days Table 1: Research objectives Research Questions What are the risks associated with starting a new business?Why is it required to start a new business even after failure?What are the different adversities that entrepreneurs face during such failure?In what ways can these adversities be alleviated? Research rationale In terms of previous study, as discussed by Yamakawa and Cardon (2015), 50% of the failed entrepreneurs still possess the desire to comeback with new and innovative idea. Among them 9.6% of the failed entrepreneurs are prone to the starting of another business in next 2 years. The study highlighted that failure gives lesson to the entrepreneurs, which provides them better insight and ability of risk assessment. This is why they should come back and start up again. According to a recent report, in UK, around 660,000 number of new start-up are registered every year. This refers to a figure of 70 businesses in every hour (telegraph.co.uk, 2019). On the other hand, the lesser-known fact is that around 20% of them shut down within 12 months whereas around 60% last maximum 36 months (telegraph.co.uk, 2019). Among all these a merely 10% of entrepreneurs start up again after failure (Patel, 2015). Therefore, it is evident that the ratio of starting up again after failure is considerably low. Thus, the interesting fact in this particular topic is that, failure in entrepreneurship at early stage, is a big blow for anyone. Thereafter, returning with better business idea seems attractive as the assessment of various psychological factors is correlated in this context. This research will be discussing the reason why the entrepreneurs should start a new business again after failure and provide recommendations based on that. Literature review This chapter would focus upon discussing the various risk factors and mandatory factors for re-establishing entrepreneurships, an also on understanding the gaps in literature. Entrepreneurship always comes with risks as the entrepreneurs need to invest high financial resources along with taking appropriate decisions for the business to flow smoothly. However, there are various internal and external factors that results in failure in many cases. Risk of starting a new business According to Elertand (2016), the first on the list would be financial risks as the entrepreneur would need proper funds for launching a new business, which involves business loans from banks or investors, own savings or family funds. Secondly, the strategic risks are a major concern as the business plan needs to be highly appealing for convincing the investors. However, Hardy (2017) stated that the business world is becoming more dynamic, which makes the effective strategies to go outdated within very less time. Technology risks is another factor affecting the new businesses as new technologies are highly emerging and provides high scope for advancement in business operations. As a result, many new entrepreneurs invest in technology, which drastically affect the financial resources. Reason behind starting a new business even after failure As opined by Yamakawa and Cardon (2015), a decent percentage of the failed entrepreneurs return even after failure. The major reason behind such rebound approaches even after facing mental trauma and failure is that they learn from their failure. Learning provides experiences, which helps in opening the insight of the entrepreneurs. This enables them to think with clarity and the experiences help in better and methodological approach. This is the reason that they should start again. On the other hand, as mentioned by Simmons (2014), the failures help the entrepreneurs to stay imminent of the business failure. This has been a reason that influences the creative thinking and entrepreneurial personality to return the arena of entrepreneurship and start up from the beginning. Therefore, it can be mentioned that the entrepreneurs who come back to the business have two prime reasons: firstly, the experience and secondly the urge for the success. This is why they should return and start a business again. Another positive impact of such activity can be identified as such entrepreneurship also provides huge employment solution for the society and community. Adversities faced by the entrepreneurs after business failure According to Burns (2016), failure highly affects the psychology along with the resources and capabilities of the entrepreneurs. It makes them feel that the same goals are les attainable in nature due to the failure. Failure also distorts one perception regarding the business. However, Lyngsie (2017) stated that business failure makes the entrepreneur more experienced as they can now evaluate and recognise the risks and business strategies more practically, which would help them to re-establish the business more efficiently. It is observed that business entrepreneurs often lose confidence and self-sabotage themselves from re-establishment. They must not take business failure personally in order to gain confidence and start again from the beginning but with more caution and effective techniques. According to Shelton (2018), paying more attention towards the financial management than the other areas is highly recommendable for entrepreneurs interested in establishing new or failed businesses. Elimination of the adversities As stated by Duchek (2018), in order to comeback and start a new business it is always requires having resilience and courage and the mental integrity within oneself. These two helps in the emergence of the entrepreneurs even after failure with the help of analysing critically the situation. On the other hand, as argued by Morgan and Sisak (2016), fear of failure is another factor that possesses a huge threat in the process of elimination of failure and its negative impact. The aspiration within the entrepreneur is another important factor that has been identified and works as the opposing element of fear of failure. This will be helpful in overcoming such adversities and starting a new business. Literature gap The researcher has delved into the various risk factors and analysing the after effects of failure upon the entrepreneurs and suggests that financial management would be the most effective way to reduce the risk factors. However, there is a gap in literature as it cannot be confirmed that this is the only effective method for reducing the risks. Moreover, the previous literatures on this topic do not provide sufficient insight upon the risks related to re-establishing a failed business. Therefore, this research would focus upon this gap and discuss the risk factors related to the topic. The chapter provides great insight about the risks related to entrepreneurship, for instance, technological, financial and strategic risks. Therefore, the entrepreneurs need to assess and evaluate these risks and invest accordingly along with good strategic business plans when starting a new business or re-establishing a failed one. Research Methodology The term research methodology refers to specific techniques for conducting the research related activities like collecting, evaluating and assembling the information. This chapter would focus upon the methods selected by the researcher for this study. Moreover, this chapter would also highlight the research philosophy, approach and design for conducting this research study. Research philosophy The three prime research philosophies are: interpretive, realism and positivism. Interpretivism highly focuses upon the observations and interpretation of the observed data by the researchers. On the contrary, positivism is opposite and focuses on testing the hypothesis through using rational logic and arguments. Realism concentrates on explaining the social perceptions instead of logical concepts for answering the questions relate to the research work (Kumar, 2019). The researcher would select the positivism philosophy for the current research as it offers great scope for logical arguments and scientific reasonable explanations for the questions. Moreover, as the research has questions related to risks and reestablishment of entrepreneurship, this involves certain strategic methods, which requires logical analysis and reasonable scientific outlook. Hence, this philosophy is the most appropriate one for analysing the risk factors and the recommendation for new entrepreneurs based on scientific reasoning. Interpretivism and the philosophy of realism would fail in answering these conceptions and questions related to entrepreneurship failure as those philosophies does not provide logic or statistic-based solutions. Hence, positivism is preferred by the researcher for this study. Research approach There are two major types of research approaches that are used for conducting scientific and logic-based research works. Deductive approach is highly concerned with development of hypothesis determined by an existing theory followed by designing different research strategies for testing the hypothesis. Inductive approach begins with observing and proposing theories towards conclusion of the research. A deductive approach involves testing theory starting with a hypothesis, while inductive approach involves questions focusing upon the research study. Generally, Inductive approaches often emphasizes upon qualitative research, while deductive approach largely concentrates upon quantitative research (Wiek, 2016). The researcher of this study would select the deductive approach for conducting the research. This approach has been selected as the most appropriate method because the study is based upon answering certain research-based questions, where the researcher needs to assess existing literature for answering them. This approach would help the researcher to not only answer the questions but also develop theories from the secondary literatures, which cannot be achieved by using the inductive approach. Research design The three major types of research designs comprise of Explanatory, Exploratory and Descriptive research designs. Explanatory design concentrates upon connecting the effects and the causes related to the research questions, while exploratory designs as the name suggests, explores and focuses upon the background information related to the topics of the research. Descriptive designs always concentrate on synchronised and systematic information (Sagepub.com, 2016). The researcher of the current study will select descriptive method of research design, as his research is based on describing the incidents and occurrences in the business and entrepreneurship world focusing upon the risks factors. The other research designs would not be adequate to successfully explore all the details related to this topic compared to descriptive design. Hence, the researcher can utilise this method for explaining the research questions and explore the answers. The researcher has chosen to conduct both primary and secondary analysis through qualitative as well as quantitative research works for this particular study. Primary data The primary research refers to collecting information directly from the original resource for research purpose. This involves survey, interviews and focus group activities for collecting, analysing and understanding the information for research (Saunders et al. 2009). The survey method will be chosen for conducting the primary research work for this study. Secondary data The secondary data collection would be done from various existing information, which are produced by the large number of websites, journals, books and other reading materials (Basias, 2018). For this research project, the researcher would conduct thematic analysis with the help of existing journals. This method is chosen as the existing resources provide great insight upon the selected topic of entrepreneurship and business failure. Quantitative and qualitative research Quantitative research is mainly conducted to numbers, Mathematics and statistical data, represented in charts and graphs, mainly to test and confirm the theories. This involves experimental research, content analysis, surveys etc. On the contrary, qualitative research is mainly based upon analysing work of literature to understand and analyse and understand existing thoughts, experiences and concepts from the secondary resources (Daniel, 2017). This research method would help the researcher to improve insight upon the selected topic. Both Qualitative and Quantitative method would be selected by the researcher for conducting survey as primary and quantitative research along with journal analysis for secondary and qualitative research work. It can be summarised from this chapter that there are varied range of research tools and techniques. Out of which the researcher would be taking the philosophy of positivism, deductive approach along with descriptive research design for the current study. Moreover, the researcher would also select both secondary and primary data for conducting qualitative and quantitative research respectively. The researcher would conduct survey a thematic analysis for understanding the topic and answering the research questions. ActivitiesDate of startingDurationDate of finishingIdentification of the research topic15-04-20116-04-20Finalising the objectives and questions based on the topic16-04-20117-04-20Reviewing of different articles relevant of the research17-04-20219-04-20Selection of individual methods19-04-20221-04-20Development of the Gantt chart21-04-20122-04-20Outlining the process to undergo for research data22-04-20123-04-20Collection of the data from identified sources23-04-20326-04-20Conduction of the data analysis26-04-20329-04-20Recognition of research outcome29-04-20130-04-20Providing recommendations01-05-20102-05-20Proofreading and final paper work07-05-20209-05-20Submission09-05-20211-05-20 Table 2: Timeline Data collection and analysis In this section of the study, the techniques related to the data collection and its analysis will be discussed in this section. Sample size, declaration of the population and the way data will be collected would be discussed. As discussed in the above section, both primary and secondary data will be utilised in this research project to highlight why one should start a new business again after failure. For the collection of the data, the population will be identified as the people residing in London. As sample size, from the population is 50, which is related to the individual, who have been into entrepreneurial activities irrespective of failure of success. Among them, around 20 entrepreneurs will be surveyed for the collection of the primary data. The sample will be selected randomly. The participants will be sent online questionnaires using email ids and their responses will be retrieved using same email as well. In case of secondary data, the data will be collected by accessing online journals and articles based on the inclusion and exclusion criteria. Based on the criteria mentioned below, the articles will be sorted and will be screened before conduction of the collection and analysis process. Inclusion criteria Articles that have been published on or after 2014Articles that are written in readable English languageArticles that are related to the selected topic area Exclusion criteria Articles are not in English language will not be consideredLiteratures that have been published before 2014Articles, which are not focused on the identified topic Data analysis methods The discussion in the previous section has led to the assessment that in this research both qualitative, quantitative research will be considered as primary survey, and secondary thematic analysis will be conducted. Using the primary survey under the quantitative analysis of the data, the researcher would be able to evaluate the trend with the help of examining the data collected from the participants. The two-independent variable in this research are the factors that affects the entrepreneurial mind-set after failure and the will power to start up all over again. In case of the qualitative analysis of the collected secondary the use of deductive method would be supported. The previous section has shown the rationale behind the selection of deductive research approach, which helps in qualitative analysis greatly. The major noteworthy features of deductive approach is that it is time saving and is highly supportive for undergoing research at student level. This section of the study has thoroughly analysed and explained in what different ways the relevant data for this research will be collected. The discussion has also identified the selected population for the research and the exact number of sample size. Further assessment has identified that parameter based on which the secondary data will be collected discussing the techniques for the data analysis as well. Conclusion This section of the study will sum up the entire assessment, which has been conducted above. Furthermore, this section will discuss how the selected methods will be useful for the success of this research based on the research objectives and questions mentioned above. This research has taken to the consideration of primary and secondary both data collection method. It has been considered the main reason that such kind of researches often come with restricted timeline. Therefore, the selected data collection methods would provide better efficiency and save the financial budget as well. Due to the selected of these methods, qualitative and quantitative methods have been selected for the analysis of the data. Survey will be analysed using quantitative method and secondary using quantitative method. Additionally, as a part of research methodology, the positivism philosophy will be utilised in this research as it offers time efficiency and helps in undergoing research work with limited financial support. In addition to that, the selected deductive approach for this research would offer better control and structural progression as deductive approach offer scientific layout and process. The most importantly, in this research, descriptive design will be used due to its fluid nature, which is highly useful for the students to undergo research work. From above discussion, it has been clear that the selected research methods are directed to minimise the flaws such as time, finance and the experience of the researcher. This would be highly effective in case of the processing of the data. The data process will be done through internet and email, which will further add up to the process. Hence, collaboration of these will ensure the success of the research achieving the objectives set earlier. References Artinger, S. and Powell, T.C., 2016. Entrepreneurial failure: Statistical and psychological explanations. Strategic Management Journal, 37(6), pp.1047-1064. Basias, N. and Pollalis, Y., 2018. Quantitative and qualitative research in business & technology: Justifying a suitable research methodology. Review of Integrative Business and Economics Research, 7, pp.91-105. bl.uk 2020. 4 Types of Research Methods For Start-Ups [Online] Available at: https://www.bl.uk/business-and-ip-centre/articles/4-basic-research-methods-for-business-start-ups [Accessed: 5 May 2020]. Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited. Daniel, B.K. and Harland, T., 2017. Higher education research methodology: A step-by-step guide to the research process. Routledge. Duchek, S., 2018. Entrepreneurial resilience: a biographical analysis of successful entrepreneurs. 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