Int. Journal of Business Science and Applied Management / Business-and-Management.org
54
1. INTRODUCTION
Entrepreneurship refers to the identification of opportunities in order to create new business ventures,
provide goods and services (Shane and Venkataraman, 2000), generate employment, and promote innovation. It
acts as a major force in the economic growth of a country (Van Praag and Versloot, 2007). Entrepreneurial
development not only leads to employment generation but also leads to social development and improvement in
the global competitiveness of a country (Naudé, 2013). Entrepreneurial success may be defined as the ability of
the firm to be able to survive in the market over the long term (Fisher et al., 2014). Such success can be viewed
from two angles: financial success and non-financial success (Orser and Dyke, 2009; Gorgievski et al., 2010).
Financial success can be measured with the help of organizational economic parameters such as firm survival
rate, cash flows, company sales and profits, the number of employees, and the company growth rate (Dej, 2010).
Non-financial success, on the other hand, is based on the personal attributes of the entrepreneurs, such as
personal fulfillment, societal contributions, self-realizations, and work-related social relationships (Dej, 2010).
Financial success is often argued to represent the short-term outlook, whereas non-financial or psychological
success is attributed to the long-term perspective (Simon et al., 2015). Literature suggests that the success of a
startup may hold different meanings for different entrepreneurs. While for some, it may boil down to the
achievement of the enterprise’s goals and objectives (Hyder and Lussier, 2016) or a continuous high financial
performance (Spiegel et al., 2015), for others, a startup may be successful on being acquired by another
company at a good valuation (Krejci et al., 2015).
The process of entrepreneurship involves three phases: opportunity identification phase, development and
execution phase, and survival and growth phase (Baron and Shane, 2007). The success of an entrepreneurial
venture is mostly evaluated during the second phase. Various indicators are taken into consideration while
evaluating a venture’s success. One of the most paramount indicators is financial gain (Parker, 2009), while
other indicators include sales, revenue, and market development (Rauch and Frese, 2007). It is difficult to define
entrepreneurial success based on financial gains solely because many start-ups may not be able to become
profitable initially, even when the firm enjoys increasing sales, due to high set-up costs and interest payments
(Perez and Canino, 2009). Still, it is an integral indicator as low financial gains or profitability can prove to be
dangerous for a business venture and might lead to its death (Coad, 2007). Contrary to the above, a firm may
dissolve even if it is profitable but is unable to fulfill personal goals (Green et al., 2003).
Various factors drive entrepreneurial success, which can be classified into external and internal drivers.
The external factors include economic factors and social factors, while the internal factors comprise
psychological factors and personal factors. Economic factors comprise access to financial resources (Gupta and
Mirchandani, 2018), an increase in sales and revenues, continuous development, customer acceptance and
satisfaction, and the overall economic growth of the firm (Wach et al., 2016). The social factors include 2 major
components: workplace relationships, that is, the ability to maintain healthy relationships with the stakeholder
within and outside the organization (Jayawarna et al., 2013), and societal impact, which refers to the impact of
the firm’s products and services on the environment as well as on the health and well-being of the society
(Florea et al., 2013). Psychological factors comprise components such as resilience, self-efficacy, and the
optimism of the entrepreneurs that influences their behaviors, intentions, and motivations, (Baluku et al., 2016).
Resilience is the ability of the entrepreneur to bounce back from unprecedented, adverse circumstances by
adapting to a dynamic environment and bringing positive change (Luthans et al., 2007), while self-efficacy is
the confidence of an entrepreneur to develop and build a new venture, accomplish the goals, overcome all the
challenges, and be proficient in the entrepreneurial journey (McGee et al., 2009; Newman et al., 2014).
Optimism is a psychological factor that motivates an entrepreneur by increasing the possibility of positive
outcomes (Luthans et al., 2007; Trevelyan, 2008). Lastly, the set of personal factors comprises the education
level of the entrepreneurs (Barreneche, 2014; Kolstud and Wiig, 2015), their innovativeness and creativity
(Mazzucato, 2011), and their personal initiative as well as active actions towards ensuring the survival and
growth of the venture (Frese and Gielnik, 2014).
While in the past, emphasis has been on economic as well as psychological parameters for determining the
growth and development of businesses, recent literature has focused attention on the emotional skills of the
entrepreneurs (Aly et al., 2021), which are internal in nature, as well as family-related factors (Staniewski and
Awruk, 2021), which is an external factor. Dimensions such as parental attitudes, the manner of communication
amongst the family, and the origin of the family have now been recognized as playing a crucial role in the
entrepreneurial success (Staniewski and Awruk, 2021).
Despite the growing number of studies on entrepreneurial start-ups, the literature suffers from major gaps
in quantitatively identifying the intellectual developments and evolution taking place in the domain of
entrepreneurial success. The topic of entrepreneurial success is emerging but is under-researched (Fisher et al.,
2014). Though there are fragmented studies that focus on various aspects of entrepreneurial success, such as
achievement motivation (Staniewski and Awruk, 2019), age (Zhao et al., 2021), the relevance of resilience
(Salisu et al., 2021), the literature still lacks a quantitative review to examine the growth in this domain.