This can result in avoiding feedback for fear of rejection, untested products and bad product-market fit, or giving up on a venture altogether.Īn entrepreneur with a growth mindset, on the other hand, receives negative feedback and constructive criticism and uses it to improve their product offering. This continual process of testing an idea, learning from the results, and reiterating the product is only possible with a growth mindset.Īn entrepreneur with a fixed mindset is likely to view negative feedback as a sign they don’t have the ability to make a valuable product. “It’s most productive to think of entrepreneurship as an iterative process-a way of managing that involves continually searching for a winning combination of opportunities and resources,” Sahlman says in Entrepreneurship Essentials. It Enables You to Iterate on Your Product Those with a fixed mindset showed no brain activity when reviewing the mistakes, whereas the brains of those with a growth mindset showed processing activity as mistakes were being reviewed.Ī fixed mindset can physically prevent you from learning from mistakes, while a growth mindset can empower you to perceive mistakes as learning opportunities. In one of Dweck’s studies, her team analyzed students’ brain activity while reviewing mistakes they made on a test. When challenges, setbacks, and failures inevitably arise, your business’s survival depends on your ability to persevere and learn from difficult situations. Resilience-the capacity to recover from and move through difficult situations-is critical in the entrepreneurial world. “You’re investing in your own success.” 2. “You need to find ways to equip yourself with the skills necessary to sustain your business,” Wright says. Rather than let her previous career define her potential, she knew she could learn the language of the startup world through hands-on experience and taking Entrepreneurship Essentials. Superior Court, launched her own public relations and production firm, Artiste House. This can be an asset if you have expertise and experience in another field and want to pursue entrepreneurship.įor example, Indya Wright, former commercial banker and deputy clerk at the Washington, D.C. When you have a growth mindset, your past doesn’t define your future. Here are four ways a growth mindset can serve you as you launch and grow your business. While a growth mindset can benefit anyone, it’s crucial for entrepreneurs. Related: Must-Have Entrepreneurial Skills for Aspiring Business Owners 4 Reasons Entrepreneurs Need a Growth Mindset Given the numerous challenges entrepreneurs face, a growth mindset can be a powerful tool as you work toward your venture’s success. When you have a growth mindset, you believe you can gain the knowledge and skills necessary to succeed, which makes every challenge a learning opportunity.

The concept of growth and fixed mindsets was coined by psychologist Carol Dweck in her 2006 book, Mindset: The New Psychology of Success.Īccording to Dweck, challenging situations can be catastrophic for those with fixed mindsets because of the implication that if they don’t already have the skills or intelligence to complete a task, there’s no chance of improvement. You might think, “I don’t have a background in finance, but I can learn and practice those skills until I feel capable.”

Now imagine you approach the situation with a growth mindset.

If you have a fixed mindset, you may think, “I’ve never been good with math, let alone financial statements. On the other hand, someone with a fixed mindset views those same traits as inherently stable and unchangeable over time.įor example, as an aspiring entrepreneur, you need basic finance skills to create your business’s budget and prepare its financial statements. Someone with a growth mindset views intelligence, abilities, and talents as learnable and capable of improvement through effort. So You Want to Be an Entrepreneur: How to Get StartedĪccess your free e-book today. Here’s a primer on the difference between growth and fixed mindsets, why a growth mindset is essential for entrepreneurship, and how you can achieve and maintain one. This mindset-that ability and intelligence can be achieved through effort-is called a growth mindset, and it’s an invaluable asset in the startup world. Every person can find opportunities, attract necessary resources, and build teams to bring successful products and services to customers.” “Do you have to be young, or technical, or a college dropout, or risk-seeking to become an entrepreneur? I don’t think so. “Do you have to be a creative genius to succeed?” asks Harvard Business School Professor William Sahlman in the online course Entrepreneurship Essentials.

In reality, entrepreneurial skills can be learned and strengthened like any other skill. One common misconception in entrepreneurship is that you either have what it takes to be an entrepreneur or you don’t.

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