“Success is not necessarily about connections, or cutting corners, or chamba -- the three Cs of bad business. Call it trite but believe me, success can be achieved through hard work, frugality, integrity, responsiveness to change, and most of all, boldness to dream.”
— John Gokongwei Jr., JG Summit founder
A Founder’s Adversity Quotient (FAQ) refers to the resilience, adaptability, and ability to thrive in the face of mounting challenges and uncertainties that business founders typically possess. It is a measure of their capacity to overcome setbacks, take calculated risks, and persevere in pursuit of their entrepreneurial vision.
Founders often start their businesses from scratch, facing enormous financial risks, limited resources, and market uncertainties. Armed with nothing but grit, they experience firsthand the struggles and setbacks that come with creating something from nothing. This process builds their AQ as they learn to cope with failure after failure, pivot their strategies, and find innovative solutions to navigate the complexities of keeping the business afloat. The emotional attachment founders develop to their businesses further contributes to their high AQ. Having founded their businesses, they are driven by more than just financial success. Their businesses become a reflection of their identity. To quote psychologist Harry Levinson, “An entrepreneur’s business is simultaneously his ‘baby’ and his ‘mistress.’ For the founder, the business is essentially an extension of himself, a medium for his personal gratification and achievement above all.” This deep emotional investment fuels their determination to overcome challenges and turn setbacks into opportunities for growth.
As founders build their businesses, they acquire diverse skill sets, ranging from leadership and creative problem-solving to risk management and adaptability. The entrepreneurial journey exposes them to a wide range of experiences, honing their decision-making abilities and fostering a growth mindset. That is why founders have a higher AQ compared to their offspring.
Founder starting from scratch
The phrase “starting from scratch” captures the essence of a founder’s journey in establishing a business from the ground up. They are entrepreneurs who have the vision, determination, and passion to turn an idea into a thriving venture. In the early stages, they embark on a challenging and unpredictable path, encountering numerous obstacles and uncertainties that test their resolve. At the inception of a business, founders face financial constraints and limited resources. They often invest their personal savings, seek funding from family and friends, or take out loans to fund the venture. These financial risks can be daunting, as the outcome is far from certain. Moreover, they also encounter skepticism and doubt from others, adding to the pressure of proving the concept’s viability.
As the business takes shape, founders navigate a highly competitive market, requiring constant adaptation to changing industry landscapes. They deal with early failures and setbacks, learning from mistakes and using them as stepping stones for improvement. This resilience in the face of adversity is a hallmark of successful founders. The journey is a transformative process that shapes their character and leadership style. It also fosters humility as they learn to seek advice, collaborate with others, and acknowledge that they cannot do it all alone. Overall, the FAQ builds tenacity as founders persistently pursue their vision, even in the face of skepticism or rejection.
Now that the founder is nearing the twilight of his life, does the next generation members have the same level of adversity quotient?
Find out on Saturday, Aug. 19, 2023, at the Crowne Plaza Manila Galleria as fellow family business expert Dr. Josh Baron, a best-selling author and Harvard Business School senior lecturer, along with myself and next-generation leaders Alliance Global chief executive officer (CEO) Kevin Tan and JG Summit president and CEO Lance Gokongwei come together on the stage of “Family Business Continuity: Ensuring a Fail-Proof Succession Plan” to come face to face with business owners from diverse industries to dissect the dos and don’ts of ensuring business continuity while preserving the family’s legacy.
This Saturday event promises to be an engaging and enlightening session that will delve into the challenges and strategies for maintaining a successful business across generations. For additional information, please contact Marivi Estrada of ICON Executive Asia at 0977-835-5533.