Why "Failed" Entrepreneurs Are Your Company's Greatest Asset

In the fiercely competitive Australian business landscape, where nearly half of all new businesses fail within their first few years, there's a hidden pool of talent that employers are overlooking: failed entrepreneurs. While the term "failed" might carry a negative connotation, it often masks a wealth of valuable skills and experiences. These individuals, forged in the fires of starting and running their own ventures, possess the resilience, innovation, and drive that companies crave.

Rather than shying away from candidates with entrepreneurial backgrounds, Australian businesses should recognize their potential to become invaluable intrapreneurs – employees who bring an entrepreneurial mindset and skill set to drive innovation and growth from within.?

Companies like Atlassian and Telstra, renowned for their intrapreneurial cultures, have demonstrated the power of harnessing this internal drive to achieve remarkable success.

This article will challenge the misconception that "failed" entrepreneurs are a liability and reveal why they can be a company's greatest asset. By understanding the unique strengths these individuals bring to the table, employers can unlock a powerful source of talent and gain a competitive edge in the Australian market.

Resilience and Grit: Bouncing Back Stronger

The Australian entrepreneurial journey is rarely a smooth ride. With statistics showing that nearly half of all new businesses fail within their first few years (ABS, 2021-22), it's clear that navigating this landscape requires immense resilience and grit. But these setbacks, while undoubtedly challenging, forge an invaluable strength within entrepreneurs. They learn to bounce back from adversity, adapt to changing circumstances, and persevere through obstacles – qualities that are highly sought after in any employee, especially intrapreneurs.

Take Mike Cannon-Brookes, co-founder of Australian software giant Atlassian. While Atlassian is now a global success story, their early days were marked by numerous rejections from investors and the challenges of building a business with limited resources. Cannon-Brookes has often spoken about the importance of perseverance, learning from mistakes, and never giving up - even when faced with seemingly insurmountable obstacles. This resilience was not only crucial in getting Atlassian off the ground but also in navigating the complexities of growing a global company.

This resilience translates directly into an intrapreneurial ability to:

• Overcome internal obstacles: Intrapreneurs often face resistance to new ideas or challenges in navigating internal processes. Their resilience enables them to persevere and champion their initiatives, much like Cannon-Brookes had to overcome initial skepticism and resistance to build Atlassian.
• Navigate bureaucratic challenges: Large organizations can be complex. Intrapreneurs with resilience can effectively navigate bureaucracy and push for change, just as Atlassian had to adapt and evolve as it grew into a large organization.
• Handle setbacks and criticism: Not every project or idea will be an immediate success. Resilient intrapreneurs can take constructive criticism, learn from setbacks, and come back stronger, mirroring the iterative process of building a successful company like Atlassian.
• Maintain motivation and focus: Driving innovation within a company requires sustained effort and focus. Resilient intrapreneurs can maintain their motivation even when faced with long timelines or slow progress, drawing inspiration from the long-term vision and dedication required to build a company like Atlassian.

In essence, "failed" entrepreneurs, like those who succeeded despite early challenges, have developed a unique resilience that allows them to thrive in the face of challenges. This makes them ideal intrapreneurs, capable of driving innovation and pushing boundaries within established organizations, just as Mike Cannon-Brookes has done with Atlassian.

Problem-Solving and Innovation: Turning Challenges into Opportunities

Entrepreneurship, at its core, is about identifying needs and creating solutions. In the dynamic Australian market, where businesses face constant disruption and evolving customer demands, this ability to problem-solve and innovate is more crucial than ever. "Failed" entrepreneurs, having navigated the complexities of building a business from the ground up, possess a unique advantage in this area. They often bring something entirely new to the table, challenging the status quo with disruptive ideas and innovative solutions.

Unlike employees who have only operated within established systems, "failed" entrepreneurs have firsthand experience in imagining and creating something from nothing. They've faced the challenges of developing a product or service that meets a real need in the market, often with limited resources and in the face of uncertainty.?

This experience fosters a creative and resourceful mindset, pushing them to find innovative solutions to overcome obstacles and achieve their goals.

Within a company, these problem-solving skills manifest as:

• Identifying areas for improvement: Intrapreneurs with an entrepreneurial background are adept at spotting opportunities for innovation and growth. They can analyze market trends, identify unmet customer needs, and bring fresh perspectives to existing challenges.
• Developing creative solutions: They don't just identify problems; they actively seek out innovative solutions. Whether it's developing a new product, streamlining a process, or enhancing customer experience, they can apply their entrepreneurial creativity to drive positive change.
• Embracing experimentation and iteration: "Failed" entrepreneurs understand that innovation requires experimentation and iteration. They are comfortable with taking calculated risks, testing new ideas, and learning from both successes and failures to arrive at the best solution.
• Collaborating and building consensus: While entrepreneurs are often independent, they also understand the importance of collaboration. As intrapreneurs, they can effectively communicate their vision, build consensus among stakeholders, and inspire others to embrace innovation.

By fostering an environment that values intrapreneurship, companies can tap into this innovative potential and empower their employees to become agents of change. Just as entrepreneurs drive innovation in the broader market, intrapreneurs can ignite the same spark within an organization, leading to new ideas, improved processes, and ultimately, a stronger competitive edge.

Proactive and Self-Driven: Taking Initiative and Owning the Outcome

The entrepreneurial journey is often a solitary one. Founders are accustomed to taking the initiative, setting their own goals, and being accountable for their success or failure. This self-reliance breeds a proactive and self-driven mindset that can be a tremendous asset in any organization, especially for those seeking intrapreneurs.

Unlike employees who may be accustomed to waiting for instructions or relying on established procedures, "failed" entrepreneurs have learned to be proactive. They are comfortable with ambiguity, identify opportunities, and take the initiative to drive progress without needing constant direction. This proactive approach can be a catalyst for innovation and positive change within a company.

Here's how this translates in an intrapreneurial context:

• Identifying and seizing opportunities: Proactive intrapreneurs don't wait for instructions; they actively seek out areas where they can contribute and make a difference. They identify opportunities for improvement, new projects, or innovative solutions and take the initiative to pursue them.
• Taking ownership and accountability: They are not afraid to take ownership of their work and be accountable for the outcomes. This sense of responsibility drives them to go the extra mile, meet deadlines, and ensure projects are completed successfully.
• Working independently and effectively: Having navigated the challenges of entrepreneurship, they are comfortable working independently and managing their own time and priorities. This self-sufficiency allows them to contribute effectively without constant supervision.
• Motivating and inspiring others: Their proactive approach can be contagious, inspiring colleagues to take initiative and contribute more actively. They can become leaders within the organization, driving a culture of proactivity and innovation.

By embracing employees with this proactive and self-driven spirit, companies can foster a culture of intrapreneurship, where individuals are empowered to take ownership, drive progress, and contribute to the organization's success. This not only benefits the company but also creates a more engaging and fulfilling work environment for employees.

Risk-Taking and Learning from Failure: Embracing the Opportunities

One of the most common misconceptions about "failed" entrepreneurs is that they are risk averse. In reality, they are often the opposite. The entrepreneurial journey involves taking calculated risks, stepping outside their comfort zone, and learning from failures along the way. This willingness to embrace risk is a valuable trait that can be a significant asset to any organization.

"Failed" entrepreneurs understand that failure is not a sign of weakness but rather a learning opportunity. They are not afraid to make mistakes, as they know that these mistakes can lead to valuable insights and growth. This ability to learn from failure allows them to adapt, improve, and come back stronger, making them more resilient and better equipped to handle future challenges.

Within a company, this risk-taking and learning mindset translates into:

• Embracing new challenges: "Failed" entrepreneurs are not afraid to step outside their comfort zone and take on new challenges. They are willing to experiment, try new approaches, and embrace the unknown.
• Learning from mistakes: They view mistakes as opportunities for growth and learning. They are not afraid to admit their mistakes and use them as a basis for improvement.
• Encouraging a culture of experimentation: They can inspire a culture of risk-taking and experimentation within the organization, encouraging others to try new things and learn from their experiences.

By fostering a culture that values risk-taking and learning from failure, companies can encourage their employees to embrace innovation and push the boundaries of what is possible. This willingness to take risks is essential for driving continuous improvement and staying ahead of the competition.

Strong Work Ethic: The Foundation of Success

Building a business from the ground up demands an exceptional work ethic. It requires long hours, unwavering dedication, and a willingness to go above and beyond. "Failed" entrepreneurs, having experienced this firsthand, possess a work ethic that is often far stronger than those who have only operated within the structured environment of established companies.

These individuals are accustomed to wearing many hats, juggling multiple responsibilities, and pushing themselves to the limit to achieve their goals. They understand the value of hard work, perseverance, and commitment – qualities that are essential for success in any role, especially in the dynamic world of intrapreneurship.

Within a company, this strong work ethic translates into:

• Meeting deadlines: They are driven to complete tasks and projects on time, even when faced with obstacles or tight deadlines, having honed their time management skills in the high-pressure environment of a startup.
• Going the extra mile: They consistently go above and beyond their assigned responsibilities, taking initiative and taking ownership of their work, a habit ingrained from their entrepreneurial experience.
• Demonstrating reliability and consistency: They are known for their dependability and can be counted on to deliver results, having learned the importance of consistency in building a business.

By recognizing the strong work ethic ingrained in "failed" entrepreneurs, companies can gain employees who are not only dedicated and driven but also understand the value of perseverance and commitment. This translates into a workforce that is more productive, engaged, and committed to achieving organizational goals.

Adaptability and Versatility: Thriving in a Changing Landscape

The ability to adapt and evolve is crucial in today's ever-changing business world. "Failed" entrepreneurs, having navigated the unpredictable journey of building a startup, possess a unique level of adaptability and versatility. They've learned to pivot, adjust their strategies, and wear many hats to overcome challenges and seize opportunities.

Unlike those who have only experienced the structured environment of established companies, "failed" entrepreneurs have often had to adapt to unexpected situations, limited resources, and constantly shifting market demands. This experience fosters a flexible and resourceful mindset, allowing them to thrive in dynamic environments and embrace change with confidence.

Within a company, this adaptability and versatility translate into:

• Embracing new roles and responsibilities: They are comfortable taking on new challenges and responsibilities, even outside their core expertise. Their entrepreneurial experience has equipped them to learn quickly and adapt to different roles as needed.
• Thriving in ambiguous situations: They are not afraid of uncertainty or ambiguity. They can navigate complex situations, make decisions with limited information, and adjust their approach as new information becomes available.
• Contributing across departments: Their diverse experience allows them to contribute effectively across different departments and teams. They can see the bigger picture and understand how their work connects to the overall goals of the organization.
• Responding effectively to change: They are comfortable with change and can adapt quickly to new situations, technologies, or market trends. This flexibility makes them valuable assets in today's dynamic business environment.
• Championing change: Having experienced the need for constant adaptation and improvement in their own ventures, they become excellent change agents within an organization. They can identify areas for improvement, champion new ideas, and drive progress, inspiring others to embrace a culture of positive change.

By valuing adaptability and versatility, companies can foster a culture of innovation and resilience. Employees who can embrace change, wear many hats, and contribute across different areas are essential for navigating the complexities of the modern business world.

Leadership and Vision: Inspiring and Guiding Others

Entrepreneurs, by their very nature, are leaders. They possess the unique ability to take an idea, transform it into a compelling vision, and then break it down into manageable activities that drive the development and realization of that vision.? Even in ventures that don't achieve commercial success, the experience of leading a team, setting goals, and striving towards a shared vision develops valuable leadership skills that can be a significant asset within any organization.

"Failed" entrepreneurs have often had to navigate challenges, make difficult decisions, and motivate their teams in the face of uncertainty. They've learned to communicate effectively, build consensus, and inspire others to believe in their vision, even when faced with setbacks. These leadership qualities are highly transferable and can be invaluable in driving innovation and achieving organizational goals.

Within a company, these leadership skills manifest as:

• Inspiring and motivating others: They can effectively communicate their ideas, inspire their colleagues, and create a shared sense of purpose. This ability to motivate and engage others is essential for driving collaboration and achieving common goals.
• Building and leading teams: They have experience in building and leading teams, even in challenging circumstances. They can foster a positive and productive team environment, delegate effectively, and empower team members to contribute their best work.
• Making strategic decisions: They have honed their decision-making skills through the challenges of entrepreneurship. They can analyze situations, weigh different options, and make informed decisions that align with the organization's strategic goals.
• Mentoring and developing others: They can share their experiences and insights to mentor and develop others within the organization. This mentorship can help foster a culture of leadership and intrapreneurship, empowering others to take initiative and drive innovation.

By recognizing and valuing the leadership potential of "failed" entrepreneurs, companies can cultivate a strong leadership pipeline and create a more engaged and empowered workforce. These individuals can inspire their colleagues, drive innovation, and contribute to a culture of leadership at all levels of the organization.

Passion and Drive: Fueling the Fire of Innovation

Entrepreneurs are driven by a deep passion for their ideas and an unwavering determination to bring them to life. This passion and drive are contagious, inspiring those around them and creating a sense of excitement and purpose. Even in ventures that don't achieve commercial success, this inner fire fuels resilience, creativity, and a commitment to continuous improvement – qualities that are highly valuable in any organizational setting.

"Failed" entrepreneurs may have experienced setbacks, but their passion and drive remain undiminished. They've learned to channel their energy into new opportunities, applying their enthusiasm and determination to overcome challenges and achieve their goals. When they find a company whose vision resonates with their own values, they will seek to understand that vision intimately and will drive that vision and mission with every fiber of their being. This infectious passion can be a catalyst for innovation and positive change within a company.

Within a company, this passion and drive translate into:

• Infusing energy and enthusiasm: They bring a positive and energetic approach to their work, inspiring their colleagues and creating a more dynamic and engaging work environment.
• Promoting a culture of innovation: Their passion for new ideas and their drive to make a difference can foster a culture of innovation within the organization, encouraging others to think creatively and pursue new possibilities.
• Championing continuous improvement: Their entrepreneurial experience has instilled in them a commitment to continuous learning and improvement. They are always seeking ways to do things better, optimize processes, and enhance performance.
• Maintaining a positive outlook: Even in the face of challenges, they maintain a positive and optimistic outlook, inspiring their colleagues and contributing to a more resilient and adaptable workforce.

By embracing employees with passion and drive, companies can cultivate a more engaged, innovative, and motivated workforce. This not only benefits the individuals but also creates a more dynamic and successful organization as a whole.

Addressing the "Flight Risk" Misconception

One of the biggest concerns employers have about hiring "failed" entrepreneurs is the perception that they are a "flight risk" – more likely to leave for a new opportunity or to start another business. However, this perception is often misguided. In reality, the entrepreneurial experience can actually make these individuals more committed to finding the right long-term fit and contributing to a company's success.

Here's why:

• Discerning and selective: Having gone through the challenges of building a business, "failed" entrepreneurs are often more discerning in their job search. They are not just looking for any job; they are looking for the right opportunity where they can truly contribute their skills and passion. This selectivity means they are more likely to stay in a role where they feel valued and fulfilled.
• Seeking stability and growth: The entrepreneurial journey can be unpredictable and unstable. Many "failed" entrepreneurs are seeking the stability and growth opportunities that a well-established company can provide. They are looking to contribute their skills and experience to a team and build a successful career within an organization.
• Driven by impact and purpose: "Failed" entrepreneurs are often driven by a desire to make a difference and contribute to something meaningful. They are looking for opportunities where they can use their skills and experience to make a positive impact, whether it's within a specific team, a department, or the organization as a whole.
• Aligned with company values: When "failed" entrepreneurs find a company whose values and mission resonate with their own, they are more likely to be loyal and committed employees. They are seeking a sense of belonging and purpose, and they are more likely to find it in an organization that shares their values.

Instead of viewing "failed" entrepreneurs as a flight risk, companies should recognize their potential to become highly engaged and valuable employees. By creating a supportive and empowering environment that fosters intrapreneurship, companies can attract and retain these talented individuals, benefiting from their unique skills, experience, and drive.

Conclusion: Embracing the Entrepreneurial Spirit

In today's dynamic and competitive business landscape, companies need individuals who are resilient, innovative, and adaptable. "Failed" entrepreneurs, far from being a liability, possess these qualities in abundance. They are not defined by their setbacks but by the invaluable skills and experiences they have gained on their entrepreneurial journey.

By challenging the misconception that "failed" entrepreneurs are a risk, companies can unlock a powerful source of talent. These individuals are not just employees; they are potential intrapreneurs who can drive innovation, champion change, and contribute to a company's success in remarkable ways.

It's time for a shift in perspective. Instead of focusing on the outcome of their ventures, employers should recognize the unique strengths that "failed" entrepreneurs bring to the table. By embracing their resilience, their passion, and their unwavering drive, companies can create a more engaged, innovative, and successful workforce.

In the words of Mike Cannon-Brookes, "It's not about avoiding failure; it's about learning from it and coming back stronger." Let's embrace the entrepreneurial spirit and the valuable contributions of those who have dared to dream and build, regardless of the outcome.