Failure can be painful but it is part of life and essential for growth. Our attitude to failure holds the key to our success in life and in business. We can either let it define us and keep us from trying again or we can choose to let it empower us and embrace the challenges that come our way. The human mind is powerful and is our greatest asset in life. Our mindset determines how we think and believe. Our beliefs about our abilities and capacity form the basis for how we act and whether we’ll be successful in the long run. The idea of growth mindset encompasses our beliefs about our abilities, our attitude towards learning, our response to failure, and our willingness to take on challenges. Let’s take a look at what it really means to have a growth mindset and why it’s important for entrepreneurs.
What is a growth mindset?
The concept of growth mindset was introduced by Carol Dweck, a Stanford University psychologist, and popularized in her book Mindset: The New Psychology of Success. Over 30 years ago Dweck and colleagues started conducting research on students’ attitude to failure. She had observed that some students found it easier to recover from failure while others were discouraged by obstacles.
In an effort to understand these differences Dweck analyzed the behavior of thousands of school children and coined the terms growth mindset and fixed mindset which describe people’ basic beliefs about their abilities and learning potential. It turned out that students who believed they could learn to do better put in more effort and time and thus showed higher levels of achievement than those who believed their intelligence was limited. Dr. Dweck describes growth mindset as “the tendency to believe that you can grow.”
Growth vs. fixed mindset
So the term growth mindset can describe a person’s underlying belief about their intelligence and attitude towards learning. People with a fixed mindset believe they have a limited potential. They are constrained as a result of their beliefs. They believe that each person is born with certain talents and abilities that are fixed and that these abilities and intelligence cannot be developed with effort and persistence. You either have it or you don’t. So when a person with a fixed mindset is confronted with failure they view it as proof of their limited intelligence and ability which kept them from success. As a result a person with a fixed mindset shies away from challenges which in turn prevents growth. They also give up easily.
On the other hand, a growth mindset empowers people. A person with a growth mindset finds freedom in their beliefs. These people understand that different people have different abilities and intelligence but that it can be developed through effort. This leads them to put in effort and hard work towards achieving their goals. They enjoy learning and seek to find learning experiences. They embrace challenges and view them as opportunities to grow and develop their skills.
Why entrepreneurs need a growth mindset to succeed
It is important for entrepreneurs to learn and develop over time. Most business owners intend to grow their business and continue to achieve more and more. And it follows that if you desire more progress then you’ll need to do something you’ve never done before. If entrepreneurs have a fixed mindset they’ll have trouble learning new skills to achieve their goals. It would also discourage them from taking risks and facing challenges. Entrepreneurs with a growth mindset, on the other hand, are committed to growth and are constantly learning and growing their skills to reach their business goals.
As the business progresses the entrepreneur’s skills and leadership should also advance. Without it the business cannot achieve long term success. The skills and effort needed to run a business when you first start out are not the same as those needed to run a larger company. Leading a small team of say 5 people is different from managing 50 employees or so. This means that entrepreneurs also need to grow and develop their leadership skills.
A business owner’s role in the company also evolves as the business grows. When starting out many entrepreneurs do most of the work themselves. When the business begins to generate more revenue, more employees are hired and the business owner has to learn to manage human resources. Then further business growth necessitates learning to manage systems and processes. As the business continues to grow, the business owner or CEO will need to manage people who manage the company systems and processes. Stepping away from management to guide the long term growth and direction for the company would also require different skills. All these different roles demand different skills and require business owners to deal with different challenges.
For a business to prosper it is essential for the business owner to be flexible and open to learning. Your business is only as strong as your mindset. If the founder does not grow it would naturally reflect in the business.
How to develop a growth mindset
A growth mindset gives us hope and courage to follow our goals and reach for our dreams, it gives us hope and inspires us to create a better future. Carol Dweck explains that it is possible to change our mindset. You can shift from a fixed mindset to a growth mindset with some effort.
Following are some of the ways in which you can nurture a growth mindset for personal and business success.
- Embrace challenges
To adopt a growth mindset it is important to change the way you perceive challenges. People with a growth mindset see challenges as an opportunity to learn and grow. They are not afraid of stepping outside their comfort zone.
Avoiding challenges will stop your growth as an entrepreneur and business will suffer. There is no need to be afraid of challenges. If you beat it you get to win, if you don’t you get to learn so you would do better next time.
- Rethink your relationship with failure
Another essential part of being an entrepreneur with a growth mindset is to learn how to accept failure and be willing to take risks. View failure as part of growth. The fear of failure actually prevents most people from doing their best. Learn to expect setbacks and don’t beat yourself up over your failures. Each time you power through a setback instead of giving up you’ll become stronger and less afraid of failing.
- Accept responsibility
As an entrepreneur you must be willing to accept responsibility. You have to start by being accountable to yourself. Your team will learn from watching you. By showing you value accountability you will be able to make it part of your workplace culture.
- Focus on learning instead of approval
Thinking about what others think of your intellect and abilities is a waste of time and diverts your focus from what’s actually important. To become an entrepreneur with a growth mindset you have to stop caring about seeking other people’s approval. Instead focus on learning and growing for yourself. At the same time try to be inspired from others’ success instead of feeling threatened and keep your focus on your own work.
- Work hard
Putting in effort and hard work is part of the growth mindset. You have to put in 100 percent of your effort in your business to achieve your full potential. Believe that your efforts will bear fruit and keep going. It is also important to celebrate small milestones along the way.
- Listen to criticism and use it to grow
To develop a growth mindset, learn to accept constructive criticism and feedback without getting offended. It is a great way to learn and improve. Encourage customer and employee feedback, ratings, and reviews. You can always use the criticism to improve your products or services.
- Process not outcomes
Entrepreneurs with a growth mindset tend to focus on the process more than the result. Instead of worrying about reaching your desired outcome, concentrate on what you need to do to get there. Learn to enjoy the process and grow along the way.
- Reflect
To cultivate a growth mindset be sure to dedicate some time to reflection. Think about what is working and what isn’t. Find opportunities to grow. Regularly reflecting on your progress can help you see how you can align your actions with your goals, where you need to improve, and what you can learn from your experiences.
Adopting a growth mindset can set entrepreneurs up for long term success. They can develop all the skills needed to grow their business and achieve their goals. Growth oriented entrepreneurs also build a culture where employees are encouraged to embrace a growth mindset by underlining that failures are opportunities for growth. Growth mindset highlights that it is always possible to improve and helps people strive to be the best version of themselves. This means that your business continues to grow and improve.
