Professor David Storey writes in The FT:“In the UK, the evidence is that novices are neither more nor less likely to have a business that either grows or survives than experienced founders…
One reason for this is the role of chance in determining whether a business prospers. In spite of volumes of airport lounge books identifying simple recipes for success, the reality is that starting a business is risky. The outcome depends heavily on luck - whether parking is suddenly banned outside your hairdressing shop, whether you or a member of your family become ill, or whether your Great Aunt Mabel dies and leaves you an unexpected legacy..”
Thank you David.
This view 100% per cent supports the recent findings of our Magic Million Survey. To quote the survey:
“Beware when people attribute success to certain key factors/activities - performance (good and bad) is probably related far more to chance than skill, yet people rationalise their success and create a cause–effect explanation.”
And
“The big difference between winners and losers isn’t the ‘good stuff of growing a business’ but massive energy and a decent dose of good luck.”
RELEVANT LINKS
The Elusive Magic Million - how to break through the £1m barrier and why you need a sound exit strategy (Growing Business, April 2008)
The Magic Million - webpage
Getting a million out of the business - excerpt from The Magic Million Boardroom Briefing (SMEweb, April 2008).
Professor David Storey in The FT - the full article.
11 comments:
I thought Storey's article was wide of the mark. He was partially correct re the optimism, timing, energy, and right place/time factors, but he ought to have pointed out that which has kept him, very comfortably, a salary-man for many years to date; One needs effective strategic tools and metrics to navigate the succesful business.
His article propounds that one might as well use savings for a trip to Vegas as a suitabole option to starting a business, as it would have an equal chance of success.
He also condemns any failed business leader to the gallows, rather than be given a 2nd chance to try again, and encourages the British stigma applied to "failure."
Storey's article was dissapointingly morose, but is especially astounding when from a Dean of a reputable B-School.
It strikes me, that Storey's Dickensian approach to business in the UK, is precisely why so many would-be entrepreneurs fail before they have even got sarted.
He systematicaly fails to inform the budding entrepreneur that if one has a great idea that excites and pre-occupies the mind, the best thing to do is to find a Cravenesque, (i.e. optimistic yet pragmatic and honest,) type workshop, and providing sufficient peer advice is sought, and tools are sourced, go for it!
But then, perhaps this is why Storey doesn't actually run a succesful business himself, but instead relies upon the eternal safety of academic institutional tenure for his own path....
Reading the article, one can only elicit that, if it were up to Storey, everyone would be hiding under their duvet's until the alarm clock goes off, before heading off to their respective jobs at Sunshine Desserts.
Outcome depends on luck? Winners get a decent dose of good luck?
Rubbish! You create you're own 'luck' by always being attuned to your prospects, clients. Even if parking is banned outside your hairdressing shop. Bad luck - or bad attitude (i.e. blame it on the outside world so you don't have to change your ways)
Karin H. (Keep It Simple Sweetheart, specially in business)
Thanks for these comments... Interestingly enough the unanimous response to the 'decent dose of luck' quote from our survey is exactly Karin's 'entrepreneurs make their own luck' line of argument. All we did was quote the successful entrepreneurs and you have quite rightly qualified their comments. Robert
Very Successful Brit Entrepreneur's comments about David Storey and David's approach are typical of the response that David often invokes. I am sorry that you reacted so vehemently but I love to see passion (frustration? anger?)in an argument. Robert
Robert - mostly passion, partly frustration and anger. Abeit, I'm surprised that you yourself seem so close to the survey, and indeed Storey that you can't see why it was I was so "vehemently" argumentative of Storey's stance.
David Storey holds a huge responsibility in being a Professor in his chosen field. This especially so, as unless one is familiar with academia, academics, and the manner in which "research" is sometimes conducted and extrapolated, there is a strong tendency to believe that their word ought to be revered as some sort of absolute. A dangerous premise.
His grasp of his responsibilities surely ought to reflect the urgent need for more British entrepreneurism, and as such, encourage the Thinking-About into the Doing. Then, and only then, does the UK have a fighting chance in the world of can-do/will-do, which of late, seems to mainly exist in the emerging market areas of China/India/South America/Africa et al.
The FT landed on my doorstep, and I was initially excited at the prospect of reading an article by Storey. By the end of the article, any such positivity had been turned, with each of his ill-directed words, into anger.
Having read, loved, utilised and recommended your books all over the world, (not Turkey, it was not me, old chap) it is difficult to see that they they would have had anywhere near such an immediate impact, had they taken the Storey storyline!
Imagine if he had written his offending article in the form of an introduction in all of your series of books - I doubt if anyone would have got past those initial pages, and your sales past 100 per copy.
Storey has made a hitherto comfortable living, and if this is the sum total of his "wisdom," it's time for him to do the right thing and give up his comfy tenure, in order to secure some new blood; Modern thinkers who believe in a 3dimentional approach to business - great product/service, tools and passion. This would surely have a far better effect on would-be entrepreurs than Storey's pin-striped, circa 1970 bank manager approach to the new millenium.
If so fond of him, perhaps you'd have Storey join your Directors Centre and go and talk directly to those wanting to take the next step? I doubt it, somehow. And, being somewhat of a fan of your business/services, I definitely wouldn't advise it.
Finally, if David regularly "invokes" a respnse such as mine, isn't it a clear reflection of his funding sources, and lack of independent passion for business?
My opinion is, that it is time to go Dr. Storey, fear and stagnation finds us all eventually, even the "wise" it seems.
Very Successful Brit Entrepreneur... more passion... great!
One point. The survey I refer to is 'The Magic Million' looking at the difference between people who have taken a million pounds out of the business [or broken the million pound turnover barrier] and those that aspire to do so.
It was one we ran earlier on in the year and has no connection with David Storey. I was just saying that our entrepreneurs felt that luck came into the 'success' equation along with all the other things (focus, determination, guts...strategy, marketing, teams). Our survey revealed that there is no single magic formula or silver bullet. (No surprises there!)
I'd be delighted to continue the Storey discussion offline. Do email me at rc@directorscentre.com
Robert
Robert, understood and thank you for the invitation, I'll email you directly.
In the meanwhile, I refer everyone to the Luke Johnson section in the FT today, entitled "What's so terrible about making money?" - it's the section Dr. Storey was filling in for last week.
What a refreshing and insightful contrast to Storey's article!
Johnson mentions luck, briefly, but goes on to highlight the problems with British cultural and institutional (including academia) perceptions with entrepreneurism, thus leading to a lack of overall initiative, and compounding the fear factor in starting a business. He cites research carried out for the Prince's Trust, "which showed that 73% of young respondents felt schools and colleges promoted "safe" careers rather than the idea of start-ups."
He also says "innovation and progress come from embracing markets and encouraging entrepreneurs."
and "According to the Global Entrepreneurship Monitor, overall early stage entrepreneur activity in Britain involves about 5.6% of the population, a much lower rate than in the US, Brazil and China."
I rest my case re the problems with Storey and friends.....
Good on you, Luke Johnson!
Robert, understood and thank you for the invitation, I'll email you directly.
In the meanwhile, I refer everyone to the Luke Johnson section in the FT today, entitled "What's so terrible about making money?" - it's the section Dr. Storey was filling in for last week.
What a refreshing and insightful contrast to Storey's article!
Johnson mentions luck, briefly, but goes on to highlight the problems with British cultural and institutional (including academia) perceptions with entrepreneurism, thus leading to a lack of overall initiative, and compounding the fear factor in starting a business. He cites research carried out for the Prince's Trust, "which showed that 73% of young respondents felt schools and colleges promoted "safe" careers rather than the idea of start-ups."
He also says "innovation and progress come from embracing markets and encouraging entrepreneurs."
and "According to the Global Entrepreneurship Monitor, overall early stage entrepreneur activity in Britain involves about 5.6% of the population, a much lower rate than in the US, Brazil and China."
I rest my case re the problems with Storey and friends.....
Good on you, Luke Johnson!
Very Successful Brit Entrepreneur's comments about David Storey and David's approach are typical of the response that David often invokes. I am sorry that you reacted so vehemently but I love to see passion (frustration? anger?)in an argument. Robert
I thought Storey's article was wide of the mark. He was partially correct re the optimism, timing, energy, and right place/time factors, but he ought to have pointed out that which has kept him, very comfortably, a salary-man for many years to date; One needs effective strategic tools and metrics to navigate the succesful business.
His article propounds that one might as well use savings for a trip to Vegas as a suitabole option to starting a business, as it would have an equal chance of success.
He also condemns any failed business leader to the gallows, rather than be given a 2nd chance to try again, and encourages the British stigma applied to "failure."
Storey's article was dissapointingly morose, but is especially astounding when from a Dean of a reputable B-School.
It strikes me, that Storey's Dickensian approach to business in the UK, is precisely why so many would-be entrepreneurs fail before they have even got sarted.
He systematicaly fails to inform the budding entrepreneur that if one has a great idea that excites and pre-occupies the mind, the best thing to do is to find a Cravenesque, (i.e. optimistic yet pragmatic and honest,) type workshop, and providing sufficient peer advice is sought, and tools are sourced, go for it!
But then, perhaps this is why Storey doesn't actually run a succesful business himself, but instead relies upon the eternal safety of academic institutional tenure for his own path....
Reading the article, one can only elicit that, if it were up to Storey, everyone would be hiding under their duvet's until the alarm clock goes off, before heading off to their respective jobs at Sunshine Desserts.
Friends at ETC VENUES among the fastest growing UK businesses http://tgr.ph/mWcY3V Telegraph #gazelles
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