Why firms fail

Abstract “To avoid all mistakes in the conduct of a great enterprise is beyond man's powers,” said Minicius to his soldiers after his defeat by Hannibal in 209 B.C. “But,” he continued, “when a mistake has once been made, to use his reverses as lessons for the future is the part of a brave and sensible man.” Founders of some high-technology firms in California's Silicon Valley were asked the reasons that their companies failed. Their answers can help others avoid their fate.