5 Ways Entrepreneurs Can Become More Psychologically Resilient
August 10, 2022
By Kyle Brykman, Alex Newman, et al.
Entrepreneurship is the backbone of any free-market economy. Globally, small, and medium-sized businesses represent roughly 90 per cent of businesses and employ over 50 percent of the workforce.
Yet entrepreneurs face many obstacles that threaten their survival, including financial insecurity and market uncertainties.
In this challenging landscape, entrepreneurs’ psychological resilience is a key personal resource and competitive advantage. But how can entrepreneurs develop resilience? And why does psychological resilience benefit entrepreneurs?
Being resilient might be a prerequisite for having an entrepreneurial mindset. Several studies show that resilient people are more likely to launch new ventures, take over existing businesses and pivot their business during a crisis like the COVID-19 pandemic.
Psychological resilience is also associated with a host of important outcomes, including entrepreneurial success. Resilient entrepreneurs tend to exhibit stronger mental well-being, as psychological resilience helps buffer the everyday stressors of entrepreneurship.
Resilient entrepreneurs also tend to learn, innovate, exhibit more transformational leadership and are happier than those without psychological resilience.
Here are five ways to develop personal resilience so that you can triumph over the next obstacle you face.
1. Cultivate a growth- or learning-orientated mindset. Prioritize learning over short-term performance, seek out challenges, embrace failures and experiment with ideas, even if you don’t achieve immediate success.
2. Proactively learn from others. Seek out formal mentors who can offer advice and knowledge about how to overcome entrepreneur-specific challenges. Invest time in reading about how other entrepreneurs overcame adversity while launching and accelerating a business.
3. Develop strong social support networks. Social support is critical to overcoming adversity, whether it comes from family, friends, colleagues, or mentors.
4. Focus on your core strengths and capabilities to achieve success. Believe in your ability to manage the unexpected. Dive in passionately to what you are building. Passion is the fuel that keeps entrepreneurs motivated and committed to learning, despite obstacles.
5. Participate in local entrepreneurship programs. By engaging with local programs, entrepreneurs can find and use essential resources, including specific knowledge and industry connections, to help them bounce back when adversity strikes (or even proactively anticipate challenges).
Like building muscles, building psychological resilience takes time, effort, and the right technique. By investing in learning, believing in your capabilities and vision, using failure as fuel for growth and leaning on social support, anyone can become a psychologically resilient entrepreneur.