Failed Entrepreneurial Activity

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When talking about the fail entrepreneurial activity, general public have controversial definitions of failure as some may think of liquidation of company and some suppose the fail investment of a particular area only. Despite polemical definition of failure, at least it states that the company stagnate in the fast changing world. According to the Burns (2010), the success is a survival for the long term in the turbulent business world. It hints that the failure represents the collapse of the business growth, which causes the risk and the worst situation is the personal bankrupt. In the following paragraphs, the dark and bright of fail outcomes would be introduced and discuss whether the failure is a desirable outcome of entrepreneurial…show more content…
Failure would be a coordinate effect to help entrepreneur repent their own error and negative personality. After making the destructive error, people will be more prudent and considerate to make the determination. Previously experienced failure and re-entered are likely to experience lower psychological costs if they subsequently fail (Ucbasaran et al, 2012, cited in Jenkins, Wiklund &Brundin 2013).Even though recovering from the destructive torment is not easy, the entrepreneur can feel a greater sense of satisfactory and success, making them treasures the things they own. The more powerful and unbreakable faith is a favourable outcome of failure.
More important is that, Failure can help specify and simplify the company, which can be sustainable in the long term. When failure appears, some companies will sell parts of assets to the closely related companies and remain the core business area. Having that decision can reposition the target market by focusing on a few products and simplify structure of business to increase economies of scale. For example, Eastman Kodak is a famous international photography company but faced the company bankrupt recently. In spite of facing the failure, some patients of Kodak are taken over by Kodak Pension Plan to prevent the competitors’’ buyout. At the same time, the Kodak focus the business on the manufacture of photographic machine and the Kodak Pension Plan establishes new company the
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