New firms are an important trigger for the generation and diffusion of new products and processes. If successful, new firms contribute significantly to the creation of jobs and to economic growth. However, new firms are subject to a greater risk of failure as compared to established firms. While there is considerable evidence on entry and growth of surviving firms, the risk and especially the virtue of firm failure and firm exit has attracted less research effort. The aim of the workshop is to address this issue. A special focus of the workshop is on the impact of firm failure on the subsequent start of a new firm, i.e. on serial entrepreneurship. It will also take a look at the phenomenon of starting up and managing more than one new firm, i.e. on portfolio entrepreneurship.