Edit

A failed entrepreneurial attempt can be a great jumping off point for an MBA. You seem to have done enough to write about, and I have seen many successful candidates come from failed startups. So it can actually work to your advantage. Whether your profile is strong enough for Kellogg and Cornell or not will depend on everything else as well: What you did previously, why you got laid off, what school you attended, your GPA, GMAT extra-currics, etc. etc.

So you could get in to such a school, but still you should be simultaneously looking for a job, because you there aren't that may one year programs in the US, and should you not get accepted to the schools of your choice, you don't want to get stuck. Plus if you apply with being able to write that you are currently employed after your startup failure it will boost your profile.

Hope this helps you out, and if you have any other follow-up questions, just drop a line.