Page 16 - April 2024 INSIGHT MAGAZINE.indd

BUSINESS TIPS

5 ways entrepreneurs can become

more psychologically resilient

By The Conversation –
By Kyle Brykman, Assistant Professor of Management, University of Windsor & Alex Newman, Associate Dean, Faculty of Business and Law, Deakin
University & Julia Backmann, Assistant Professor, UCD School of Business, University College Dublin & Robert J. Pidduck, Assistant Professor,
Entrepreneurship & International Management, Old Dominion University & Silja Hartmann, Postdoctoral Research and Teaching Fellow, Department of
Management, Freie Universitat Berlin
Entrepreneurship is the backbone of
any free-market economy. Globally,
small and medium-sized businesses
represent roughly 90% of businesses
and employ over 50% of the workforce.
They also contribute about 45% to gross
domestic product (GDP).
Yet entrepreneurs face many obstacles that
threaten their survival, including financial

insecurity and market uncertainties.
Unsurprisingly, roughly 50% of new

ventures fail within the first five years.
In this challenging landscape,
entrepreneurs’ psychological
resilience is a key personal resource
and competitive advantage.
But how can entrepreneurs
develop resilience? And why does • Personality: Believing in your abilities • Social networks: Having strong sources

psychological resilience benefit and having a strong sense of control of social support, whether through
entrepreneurs? over life events, being “gritty” and business networks, formal mentorship
passionate about your business. programs or feedback from potential
• Attitudes and behaviours: Positive investors.
Entrepreneurs’ psychological mindsets, meaning, preparedness and What makes resilient

resilience reflection ater experiencing setbacks entrepreneurs unique?
entrepreneurs’
further
enhances
Psychological resilience is made up of resilience. Being resilient might be a prerequisite
two defining elements. First, someone for having an entrepreneurial mindset.

must experience adversity, which • Learning: Participating in Several studies show that resilient people
threatens their performance or well- entrepreneurial education programs, are more likely to launch new ventures,
being. Ater experiencing this adversity, a like university business courses, and take over existing businesses and pivot
person’s recovery to their initial level of learning how other entrepreneurs their business during a crisis like the
performance or well-being is known as successfully cope with adversity and COVID-19 pandemic.
positive adaptation. This ability to bounce learning from their struggles and
back ater facing an obstacle is resilience. failures can help entrepreneurs learn Psychological resilience is also
how to bounce back from adversity.
To understand how entrepreneurs can associated with a host of important
outcomes,
entrepreneurial
including
become more psychologically resilient, • Personal experiences: Resilience also success. Resilient entrepreneurs tend to
we conducted a comprehensive review of develops from personal experiences, exhibit stronger mental well-being, as
existing academic literature by synthesizing like overcoming the initial challenges psychological resilience helps bu†er the

results from over 80 published articles. We of starting a business. In addition, everyday stressors of entrepreneurship.

identified the following factors as essential early childhood experiences can be
to building entrepreneurs’ psychological instrumental, like when parents focus Resilient entrepreneurs also tend to learn,
resilience. on learning opportunities and allow innovate, exhibit more transformational
their children to overcome their own leadership and are happier than those
challenges. without psychological resilience.
16 Spring 2024 www.cambridgechamber.com