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February 05, 2025 - 08:30

"I get knocked down, but I get up again" Learning from failure in entrepreneurship

by Jonathon Murphy

The failure of a business is unfortunately a common occurrence for entrepreneurs. But how can you turn this experience into a positive for your future endeavours?

A key part of our role in the City of Turku’s Business Development Team is to raise the profile of the international entrepreneurs we work with. For example, the Career in Southwest Finland website is home to a number of interviews, videos and testimonials from entrepreneurs who successfully launched their own company in the region. However, when going through this website recently I was shocked to realise that some of these companies are sadly no longer operational today.

This got me thinking about the need for entrepreneurs to learn to pick yourself up again when things go south. Here in Finland, we have the concept of sisu, which broadly translates to resilience, or the need to keep going in the face of adversity. The term originates from Finland’s military past (where it often had to defend itself against much larger foes), but I believe it will resonate with many entrepreneurs, especially during the early days of their business.

Much of the marketing material about Finland (including our own) paints a very positive picture. However, although Southwest Finland is certainly a supportive environment for entrepreneurs, the harsh truth is that not every business model will succeed. Some are doomed to fail from the start, perhaps due to a lack of preparation or market knowledge, whilst unexpected, ‘black swan’ events (such as the Covid-19 pandemic) can put a hole in even the best-laid business plan.

So how can our services support international entrepreneurs who are staring the end of their business in the face? I discussed this topic with our Business Coordinator Teemu Saarenpää. In his experience, losing a business can hit harder than expected due to the emotional investment of being self-employed; when you put your heart and soul into your own company, being forced to let go can be much more devasting than leaving a ‘regular’ job.

However, the end of a single business should not mean the end of entrepreneurship altogether. As Teemu advises:

- If your business failed, sit down and analyze what worked and what didn't, and make a new plan. Covid destroyed my business, but I didn't give it up - I just analyzed which parts of the business were "pandemic-proof", and created a new, more focused business based on that.

Alternatively, it might be possible to pivot the company in a new direction before the plug is pulled. One of Finland’s most famous companies, Nokia, went through such a transition, shedding its failing mobile devices division and reemerging as a leader in telecommunications equipment (for a full account of this process, I recommend Transforming Nokia by their former Chairman Risto Siilasmaa).

Whether you would like to salvage something from your business, or if you would like to see something new rise from the ashes, we recommend that you speak to an advisor before making any final decisions. Ending a business in Finland can be a lengthy process, so it is important to be aware of the implications beforehand.

In a final word of inspiration for all entrepreneurs, Teemu cites Finnish poet Aaro Hellakoksi: striking out on your own is the harder path - but at least it's your path, and no one else's. With our support (and a bit of luck), I hope the rewards are worth the risk.