TED Salon Brightline Initiative
Leticia Gasca: Don't fail fast -- fail mindfully
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We celebrate bold entrepreneurs whose ingenuity led them to success, but what happens to those who fail? Far too often, they bury their stories out of shame or humiliation -- and miss out on a valuable opportunity for growth, says author and entrepreneur Leticia Gasca. In this thoughtful talk, Gasca calls for business owners to open up about their failures and makes the case for replacing the idea of "failing fast" with a new mantra: fail mindfully.
Leticia Gasca - Author, entrepreneur
Leticia Gasca is co-founder of the movement Fuckup Nights and Executive Director for the Failure Institute, the first think tank in the world devoted to studying business failure and the reasons behind it. Full bio
Leticia Gasca is co-founder of the movement Fuckup Nights and Executive Director for the Failure Institute, the first think tank in the world devoted to studying business failure and the reasons behind it. Full bio
Double-click the English transcript below to play the video.
00:12
[This talk contains mature language
Viewer discretion is advised]
Viewer discretion is advised]
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If we traveled back to the year 800 BC,
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in Greece, we would see
that merchants whose businesses failed
that merchants whose businesses failed
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were forced to sit in the marketplace
with a basket over their heads.
with a basket over their heads.
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In premodern Italy,
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failed business owners,
who had outstanding debts,
who had outstanding debts,
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were taken totally naked
to the public square
to the public square
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where they had to bang their butts
against a special stone
against a special stone
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while a crowd jeered at them.
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In the 17th century in France,
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failed business owners
were taken to the center of the market,
were taken to the center of the market,
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where the beginning of their bankruptcy
was publicly announced.
was publicly announced.
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And in order to avoid
immediate imprisonment,
immediate imprisonment,
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they had to wear a green bonnet
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so that everyone knew they were a failure.
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Of course, these are extreme examples.
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But it is important to remember
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that when we excessively
punish those who fail,
punish those who fail,
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we stifle innovation
and business creation,
and business creation,
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the engines of economic growth
in any country.
in any country.
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Time has passed, and today we don't
publicly humiliate failed entrepreneurs.
publicly humiliate failed entrepreneurs.
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And they don't broadcast
their failures on social media.
their failures on social media.
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In fact, I think that all of us
can relate with the pain of failure.
can relate with the pain of failure.
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But we don't share the details
of those experiences.
of those experiences.
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And I totally get it, my friends,
I have also been there.
I have also been there.
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I had a business that failed
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and sharing that story
was incredibly hard.
was incredibly hard.
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In fact, it required seven years,
a good dose of vulnerability
a good dose of vulnerability
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and the company of my friends.
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This is my failure story.
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When I was in college, studying business,
I met a group of indigenous women.
I met a group of indigenous women.
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They lived in a poor rural community
in the state of Puebla, in central Mexico.
in the state of Puebla, in central Mexico.
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They made beautiful handmade products.
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And when I met them and I saw their work,
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I decided I wanted to help.
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With some friends,
I cofounded a social enterprise
I cofounded a social enterprise
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with the mission to help the women
create an income stream
create an income stream
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and improve their quality of life.
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We did everything by the book,
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as we had learned in business school.
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We got investors,
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we spent a lot of time building
the business and training the women.
the business and training the women.
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But soon we realized we were novices.
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The handmade products were not selling,
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and the financial plan we had made
was totally unrealistic.
was totally unrealistic.
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In fact, we worked
for years without a salary,
for years without a salary,
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hoping that a miracle would happen,
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that magically a great buyer would arrive
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and she would make
the business profitable.
the business profitable.
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But that miracle never happened.
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In the end, we had to close the business,
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and that broke my heart.
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I started everything
to create a positive impact
to create a positive impact
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on the life of the artisans.
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And I felt that I have done the opposite.
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I felt so guilty
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that I decided to hide this failure
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from my conversations
and my resume for years.
and my resume for years.
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I didn't know other failed entrepreneurs,
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and I thought I was
the only loser in the world.
the only loser in the world.
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One night, seven years later,
I was out with some friends
I was out with some friends
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and we were talking
about the life of the entrepreneur.
about the life of the entrepreneur.
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And of course,
the issue of failure came out.
the issue of failure came out.
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I decided to confess to my friends
the story of my failed business.
the story of my failed business.
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And they shared similar stories.
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In that moment, a thought
became really clear in my mind:
became really clear in my mind:
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all of my friends were failures.
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(Laughter)
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Being more serious, that night I realized
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that A: I wasn't
the only loser in the world,
the only loser in the world,
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and B: we all have hidden failures.
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Please tell me if that is not true.
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That night was like an exorcism for me.
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I realized that sharing your failures
makes you stronger, not weaker.
makes you stronger, not weaker.
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And being open to my vulnerability
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helped me connect with others
in a deeper and more meaningful way
in a deeper and more meaningful way
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and embrace life lessons
I wouldn't have learned previously.
I wouldn't have learned previously.
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As a consequence of this experience
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of sharing stories
of businesses that didn't work,
of businesses that didn't work,
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we decided to create a platform of events
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to help others
share their failure stories.
share their failure stories.
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And we called it Fuckup Nights.
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Years later, we also created
a research center
a research center
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devoted to the story of failure
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and its implications
on business, people and society
on business, people and society
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and as we love cool names,
we called it the Failure Institute.
we called it the Failure Institute.
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It has been surprising to see
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that when an entrepreneur
stands on a stage
stands on a stage
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and shares a story of failure,
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she can actually enjoy that experience.
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It doesn't have to be a moment
of shame and embarrassment,
of shame and embarrassment,
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as it used to be in the past.
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It is an opportunity
to share lessons learned
to share lessons learned
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and build empathy.
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We have also discovered
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that when the members of a team
share their failures, magic happens.
share their failures, magic happens.
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Bonds grow stronger
and collaboration becomes easier.
and collaboration becomes easier.
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Through our events and research projects,
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we have found some interesting facts.
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For instance, that men and women
react in a different way
react in a different way
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after the failure of a business.
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The most common reaction among men
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is to start a new business
within one year of failure,
within one year of failure,
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but in a different sector,
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while women decide to look for a job
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and postpone the creation
of a new business.
of a new business.
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Our hypothesis is that this happens
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because women tend to suffer more
from the impostor syndrome.
from the impostor syndrome.
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We feel that we need something else
to be a good entrepreneur.
to be a good entrepreneur.
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But I have seen that in many, many cases
women have everything that's needed.
women have everything that's needed.
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We just need to take the step.
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And in the case of men,
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it is more common to see that they feel
they have enough knowledge
they have enough knowledge
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and just need to put it in practice
in another place with better luck.
in another place with better luck.
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Another interesting finding has been
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that there are regional differences
on how entrepreneurs cope with failure.
on how entrepreneurs cope with failure.
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For instance, the most common reaction
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after the failure of a business
in the American continent
in the American continent
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is to go back to school.
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While in Europe, the most common reaction
is to look for a therapist.
is to look for a therapist.
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(Laughter)
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We're not sure which is a better reaction
after the failure of a business,
after the failure of a business,
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but this is something
we will study in the future.
we will study in the future.
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Another interesting finding has been
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the profound impact that public policy
has on failed entrepreneurs.
has on failed entrepreneurs.
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For instance, in my country, in Mexico,
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the regulatory environment is so hard,
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that closing a business can take you
a lot of time and a lot of money.
a lot of time and a lot of money.
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Let's begin with the money.
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In the best possible scenario,
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meaning you don't have
problems with partners,
problems with partners,
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providers, clients, employees,
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in the best possible scenario,
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officially closing a business
will cost you 2,000 dollars.
will cost you 2,000 dollars.
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Which is a lot of money in Mexico.
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Someone who earns the minimum wage
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would have to work for 15 months
to save this amount.
to save this amount.
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Now, let's talk about the time.
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As you may know,
in most of the developing world,
in most of the developing world,
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the average life expectancy
of a business is two years.
of a business is two years.
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In Mexico, the process of officially
closing a business takes two years.
closing a business takes two years.
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What happens when the average
life expectancy of a business
life expectancy of a business
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is so similar to the time it will take you
to close it if it doesn't work?
to close it if it doesn't work?
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Of course, this discourages
business creation
business creation
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and promotes informal economy.
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In fact, econometric research has proved
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that if the process of declaring
bankruptcy takes less time and less money,
bankruptcy takes less time and less money,
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more new firms will enter the market.
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For this reason, in 2017,
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we proposed a series
of public policy recommendations
of public policy recommendations
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for the procedure of officially
closing businesses in Mexico.
closing businesses in Mexico.
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For a whole year,
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we worked with entrepreneurs
from all over the country
from all over the country
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and with Congress.
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And the good news is that we managed
to help change the law.
to help change the law.
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Yay!
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(Applause)
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The idea is that when
the new regulation comes into force,
the new regulation comes into force,
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entrepreneurs will be able to close
their businesses in an online procedure
their businesses in an online procedure
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that is faster and inexpensive.
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(Sighs)
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On the night we invented Fuckup Nights,
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we never imagined that the movement
would grow this big.
would grow this big.
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We are in 80 countries now.
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In that moment, our only intention
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was to put the topic
of failure on the table.
of failure on the table.
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To help our friends see that failure
is something we must talk about.
is something we must talk about.
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It is not a cause of humiliation,
as it used to be in the past,
as it used to be in the past,
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or a cause of celebration,
as some people say.
as some people say.
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In fact, I want to confess something.
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Every time I listen
to Silicon Valley types or students
to Silicon Valley types or students
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bragging about failing fast and often
like it's no big deal, I cringe.
like it's no big deal, I cringe.
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Because I think that there is a dark side
on the mantra "fail fast."
on the mantra "fail fast."
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Of course, failing fast
is a great way to accelerate learning
is a great way to accelerate learning
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and avoid wasting time.
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But I fear that when
we present rapid failure
we present rapid failure
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to entrepreneurs
as their one and only option,
as their one and only option,
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we might be promoting laziness.
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We might be promoting
that entrepreneurs give up too easily.
that entrepreneurs give up too easily.
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I also fear that the culture
of rapid failure
of rapid failure
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could be minimizing
the devastating consequences
the devastating consequences
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of the failure of a business.
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For instance, when
my social enterprise died,
my social enterprise died,
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the worst part was that I had to go back
to the indigenous community
to the indigenous community
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and tell the women
that the business had failed
that the business had failed
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and it was my fault.
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For some people this could be seen
like a great learning opportunity for me,
like a great learning opportunity for me,
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but the truth is that
the closure of this business
the closure of this business
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represented much more than that.
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It meant that the women
would stop receiving an income
would stop receiving an income
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that they really needed.
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For this reason,
I want to propose something.
I want to propose something.
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I want to propose
that just as we put aside the idea
that just as we put aside the idea
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of publicly humiliating
failed entrepreneurs,
failed entrepreneurs,
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we must put aside the idea
that failing fast is always the best.
that failing fast is always the best.
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And I want to propose a new mantra:
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fail mindfully.
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We must remember that businesses
are made of people,
are made of people,
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businesses are not entities
that appear and disappear
that appear and disappear
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magically without consequences.
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When a firm dies,
some people will lose their jobs.
some people will lose their jobs.
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And others will lose their money.
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And in the case
of social and green enterprises,
of social and green enterprises,
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the death of this business
can have a negative impact
can have a negative impact
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on the ecosystems or communities
they were trying to serve.
they were trying to serve.
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But what does it mean to fail mindfully?
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It means being aware of the impact,
of the consequences
of the consequences
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of the failure of that business.
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Being aware of the lessons learned.
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And being aware of the responsibility
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to share those learnings with the world.
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Thank you.
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(Applause)
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ABOUT THE SPEAKER
Leticia Gasca - Author, entrepreneurLeticia Gasca is co-founder of the movement Fuckup Nights and Executive Director for the Failure Institute, the first think tank in the world devoted to studying business failure and the reasons behind it.
Why you should listen
From a very young age, Leticia Gasca was committed to making the world a better place. When she was only 20 years old, she represented Mexico at the United Nations during the 62nd Session of the General Assembly.
In 2014, Gasca was recognized as a Gifted Citizen for leading one of the 30 most innovative projects in the world, and in 2015, she was awarded as Woman Entrepreneur of the Year.
More recently, Gasca was featured by OZY Magazine as a "Rising Star" and by The Economist as one of the "Voices from 2040." She is the author of the book Surviving Failure and a columnist at several newspapers and magazines.
Leticia Gasca | Speaker | TED.com