After examining the records of 2.8 million small retailers in Texas, Professor Kathryn Shaw concluded that while “failure is very, very common” for even serial entrepreneurs, successive new ventures were likely to experience more and more longevity. “Failures,” then, can be reframed as lessons to benefit entrepreneurs’ new operations — the more experienced the entrepreneur, the more successful the business.
“If you are an entrepreneur, you want to continue to gain experience as an entrepreneur,” Shaw said. “It’s really a long-term commitment. Learning from that experience can shape your future.”
The examined records spanned a 22-year period during which 2.5 million retail business opened up and 2.2 million shut down. Out of all of them, small retailers fared the worst — they stayed open for only an average of 40 months. But, those entrepreneurs who stuck around found their efforts eventually rewarded — while only a quarter of first-time business owners opened a second business, those who went on to open second, third and fourth businesses increased their success rate relative to their previous each time, no matter whether their new operations were directly related to their last.
Overall, the findings show that entrepreneurship is “more of a craft than an aptitude.” So, forget worrying about whether you have “it” in you, and go out and learn “it,” fearlessly, because you will succeed if you keep trying.
Support our Journalism with a Contribution
Many people might not know this, but despite our large and loyal following which we are immensely grateful for, NextShark is still a small bootstrapped startup that runs on no outside funding or loans.
Everything you see today is built on the backs of warriors who have sacrificed opportunities to help give Asians all over the world a bigger voice.
However, we still face many trials and tribulations in our industry, from figuring out the most sustainable business model for independent media companies to facing the current COVID-19 pandemic decimating advertising revenues across the board.
We hope you consider making a contribution so we can continue to provide you with quality content that informs, educates and inspires the Asian community.
Even a $1 contribution goes a long way. Thank you for everyone’s support. We love you all and can’t appreciate you guys enough.