ABSTRACT
This paper aims to investigate and discuss psycho-economic phenomena contributing to entrepreneurial failures. Several research studies have indicated that deterministic, emotive, and voluntaristic factors are the most prominent aspects influencing entrepreneurial failure. However, this paper proposes that causes of failure are not limited to these categories only; the opportunistic behavior of individuals can also contribute to entrepreneurial failure. The study is a quantitative study; it carries out causal analysis relating existing arguments regarding psycho-economic phenomenon to entrepreneurial failure. The study further adds to and analyzes the construct of opportunistic behavior as another possible factor in entrepreneurial failure. The sample for the study is 1541 nascent entrepreneurs in West Sumatra Province, Indonesia, who have experienced failures in their business. Analysis was undertaken by using multiple and partial regression analysis in which the statistical protocol was carried out. The study found that psycho-economic factors, together with individuals’ opportunistic behavior to a greater or lesser degree, cause entrepreneurial failure. The study also argues that opportunistic behavior may not only be viewed as a source of entrepreneurial success but should also be considered as a cause of entrepreneurial failure. This finding clearly demonstrates the originality and value of this study.
