Page 16 - INSIGHT MAGAZINE - NoBleed_Neat

BUSINESS TIPS

5 ways entrepreneurs can become

more psychologically resilient

By The Conversation –
Kyle Brykman, University of Windsor; Alex Newman, Faculty of Business and Law, Deakin University; Julia Backmann, UCD School of Business, University
College Dublin; Robert J. Pidduck, Entrepreneurship & International Management, Old Dominion University; Silja Hartmann, Freie Universitat Berlin
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 per cent of the workforce. They also
contribute about 45 per cent to gross
domestic product (GDP).
Yet entrepreneurs face many obstacles
that threaten their survival, including
financial insecurity and market
uncertainties. Unsurprisingly, roughly 50
per cent of new ventures fail within the
first five years. • Personality: Believing in your abilities
In this challenging landscape, and having a strong sense of control What makes resilient
entrepreneurs’ psychological resilience over life events, being “gritty” and entrepreneurs unique?
is a key personal resource and passionate about your business. Being resilient might be a prerequisite
competitive advantage. But how can • Attitudes and behaviours: Positive for having an entrepreneurial
entrepreneurs develop resilience? And mindset. Several studies show that
why does psychological resilience benefit mindsets, meaning, preparedness and resilient people are more likely
reflection after experiencing setbacks
entrepreneurs? further enhances entrepreneurs’ to launch new ventures, take over
Entrepreneurs’ psychological resilience. existing businesses and pivot their
business during a crisis like the
resilience • Learning: Participating in COVID-19 pandemic.
Psychological resilience is made up of entrepreneurial education programs, Psychological resilience is also
like university business courses, and
two defining elements. First, someone learning how other entrepreneurs associated with a host of important
must experience adversity, which successfully cope with adversity and outcomes, including entrepreneurial
threatens their performance or well- learning from their struggles and success. Resilient entrepreneurs
being. After experiencing this adversity, failures can help entrepreneurs learn tend to exhibit stronger mental well-
a person’s recovery to their initial level how to bounce back from adversity. being, as psychological resilience
of performance or well-being is known helps buffer the everyday stressors
as positive adaptation. This ability to • Personal experiences: Resilience also of entrepreneurship.
bounce back after facing an obstacle is develops from personal experiences,
resilience. like overcoming the initial challenges Resilient entrepreneurs also tend
to learn, innovate, exhibit more
To understand how entrepreneurs can of starting a business. In addition, transformational leadership and
early childhood experiences can be
become more psychologically resilient, instrumental, like when parents focus are happier than those without
we conducted a comprehensive on learning opportunities and allow psychological resilience.
review of existing academic literature their children to overcome their own
by synthesizing results from over 80 challenges. Resilience is also associated
published articles. We identified the with objective and subjective
following factors as essential to building • Social networks: Having strong sources assessments of firm performance.
entrepreneurs’ psychological resilience. of social support, whether through
business networks, formal mentorship
programs or feedback from potential
investors.

16 Fall 2023 www.cambridgechamber.com