The Role of Luck in Entrepreneurship: More Than Just Skill and Planning

In today’s society, the prevailing belief regarding successful entrepreneurship revolves around skill, diligence, and meticulous planning. Nonetheless, the often overlooked role of luck is also significant. A prime example of this can be seen in the success story of Amina, a prosperous entrepreneur in the organic food manufacturing industry.

Amina’s path to establishing her locally sourced snack business was laden with challenges. She faced climate variability, resulting in irregular rainfall, crop shortages, and increased raw material prices. Despite these obstacles, unforeseen opportunities arose with shifts in consumer preferences towards organic, healthy snacks. Amina’s adeptness in navigating these inherent variances, market trends, regulatory changes, and geopolitical events ultimately led to her success.

Luck plays a crucial role in entrepreneurship, often manifesting as a groundbreaking idea at the opportune moment or a fortuitous encounter with a key mentor. These strokes of luck can significantly impact an entrepreneur’s journey, underscoring the importance of acknowledging variance and unpredictability in outcomes.

A 2015 study by Smith and Sims highlighted the substantial role of luck in the success of high-achieving individuals. Additionally, Robert K Merton’s concept of the “Matthew Effect” underscores how individuals with initial advantages tend to accumulate more advantages, while those with disadvantages face increasing challenges.

It is imperative to broaden our understanding of entrepreneurial success beyond individual traits and abilities. By considering cultural, societal, and historical factors that contribute to an individual’s achievements, we can develop frameworks addressing the challenges faced by entrepreneurs. By acknowledging the significance of luck and variance, entrepreneurs can turn their original ideas into viable businesses.

In conclusion, the success of entrepreneurship cannot be solely attributed to individual merit. Recognizing the role of luck and understanding the broader context in which entrepreneurial journeys unfold is essential. This understanding will pave the way for more comprehensive and effective support for entrepreneurs in the ever-evolving landscape of technological advancements.

Written by Edwin Obonyo, a PhD student at Strathmore University Business School.