It might seem intuitive to assume that entrepreneurs have a growth mindset inbuilt within them as they’re not only aiming to change the world in some small way, but also have to rapidly adapt to the changing circumstances they encounter. Nonetheless, a study from Brigham Young University highlights the value a growth mindset can have for entrepreneurs in developing nations.
The researchers assessed the efficacy of the Tanzania Social Action Fund (TASAF), which aims to train people in entrepreneurship in the hope that it will help lift them out of poverty.
Effective intervention
The researchers initially thought that the training was not well suited for the participants and their context, but after speaking to participants it emerged that it was less a lack of knowledge that was holding back people but rather the confidence and mindset to put their knowledge into action.
“A lot of the entrepreneurs were saying they didn’t believe in themselves and they didn’t think they had the ability to be successful,” the researchers say. “They would tell us, ‘If God wanted me to be rich, then I would be rich.’ Or ‘my neighbor is smarter than me and I’m sure that they can do this, but my family has always done things this way and that is what I am destined to do.'”
Indeed, the interviews revealed that those who were ultimately successful attributed their success in part to a growth-oriented mindset. This encouraged the researchers to conduct further experiments to specifically test whether the introduction of growth mindset training would provide better results.
“It’s about helping people understand that they have the ability to do hard things, overcome challenges, and learn from those challenges,” the authors explain. “This helps them accomplish their goals through trial and error.”
Improved chances
The results showed that the growth mindset training significantly boosted the confidence of participants, which in turn increased the likelihood of success with their business.
A big part of this was that it helped the entrepreneurs overcome what is known as the scarcity mindset, which prompts us to focus on the things we lack rather than the things we have. This can be particularly problematic in developing countries, where shortages are all too evident. It’s also common among people exposed to poverty as there is often precious little mental energy to look beyond the immediate term.
As such, the researchers believe that changing this mindset is a crucial first step if participants were to be successful entrepreneurs as this allows them to look at risk as an opportunity rather than a threat.
