Is it? Maybe it's good if the decision to abandon ship is distributed over more people? It hinges on one thing that I don't know: How likely are already failin

Is it? Maybe it's good if the decision to abandon ship is distributed over more people? It hinges on one thing that I don't know: How likely are already failing companies to recover? Probably with the added condition that incoming help is not foreseeable, because if it's failing but people know help is coming that takes away some of the negative signaling. I suspect that most of the times struggling companies won't get better, or at beast will continue to struggle and never make it big. If that is the case, it will be better for both parties, not just the employees but also for the founders, if the life of this failed attempt of a business is cut short. I know first hand that when you are heavily invested pulling the plug yourself is really hard. I have no data, but I would not be surprised if the problem of staying too long - for founders too - is larger than the opposite, pulling the plug too early. Not that the latter is easy to show, since even if you get a large sample, you will never know for certain for many of the data points what would have happened if the plug had not been pulled without parallel mirror universes.