One of the most sustainable ways to usher in growth is through greater levels of entrepreneurial activity.
While there is no quick fix to becoming a successful entrepreneur, none is born with a natural aptitude to create billion-rand businesses overnight. However, there are some key distinguishing traits which separate the best business minds from the rest and the good news is our improvement of understanding of psychology and science is leading to vastly improved levels of awareness and training for young entrepreneurs - with far better outcomes.
Many may be quick to point out that luck and a silver spoon greatly influence business success. However, just consider that MIT has recently done detailed research on how little of the success in entrepreneurial endeavours results from luck or birth-based characteristics as opposed to learned knowledge and skills.
The survey results indicate that the firms in the sample founded by first-time entrepreneurs (compared to experienced founders) have a slightly lower probability of successful exits (IPO or M&A) and have a much higher chance of failed outcomes (bankruptcy or fire sale) when compared to the same subjects’ subsequent entrepreneurial attempts. The results for bankruptcy and forced sales are illuminating and make the point clear - 37.8% of first-time founder start-ups stare down the barrel versus 27.7% for an experienced founder.