Differing perceptions of new venture failure Essay

Differing perceptions of untested venture failure - Essay Example dividing line that the innovation of the venture capitalist brings in new dimensions in the survival of new ventures since within the first 7 years of establishment only 18 portion of the new ventures fail as compared to 75 percent of non VC funded new ventures.The authors note that research on the factors that cause failures of new ventures is limited callable to factors such as difficulty in conducting monetary analysis on failed ventures and the reluctance of entrepreneurs to wrangle their venture failures. The authors also discuss the factors leading to new venture failures in the perspective of the venture capitalists and the entrepreneurs. Venture capitalists cite factors such as poor management and unfavourable market conditions while the entrepreneurs cite factors such as product factors, financial limitations and managerial problems. All these are discussed in relation to the attribution theory.The argum ent that the ventures examined represented all the new ventures and that the factors leading to failure as ranked in order of importance by the authors is misleading due to the fact that new ventures and entrepreneurs from other locations whitethorn be faced with other factors of failure. It is therefore important to note that applying the results of the study should be done with that fact in mind. The factors may depend on the location and may also be time determined as well as depend on the soulfulness characteristics. An alternative conclusion could therefore be that the success of the new venture will depend on the internal characteristics of the venture.Zacharkis, Andrew Meyer, Dale G. and DeCastro, J. Differing perceptions of new venture failure A matched exploratory study of venture capitalists and entrepreneurs. Journal of littler Business Management 7.1 (1999)