Have you ever failed as an entrepreneur? You should embrace failure because it is probably one of the most valuable experiences that you will ever have the (mis)fortune to engage in.
Failure is a difficult and complex deviation from the expected and desired result – when an entrepreneur underperforms and desired targets are unmet. A business failure is connected to the way the manager conducts his enterprise – his behaviour and decision-making skills. Research shows that about 50% of newly established businesses in European economies failed in the first 5 years. Though this seem to be bad news; however, studies have also shown that the experience of failure may be crucial for entrepreneurship.
Entrepreneurship failure can be due to:
– Poor management – inability to promptly identify problems and apply correct solutions.
– The tendency of taking excessive risks and overconfidence.
– Poor financial planning – cash flow binds, being too easy with credits and spending money on the wrong things.
Entrepreneurs’ life and work experiences also shape their attitudes towards failure.
Here are some reasons why you should embrace failure as an entrepreneur.
FAILURE IS A LEARNING EXPERIENCE
Don’t be too quick to judge an attempt as a failure. Though painful, failure can be a source for the improvement of entrepreneurial knowledge and skills after the failure. Entrepreneurial failure reduces uncertainty and can increase the effectiveness of opportunity recognition. Entrepreneurs who see failure as a learning experience are better able to improve their knowledge, capabilities and experience in seeing opportunities. Learning will take place when you see failure as a moment not a monument.
FAILURE IS YOUR FRIEND
Don’t mistake failure for a foe; it is your friend. Your flop is not your enemy – desist from taking it too serious; otherwise, you get too anxious about every action. Treat failure as a friend who is there to help you. By reacting positively to failure, you can laugh and learn from the experience.
FAILURE IS NOT AN END
Use failure as a springboard to reach higher goals. Failure is not an end, it is not final. Every time you take a chance at doing something the probability of failure increases. As long as you are living and willing to try new things, you will win some, but will still goof somewhere down the road. Research has shown that failure can improve “entrepreneurial preparedness” for subsequent entrepreneurial activity. Failure acts as a stepping stone for spotting and exploiting new opportunities.
No matter how small, concentrate on your success instead of failure. People who dwell on their failure would probably end up failing again because of the constant thought about the fault, problem or fall. Do you have a good idea, go after it, get out into the world and win.
Categories: Entrepreneurship and Small Business