Failure is still treated like a dirty word in entrepreneurship. Wins are amplified, losses are quietly buried and success is framed as something linear and controllable. But for entrepreneur and investor Matt Haycox, that story does more harm than good.

Haycox’s view is shaped by lived experience. Across more than two decades in business, he has built, scaled and lost companies in public view, navigating bankruptcies, legal pressure and rebuilds along the way. Rather than distancing himself from those moments, he argues they are central to understanding what entrepreneurship actually demands.

‘If you’ve never failed, you’ve probably never put yourself properly on the line,’ Haycox says. ‘Failure isn’t a flaw. It’s part of the job description.’

Why business failure is judged differently

In most areas of life, failure is treated as temporary. Exams can be retaken. Careers can pivot. Even personal setbacks are often framed as growth experiences. Business, Haycox believes, is judged by a harsher standard.

‘When a business collapses, people treat it like a moral failure,’ he says. ‘As if the person behind it is broken.’

That judgement ignores the reality of entrepreneurship. Building a business means making decisions with incomplete information, taking financial risk and being accountable for outcomes that are not fully controllable.

Research from the World Economic Forum has highlighted that entrepreneurial ecosystems with low tolerance for failure tend to discourage innovation and risk-taking. Where failure is stigmatised, founders delay decisions, hide problems and avoid bold moves.

‘If the penalty for failure is permanent,’ Haycox says, ‘people stop telling the truth.’

What failure actually removes

Haycox is clear that failure does not magically improve judgement. What it does is strip away the illusion.

‘Failure kills ego very quickly,’ he says. ‘You stop believing the story you tell yourself.’

After a collapse, priorities shift. Growth loses its shine if it comes without control. Revenue matters less than margin. Cashflow becomes something felt daily, not reviewed monthly.

A global study by the OECD into SME performance found that founders with prior business failures were more likely to implement tighter financial controls and stress-test assumptions in later ventures. Experience earned under pressure often translates into discipline.

‘You stop romanticising business,’ Haycox explains. ‘You start respecting it.’

Collapse versus defeat

One of the distinctions Haycox returns to often is the difference between failure and finality.

‘A business collapsing is an event,’ he says. ‘Defeat is a choice.’

He has watched founders respond to failure in very different ways. Some become defensive, blaming timing, partners or markets, only to repeat the same mistakes. Others take responsibility, reassess their assumptions and return with sharper judgement.

‘The second group is dangerous in the best way,’ Haycox says. ‘They’ve already lived through the worst-case scenario.’

That perspective shapes how he now evaluates people. A spotless track record does not always inspire confidence. Experience earned under pressure often counts for more than uninterrupted success.

Why avoiding failure weakens businesses

Haycox believes the cultural fear of failure creates fragile companies. Founders hide problems, delay difficult conversations and protect appearances instead of confronting reality.

‘If you can’t admit something’s wrong, you can’t fix it,’ he says.

Data from PwC’s Global Crisis Survey has shown that organisations which identify and address problems early recover faster and suffer less long-term damage than those that delay action. The same principle applies to small businesses.

‘Failure handled early is manageable,’ Haycox says. ‘Failure ignored becomes lethal.’

In environments where second chances are rare, leaders are incentivised to maintain the illusion of control. The result is slower reactions and larger collapses when issues eventually surface.

Separating identity from outcome

One of the most damaging aspects of failure, Haycox argues, is how closely founders tie their identity to their business.

‘When the company goes down, they feel like they’ve gone down with it,’ he says.

That emotional entanglement clouds judgement. Decisions become defensive. Risk is either avoided entirely or taken recklessly in an attempt to recover status.

Haycox learned, over time, to separate who he is from what he builds. ‘I am not my balance sheet,’ he says. ‘Once you understand that, you make better decisions.’

This mindset is something he frequently discusses in his long-form conversations, where themes of responsibility, resilience and rebuilding recur across industries and backgrounds.

Failure as a filter, not a verdict

Rather than seeing failure as disqualifying, Haycox views it as a filter. It reveals how individuals respond when momentum disappears.

‘Anyone can look capable when things are going well,’ he says. ‘Pressure shows you what’s underneath.’

That belief informs how he approaches business and media. He is less interested in flawless narratives and more focused on how people behave when certainty vanishes.

It is also why his commentary resonates with founders who feel alienated by constant success stories. Hearing failure discussed openly creates space for more honest conversations about risk and recovery.

A different message for entrepreneurs

Haycox is careful not to glorify struggle. His argument is not that failure should be chased, but that it should be expected.

‘The goal isn’t to fail,’ he says. ‘The goal is to build something real, knowing failure is possible.’

As markets tighten and competition intensifies, he believes this mindset will become even more important. Businesses built on denial are brittle. Those built with an acceptance of risk are more resilient.

That perspective runs through Haycox’s wider work, where he continues to challenge polished success narratives and focus on the realities founders actually face. More of his writing, interviews and long-form commentary can be found on his official website. 

For entrepreneurs willing to confront the truth, his message is direct. Failure does not disqualify you. It tests you.

‘If you survive it and learn,’ Haycox says, ‘you don’t come back weaker. You come back informed.’

In entrepreneurship, that may be the most valuable edge of all.