In the fast-paced world of entrepreneurship, the concept of pivoting has become a common buzzword. While it typically refers to a venture changing direction to pursue a new opportunity, a recent study led by Jon Carr, Jenkins Distinguished Professor of Entrepreneurship, sheds light on a lesser-known phenomenon: the survival pivot. This type of pivot occurs when a firm is faced with threats that jeopardize its existence, prompting a rapid reorientation to stay afloat.
Survival pivots, as Carr and his co-authors discovered, often happen swiftly and involve a more extensive overhaul of the firm’s business model compared to opportunity pivots. These pivots are triggered by a critical event or realization that the current path is unsustainable, forcing entrepreneurs to make drastic changes to ensure survival.
Carr’s interest in pivots stems from personal experience. He recalls a time when his own venture was on the brink of failure, prompting a necessary shift in the business model to keep the company afloat. This firsthand experience fuels his research and drives his exploration of the dynamics behind survival pivots.
One of the key findings of Carr’s study is the importance of recognizing the need for a pivot early on. Many entrepreneurs become so enamored with their original idea that they fail to see the warning signs of impending failure. It is this recognition, according to Carr, that serves as the crucial first step towards executing a successful survival pivot.
Despite the prevalence of survival pivots in the entrepreneurial landscape, they have received less scholarly attention compared to opportunity pivots. Carr attributes this gap in research to the relatively new focus on pivoting within the academic community. However, he believes that shedding light on the importance of survival pivots can provide valuable insights for both practitioners and educators in the field of entrepreneurship.
Looking ahead, Carr and his team are interested in exploring the concept of venture failure and identifying the point of no return, where even a pivot may not be enough to save a failing venture. By delving deeper into this area of research, they hope to provide valuable lessons that can inform both future entrepreneurs and current students studying entrepreneurship.
The significance of having their research published in a prestigious journal like the Financial Times 50 is not lost on Carr. He sees it as an opportunity to share valuable insights that can drive real-world practices and enhance the education of aspiring entrepreneurs at NC State University.
In conclusion, the study of survival pivots offers a unique perspective on the challenges faced by entrepreneurs in the ever-changing business landscape. By understanding the dynamics of pivoting, entrepreneurs can better navigate the uncertainties of the entrepreneurial journey and increase their chances of success in the face of adversity.
