Many business owners and directors who have experienced past success, or worse, who have inherited success, fall into the trap of overestimating their abilities. They assume they are destined to remain successful because they once built something great.
When their businesses enter distress, they resist admitting fault, blaming external factors, unfair competition, or bad luck instead of recognising their own strategic missteps.
The Matthew Effect suggests that those who have will continue accumulating, while those with less will keep falling behind – "the rich get richer, and the poor get poorer."
But success is not self-perpetuating cycle based on initial advantage. No one is entitled to success based on what they have already accomplished; success is earned and sustained through continuous effort, adaptability, and self-awareness.
This is where George Soros’ Reflexivity Theory challenges the Matthew Effect. The theory proposes that success and failure are not linear; they are self-reinforcing cycles influenced by perception and action. Those who work hard, make smart decisions, and adapt will continue to thrive. Those who rely on past victories without evolving will eventually lose their grip on success.
Success is not inherited, it is not a given, it is not lasting. Success in business is the responsibility of each director to actively create and maintain.