Failure? What failure?

An article in today’s FT by David Storey, the Associate Dean of the Warwick Business School in the UK, looked at failure among entrepreneurs and likens success to a winning lottery ticket. The more tickets you buy, the more likely your success. According to Storey, the empirical evidence that entrepreneurs learn from their failures is slim. Serial entrepreneurs benefit mostly from a sense of optimism, not by learning from their mistakes. Governments do not need to make it easier to fail (by adjusting bankruptcy laws for example) in order to foster greater entrepreneurial success. Rather, they should focus on making it easier to buy a lottery ticket, i.e. lower the barriers to business formation. The importance of optimism is also a reason that young entrepreneurs are liked by venture capitalists. Still, it seems clear that experience is undervalued at the moment, meaning that the Cowboy will put a BUY recommendation on optimistic, but seasoned managers.

Published in: on May 14, 2008 at 16:32  Comments Off on Failure? What failure?  
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