Learning from Failure
AbstractFailures may lead to ultimate success in both nature and business. Just as dynamic ecosystems depend on death to replace senescent organisms with vigorous growth, the termination of uneconomic activities is essential to wealth creation. This paper explores the benefits of failures, and uses aspects of the analogy between death and business failure to analyze how failures in business economize upon resources and lead to better firms and greater efficiencies. A distinguishing feature of our work is the analytic use of competitive markets to provide insights into the processes of success and failure. Recognizable patterns of business failures are discussed in an effort to provide entrepreneurs and mangers with a basis for understanding and acting upon changing circumstances.
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Bibliographic InfoPaper provided by Ball State University, Department of Economics in its series Working Papers with number 200402.
Length: 20 pages
Date of creation: Jan 2004
Date of revision: Jan 2005
Publication status: Published in Mid-American Journal of Business 20 no. 1 (2005): 13-20.
Entrepreneurship; Business Failure; Evolution; Uncertainty; Learning from Failure;
Other versions of this item:
- R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
- Z0 - Other Special Topics - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-07-09 (All new papers)
- NEP-BEC-2006-07-09 (Business Economics)
- NEP-ENT-2006-07-09 (Entrepreneurship)
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