Insider’s story: Why Ego Is the Fastest Way to Kill a Startup

Dh Foods’ founder reveals how listening to criticism—not defending your ideas—can determine whether a startup joins the 5% that survive.

MARKET INSIDER – In the startup world, product quality alone is rarely enough. The difference between companies that scale and those that disappear often comes down to a founder’s ability to accept criticism. For entrepreneurs chasing growth in increasingly competitive global markets, ego can become a hidden liability—blinding them to customer needs, market shifts, and opportunities for improvement.

The lesson comes from Vietnam-based food brand Dh Foods, whose products were repeatedly criticized by buyers, distributors, and industry experts before the company found success. Rather than viewing negative feedback as an attack, founder Nguyễn Trung Dũng says those moments became some of the company’s most valuable business intelligence. In a startup ecosystem where only a small fraction of companies survive long term, the ability to listen may be one of the most underrated competitive advantages.

Over the years, Dh Foods participated in numerous international trade fairs and exhibitions, where foreign buyers from demanding markets such as Europe and the United States often provided blunt assessments of the company’s products. Those conversations revealed insights that small businesses rarely have access to. Buyers managing thousands of products could quickly identify weaknesses in packaging, product range, positioning, and consumer appeal—knowledge that often takes startups years and significant capital to discover on their own.

Some of that feedback directly reshaped the company’s strategy. Buyers pointed out that Dh Foods offered too few product variations, prompting the company to expand its portfolio of Tây Ninh-style seasoning salts. Others noted that its packaging was oversized for everyday consumers, leading to a complete redesign with smaller, more ergonomic containers. As global demand shifted toward clean-label food products, feedback about natural ingredients encouraged the company to develop a dedicated “Natural” product line, aligning with emerging consumer trends.

Yet the founder also admits that ignoring criticism came at a cost. In 2017, industry buyers warned that Dh Foods’ instant noodle cup products lacked meaningful differentiation in a market dominated by multinational giants. The company persisted despite the warnings and only discontinued the line in early 2018 after prolonged underperformance. Looking back, Dũng says acting sooner would have saved substantial resources and accelerated growth elsewhere.

That experience reinforced another principle familiar to successful companies worldwide: once the need for change becomes clear, execution speed matters. Many businesses delay strategic pivots because of sunk costs tied to packaging, inventory, or marketing materials. But in fast-moving consumer markets, hesitation can be more expensive than the write-offs themselves. By the time improvements reach the market, customers may have already switched to competitors.

The broader lesson extends far beyond Vietnam’s startup scene. Whether in Silicon Valley, Singapore, Berlin, or Ho Chi Minh City, founders often fall in love with their own products while overlooking the market signals that matter most. The companies that endure are rarely those that insist they are right—they are the ones that learn faster than everyone else. In an era where customer preferences evolve at unprecedented speed, perhaps the most valuable startup skill is not innovation, but humility.