The idea that failure brings rewards has become so venerated by business thinkers that you might think yourself lacking if you haven't suffered at least one calamitous disaster in your career.
New research, reported in FORTUNE.COM by Jennifer Alsever, shows an unexpected reward. For those who tried to start a business, finance professor Gustavo Manso of the University of California, Berkeley, says self-employment may pay off in higher wages when the person returns to work at another company.
Using U.S. Bureau of Labor Statistics, Manso examined more than 5,000 people. Statistics show that entrepreneurs make less than they could earn at a bigger company. After two years on their own, they go back to salaried jobs where they earn more than before.
Companies believe they'll get more bang for their buck because of experience gained. Returning people had skills gained from handling multiple problems, moving fast, and getting things done with limited resources.
John Reed, director at IT staffing firm Robert Half Technology, says big companies need that way of thinking.
It turns out that the sleepless nights about meeting payroll, long hours building software and doing customer research were valuable.