I think the source of the author's confusion is the mixed bag that comes along with desperation. On one hand desperation can incentivise you to act and spur you to try things you probably wouldn't have, but which may turn out brilliantly. On the other hand I think it can pressure you to the point of making unwise decisions or possibly folding altogether. I don't think it's desperation which helps as much as it is taking risks or doing something to change your situation, but one doesn't need to be desperate for that. As far as the success of Richard Branson's ventures it reminds me of Donald Trump saying he always found it easier to raise money for larger more ambitious projects than smaller ones, so there may again be some correlation favoring higher risk taking - at least if you have nothing really to lose. I would never advise over extending or self-inflicted monetary desperation.