New study shows that failing at business actually helps your chances of future success.
Failure: The Secret to Success
As business owners, we’re all very aware that the odds are against long-term success. But having a business fail doesn’t condemn you to a life of unrealized dreams. New research shows that previous failures in entrepreneurship improve the odds of success for future ventures.
Yonkwook Paik, a fellow at the Kauffman Foundation, recently completed a study for his PhD at Stanford University that analyzes the impact of early business failure on future success. Paik analyzes the long-term success of first-time founders—novices, as he calls them—and serial entrepreneurs, those who have started previous companies that may or may not have failed.
The results show that the experience of starting a company and trying to build it, even if that process ends in failures, provides skills, experience and relationships that significantly improve the odds of success the next time around. So if things aren’t going well now, rest assured that you’ll have a better chance of success with your next company.
About Mike Periu
Mike is a seasoned executive with experience in small business finance and management. He is the founder of Proximo, LLC a leading provider of corporate, consumer and small business education and training services with an emphasis on finance and technology.
Mike Periu is also a leading national voice for individual empowerment through financial education and entrepreneurship. He has been interviewed over 500 times in national and international media, including NBC, Univision, CNN en español, Telemundo, HITN, TVE, RTE, SBS, MegaTV and others.
Mike writes regularly for American Express OpenForum, Yahoo! Finanzas and is a Huffington Post contributor.
Mike has degrees in Finance and International Business from Georgetown University. He is on the Board of Directors of the Council for Economic Education and was a Fellow at the Kauffman Foundation’s Labs for Enterprise Creation.