Entrepreneurship is a risky endeavor, and failure is a common outcome. In fact, it is estimated that over 90% of startups fail within their first five years. While failure is never easy, it can be a valuable learning experience for entrepreneurs. By studying the examples of Entrepreneurship failures, entrepreneurs can gain insights into what went wrong and how to avoid making similar mistakes in their own businesses. In this article, we will discuss five examples of entrepreneurship failures that you must know.
Here are 5 examples of Entrepreneurship failures you must know;
Once upon a time, the video rental firm known as Blockbuster was considered to be one of the most successful companies in the whole United States. Blockbuster Video had over 9,000 locations at its height and employed more than 84,000 employees at that time. The proliferation of internet streaming services like Netflix and Hulu, on the other hand, proved to be too much competition for the corporation. Blockbuster was unable to adjust to the shifting dynamics of the business, and as a result, the company was forced to declare bankruptcy in the year 2010.
- Lessons learnt
Examples of Entrepreneurship failures are not being flexible, need of being flexible in the face of changing market circumstances is one of the most important takeaways that can be drawn from the demise of Blockbuster. If company owners want to maintain their competitive edge, they need to be ready to adapt their operational strategies and accept emerging technology.
The year 1998 saw the beginning of Pets.com, an online firm that sold supplies for pets. The company’s sock puppet mascot and the advertisements that it ran during the Super Bowl helped it get a lot of attention. Pets.com, despite its early achievements, was dogged by a variety of operational issues throughout its history. It was difficult for the firm to turn a profit, and the high expenses of shipping and fulfillment made it tough for the company to compete with traditional brick-and-mortar pet supply shops. In the end, Pets.com filed for bankruptcy in the year 2000. This examples of Entrepreneurship failures you must know.
- Lessons learnt
The necessity of having a business strategy that is still sustainable is one of the most important takeaways that can be gained from the debacle that was Pets.com. The expenses and hazards that are connected with running a company are something that business owners need to carefully assess, and they also need to ensure that there is a clear route to profitability.
Once upon a time, the name “Kodak” was almost inseparable from “photography.” The business was established in 1888 and rose to the top in its field almost immediately after its inception. Yet, the proliferation of digital photography presented Kodak with a significant obstacle to overcome. The business was sluggish to adopt the new technology, which resulted in it missing out on a number of possibilities to be innovative. In the end, Kodak was forced to declare bankruptcy in the year 2012. examples of Entrepreneurship failures of kodak you must know.
- Lessons learnt
The significance of innovation is one of the most important things that can be taken away from Kodak’s demise as a company. If business owners want to continue to be successful in their fields, they need to be ready to make significant investments in research and development, as well as maintain a position of technological leadership.
The startup Juicero was established in 2013 with the intention of bringing about a sea change in the manner in which people enjoy freshly squeezed juice. The business invented a high-tech juicer that could extract juice from pre-packaged bags of fruit or vegetable juice. Yet the machine was pricey, and so were the juice bags, which could only be obtained from the firm itself since they were the only ones available.
When it was found out that the juice bags could be squeezed by hand instead of using the machine, the firm was finally made fun of as a joke. This rendered the gadget virtually ineffective. In 2017, Juicero went out of business.
- Lessons learnt
The collapse of Juicero teaches us a number of valuable lessons, one of the most important of which is the significance of offering clients a product that is of genuine use to them. From Examples of Entrepreneurship failures have a responsibility to thoroughly evaluate the requirements and preferences of their target market and to ensure that the goods or services they provide meet those requirements in a meaningful manner.
Theranos was a firm that specialized in medical technology and was established in 2003 with the intention of bringing about a revolution in blood testing. The business said that it had created a machine that could carry out a variety of diagnostic procedures with just a single drop of blood being required from the patient. Nonetheless, the fraudulent nature of the firm was finally made public. In addition to the ineffectiveness of the technology, the corporation has been manipulating test findings. Fraud charges have been brought against Theranos, and the company’s creator, Elizabeth Holmes, is presently being investigated for possible criminal involvement.
- Lessons learnt
The examples of Entrepreneurship failures, fall of Theranos provides a number of important lessons, one of the most important being the need of honesty and openness in business. While interacting with consumers, investors, and government officials, entrepreneurs have a responsibility to tell the truth. Every effort to mislead or trick other people will, in the end, be fruitless and unsuccessful.
The instances of unsuccessful business ventures that are provided in this article serve to illustrate the significance of factors such as meticulous planning, flexibility, innovation, customer value, and honesty. Failure is never simple, but it may provide business owners with invaluable lessons learned through experience. Entrepreneurs may acquire insights into what went wrong and how to avoid making similar errors in their own enterprises by analyzing the failures of others in the business world and learning from their experiences.
It has been said that one should “fail quickly and fail frequently.” This indicates that entrepreneurs should not be afraid to take risks and try new things, but they must also be willing to learn from their mistakes and pivot their businesses as necessary. While entrepreneurs should not be afraid to take risks and try new things, they must also be willing to learn from their mistakes.