Reference no: EM133084865
Aspiring entrepreneurs are told not to fear failure. In fact, they are often told to embrace failure, that it is an important part of the entrepreneurial process. You must fail before you can succeed! But is it true? Do you really have to experience failure before you can find success? And what is it about failing that helps you succeed in the future?
Many successful entrepreneurs throughout history experienced failure first.72 Before starting Microsoft, Bill Gates and friend Paul Allen launched Traf-O-Data, a company that used a computerized microprocessor to analyze data from traffic counters that were placed on roads. The intent was to support government traffic engineers' efforts to optimize traffic and end road congestion. But the equipment did not work correctly during their big presentation to local county officials, and the company eventually folded. Good thing, as the pair did go on to create the software used so widely around the world.
Worth $20.4 billion, Jack Ma is the wealthiest person in China. He is the founder of Alibaba, the world's largest e-commerce company, which has over 100 million shoppers a day. However, at one point he couldn't even get a job. After failing the college entrance exams three times, his decision to just get a job instead didn't work out either. He was turned down by 30 companies, including a new franchise of KFC that was opening near his home. KFC had 24 applicants for 23 jobs, and Ma was the one who didn't make the cut. Eventually he launched Alibaba, creating not only a job for himself, but also jobs for more than 30,000 other people who now work there.
At some point you've probably read an article from the successful online journal The Huffington Post. Founder Arianna Huffington experienced some significant failures prior to launching the journal. After she wrote a successful first book, her second book proposal was rejected 26 times. She also unsuccessfully ran for governor of California in 2003, before eventually starting The Huffington Post in 2005. Since then she has been recognized consistently in Forbes' Most Influential Women in Media and in 2015 ranked 61st on Forbes' 100 Most Powerful Women list.
You are familiar with Blogger and Twitter, but you probably haven't heard of Evan Williams' other ventures, Pyra Labs and Odeo. Blogger was a side project that Williams started while trying to build his first company Pyra Labs. Financial challenges led to the closing of Pyra Labs, but Williams was able to keep Blogger going. Odeo was going to be a podcasting company, but the platform wasn't as good as Williams' team hoped, and Apple's timing of opening the podcast section of the iTunes store led to the company's closing. Fortunately Williams and his cofounders had Twitter in the works at the time.
There are, of course, many failures that we don't hear about because that's where the story ends. So why do some entrepreneurs succeed after failure, while others just fail? Some say it depends on the entrepreneur's mindset. Is the entrepreneur's mindset fixed, or growth oriented? A fixed mindset assumes failure means lack of ability. As a result, failure leads to being more risk averse and eventually giving up. In contrast, entrepreneurs with a growth mindset learn from failure. They don't attribute failure to a fixed trait; rather, they are more likely to analyze a failure more deeply and more effectively apply learning to the next problem or challenge. The fact is, most entrepreneurs aren't going to be successful with their first idea or venture. Those who are successful ultimately are those who stand back up, dust themselves off, learn something from the failure, and try again.
Discussion Questions
- Why do so many entrepreneurs experience failure?
- Do you think someone could be an immediate success when starting a business? Or is a first failure really necessary?
- Is a growth mindset something you are born with? Or, can you develop a growth mindset?