The Psychology of Entrepreneurship


Current research has defied expectations when it comes to just how the entrepreneurial mind works. Studies have shown that entrepreneurs think differently than those who work for corporate employers. Researchers have found that the entrepreneurial mind is more money conscious and better at maintaining partnerships. Furthermore, they are less tolerant of taking risks. Who knew? Entrepreneurs are far more likely to use heuristics in the ways they perceive the world around them. Heuristics are non-scientific techniques for problem solving based on experience. In other words, entrepreneurs look at the world through lenses that constantly view and solve problems that no one else even notices.

A simple trip to the grocery store can launch a mental fleet of “better ways” to get things done. While your average Joe is combing the isles for the best prices, an entrepreneur is noticing how the current arrangement of shelves does not easily allow for products to be restocked and rotated. The next thing that sets the entrepreneur apart from the general population is what they do with the ideas they have. The popular TV show “Shark Tank” shows the determination of real-life entrepreneurs who are trying to parlay their ideas into money making ventures. “Shark Tank” is a great example of this phase of conceptualization. The entrepreneur is always focused on the question, “now what?” while normal people would just leave their idea behind in the grocery isle.

Finally, researchers have found commonalities among the ways in which entrepreneurs overcome failures. Firstly, entrepreneurs see failure as a part of the process. This isn’t the same as expecting failure. It’s more like buying a new houseplant and discovering an earth worm in the soil. It’s not supposed to be there, but, then again, it is. Entrepreneurs go back to the drawing board in an endless pursuit of perfection. They know that failure is relative. Lastly, entrepreneurs have a strong knack for finding the right people to help them overcome failure. The greatest entrepreneurs focus on their strengths and align with people who can supplement the knowledge or experience they lack. Remember, finding and maintaining alliances is one of the core strengths at play in the entrepreneurial mind.  As a baby entrepreneurial chick just hatching onto the playing field, what can be gained by understanding how this type of mind works? The answer is: do what already comes naturally and do it well.