Failed Entrepreneurial Activity Essay

2043 words - 8 pages

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 activity or not.
The first reason why the failure is not a great outcome is that the sole trader will suffered from the physical loss. If the entrepreneur continuously undergoes the loss in sales, the company may have a risk to go bankrupt (Burns 2010). The assets including the money, facilities, stock and other resources will be taken over by the bank to recover the debts. What’s more, it may also have the management buyout by the other army or company, the value of assets will be underestimated so the entrepreneur still loses under the detrimental context.
More important is that failure can cause the potential loss. Fail entrepreneurial activity negatively affects the reputation, which can be harmful to the company’s sustainability in the long run. For the bankers, considering the credit risk is one of the most critical factors (Burns 2010), it can reflect the past record of the entrepreneurship, such as credibility, financial statement and the previous sale, etc. Since failure is exposed, the undesirable result is that the credit risk definitely increases and thus the bankers will mistrust the company. For the customers, failure will affect the buyer who are doubted about the brand and the products and hence the sales would decline, become a bad result in maintaining the operation of the firms.
Apart from the potential loss, the failure of entrepreneurship can lead to psychological detriment. Failure can diminish self-esteem and be harmful to the decision of entrepreneurial activity. Self-confidence is one of the essential traits of entrepreneur since it can help certain and believe the judgement and ability, especially in facing the uncertainty. In case failure happens, the entrepreneur courage would decrease and may not have the willingness to take greater risks and live with even greater uncertainty. The sole trader may not conquer and recover from the pain of failure and thus cannot make a rational decision making, resulting in another potential hazard in the future.
On the other hand, some people think that failure can be a desirable outcome of entrepreneurship as it can bring an affirmative consequence. Pierre Omidya, the Founder of eBay Inc, stated that the starters need to fail something as a learning...

Find Another Essay On Failed Entrepreneurial Activity

Germany Essay

4216 words - 17 pages house, or the Bundestag, consists of a minimum of 656 deputies. The Bundestag has a speaker, or president, usually elected from among the largest parliamentary group. It has three main tasks: to act as the legislative body, to elect the federal chancellor, and to control government activity. Any changes to the Basic Law requires a two-thirds majority in both houses of parliament. Thus the opposition parties can prevent amendments to the

Management of Change: Term Paper

4165 words - 17 pages 1992.A number of factors appear to have contributed to this turnaround. Apart from market changes, new product launches, and cost-cutting measures, the level of bureaucracy within the company was also attacked. A company that had been started by entrepreneurial engineers, advisers urged that it had become too centralized. In addition, new ideas were being squashed if they appeared too unorthodox. Hewlett Packard's response was to return to a

Exploring the Digital Age

4268 words - 17 pages . Many companies in history have missed these opportunities and have paid dearly for it. IBM, for instance, lost its position as a market leader when it failed to understand the potential of the personal computer. Xerox did not recognize the potential of a graphical user interface. Both these companies are examples of successful firms that missed the imminent arrival of a technology, and the prospect of taking advantage of the opportunities

Why Some Small Businesses Fail

2026 words - 8 pages small businesses is very high. The probability that your new business will make it past the third year is less than 25%. In other words, over three-quarters of entrepreneurial dreams land up as a distressing memory. Statistics are however, sometimes deceiving. Many start-ups merge with other ventures or act as a launch pad for other business activities. However, the percent of small businesses that fail is still extremely high. When

The European IT Industry: UK

2143 words - 9 pages providers of WAP and GPRS information services although these technologies have so far failed to capture the mass market in the UK.2.2 Applications and E-business SectorE-commerce revenue is estimated to reach $16billion by the end of 2001. There are literally hundreds of ISPs active in the market, the three largest being Freeserve, AOL and Compuserve. The British Internet market, the second largest in Europe, was worth $550 million in 2000. Britain is

Compare how the organizational structures and communication policies of The Communications Task Force and Company K

6770 words - 27 pages , procedural consistency was ensured which resulted in an assembly-line orientation as one supervisor was mainly in charge of ensuring that the fax coding system was followed to the letter, which shows a narrow range of activity, and specialization. Large organizations are composed of people performing a collection of specialized jobs. Company K has a geographical centered management structure where each operational structure is named after the part of

Polyprod and Ben & Jerry's-Case analysis

3605 words - 14 pages The first activity in planning and implementing organisational change is to motivate commitment to it. The activity of motivating change aims to prevent the failure of change efforts by attending to the tasks of creating readiness for change and overcoming resistance to change (Cummings & Worley, 2009). In our cases of two very different organisations, high-tech product manufacturer and distributor PolyProd, and Vermont-based ice-cream maker

The State as One Actor Amongst Many

2387 words - 10 pages economy. Audit is a system by which departments are subjected to performance targets and reviews. These are employed in areas such as healthcare and education to control and standardise the activity across the country. This is another form of “arms-length control” by which the government exerts power. However, the audit system is not without drawbacks. It involves the inclusion of many more steps for the government to exert power; government regulation

Gangs

2896 words - 12 pages persons who are organized and work together or socialize regularly; a group of adolescent hoodlums or criminals; gang up on; to attack as a group.” 3. Violence: as defined in Websters is “Physical force or activity used to cause harm, damage or abuse” 4. Youth: as defined in Websters is “The appearance or state of appearing young; the time of life when one is not considered a adult; a young person” III. Our current juvenile justice system is no

Debate Brief

3090 words - 12 pages regularly; a group of adolescent hoodlums or criminals; gang up on; to attack as a group."3. Violence: as defined in Websters is "Physical force or activity used to cause harm, damage or abuse"4. Youth: as defined in Websters is "The appearance or state of appearing young; the time of life when one is not considered a adult; a young person"III. Our current juvenile justice system is no longer adequate for today's hardened young gang members

Leadership

3781 words - 15 pages management thinking; it systematized manufacturing organizations, set policies and procedures to control the workers, emphasized on cost accounting, wage, and production controls. (Batman & Snell, 1996) The limitation of this approach was that it failed to lead to the widespread production efficiency, and it led to the thinking of scientific management. This approach was introduced by Frederick Taylor (1856-1915), who was considered the

Similar Essays

Creative Writting Essay

2431 words - 10 pages . Competition among firms which is a commonplace for entrepreneurs has been shown to have a positive effect in the growth of economy (Carree, 2002). The increased numbers of participants in the market compounded with entrepreneurial activity are some of the contributions of entrepreneurship in economic growth (Chell & Ozkan, 2010). In particular, local competition which is measured in terms of the relative number of businesses in a region per

Creating And Managing A New Business Venture

2449 words - 10 pages Virgin Atlantic. He has been involved in ventures as diverse as radio, video games, insurance and space travel. He has also experienced failure for example movies produced by Virgin Visions and the sinking of his powerboat, Challenger 1. As well as his success he is known for his personal exploits for his business ventures”. Stokes & Wilson (2010). Branson has shown entrepreneurial characteristics such as the ability to innovate and follows Druker

Small Business Growth Essay

4654 words - 19 pages (Penna, 200).Theoretical foundations of small business growthSchumpeter has been instrumental in shaping the concept of entrepreneurial activity, identifying the existence of a transition from being entrepreneurial to a traditionally managed organization.Drucker, (1999) also saw this transition, but focused on the managerial difficulties presented by growth. Focusing on the managerial activities associated with the firm provides insight regarding

Guinea's Unequal Processes And Corruption Essay

1197 words - 5 pages Guinea, the progress toward greater economic freedom has been unequal, but typically going in a downward spiral overall. Property rights, business freedom, monetary freedom, and financial freedom have all become deteriorated statistics for the country of Guinea (Guinea, 2014). The entrepreneurial environment in Guinea remains oppressed because of several factors plaguing this country. An overbearing regulatory framework, exacerbated by poor