Around 71% of U.S. high-net-worth individuals believe that failure positively is essential for an economy to grow. This is lower that 91% in the Middle East and 80 percent in Asia. It is also lower that the global average of 74% of wealthy individuals who think failure is the stepping-stone to success for a positive economy.
Ledbury Research conducted the survey of more than 2,000 high net worth individuals in partnership with the Barclays Behavioral Finance. Respondents were based in 17 countries around the world. More than 750 of the wealthy individuals surveyed identified themselves as entrepreneurs.
In the U.S., only 29% of respondents in the West think past failure increases the chance of future success, the lowest percentage across regions. Forty-eight percent of respondents in the Northeast said that the recent global crisis brought opportunities. While in the Midwest, respondents were the most optimistic. Forty-nine percent said they agree business failure have taught them a lot, while 77% said failure positively is essential for an economy to grow.
Among the respondents who identified themselves as entrepreneurs, one-thirds admitted that failure encouraged them to try again while 29% said they were able to bounce back quickly. They also saw opportunities in the economic crisis; with 55% agreeing the crisis provided them with opportunities.
Among the entrepreneurs, 34% say that failure encouraged them to try again and 29% report being able to bounce back quickly, compared with 19% and 17% of non-entrepreneurs.
“The U.S. and Europe may have historically dominated entrepreneurship, but the survey findings suggest that the global landscape has shifted. Today, dynamic and fast-growing economies are catching up,” says Steve Alper, Managing Director, Head of Market Development, Barclays Wealth and Investment Management, Americas. “A culture that tolerates risk and experimentation is crucial to supporting entrepreneurship.”