Entrepreneurship is a term that has been around for centuries, but the psychology of entrepreneurship has only recently started to gain widespread recognition. I did a 3-hour class on the subject in my inaugural Masterclass series in 2018. In the class, we learned about the mindset and behaviors of individuals who start and grow businesses while taking on significant mental, emotional, and financial risks to pursue their vision. The class also discussed the way that we make the choices that decide the future and the impact on the legacies attached to your decision.
Entrepreneurship is a journey of self-discovery, risk-taking, and perseverance. It involves creating something from scratch, turning an idea into a tangible product or service, and building a sustainable business. It involves eliminating procrastination and focusing on self-development, time management, and more. While entrepreneurship can be highly rewarding, it can also be challenging and requires a certain mental fortitude. In this blog post, we will explore the psychology of entrepreneurship and the differences between the entrepreneur and employee mindset.
Entrepreneur Mindset:
The entrepreneur mindset is characterized by several key traits. Firstly, entrepreneurs are highly self-motivated and passionate about their work. They are driven by a sense of purpose and a desire to make a difference. Secondly, entrepreneurs are risk-takers. They are not afraid to take chances and are willing to fail in order to learn and grow. Thirdly, entrepreneurs can be highly creative and innovative. They should constantly think of new ideas and ways to improve their product or service. Fourthly, entrepreneurs must be resilient. You will have to be able to bounce back from setbacks and failures and be willing to put in the hard work required to achieve your goals.
Employee Mindset:
The employee mindset, on the other hand, is characterized by a different set of traits. Firstly, employees are typically motivated by external factors such as salary, benefits, and job security. They may not be as passionate about their work as entrepreneurs, but they are still committed to doing a good job. Secondly, employees are risk-averse. They are not willing to take big risks or make major decisions without the approval of their superiors. Thirdly, employees may be as creative or innovative as entrepreneurs, but they are often willing to work within the constraints of an existing system or process. Fourthly, employees may not be as resilient as entrepreneurs. Job security can create complacency that limits personal growth.
Differences between the Entrepreneur and Employee Mindset:
- Motivation: Entrepreneurs are driven by a sense of purpose and passion for their work, while employees are motivated by external factors such as salary, benefits, and job security.
- Risk-taking: Entrepreneurs are willing to take big risks and make major decisions without the approval of others, while employees are risk-averse and may not be comfortable taking big risks.
- Creativity and innovation: Entrepreneurs are highly creative and innovative, constantly thinking of new ideas and ways to improve their product or service, while employees may be working within the constraints of an existing system or process.
- Resilience: Entrepreneurs are highly resilient and able to bounce back from setbacks and failures, while employees may struggle to cope with setbacks and failures.
Entrepreneurship requires a unique set of skills and traits that are different from those required for traditional employment. Self-awareness of where you fall on that scale is critical to your success. Only then can you make the adjustment with strategic ease, rather than from the pain of bitter experiences. While entrepreneurs and employees are essential to the success of any business, understanding the differences between the two mindsets can help aspiring entrepreneurs develop the skills they need to succeed.
The best entrepreneur is a diligent employee who is disciplined and committed to the tasks and vision of the greater company. He takes that and applies it evenly to his/herself, for his/herself. If you worked 8 hours a day for Apple, can you work 8-12 undistracted hours a day for yourself and your family?
By cultivating a strong sense of purpose, taking calculated risks, fostering creativity and innovation, and building resilience, entrepreneurs can overcome challenges and build successful businesses that make a difference in the world.