Negative Personalities Can Help Entrepreneurs (To A Point)

Entrepreneurs are often portrayed as bending the world through sheer force of will. While such personalities can be beneficial, they also have a dark side, with the likes of Elizabeth Holmes demonstrating how it can lead entrepreneurs astray.

Research from USC recently focused on three particular negative personality traits – Machiavellianism, narcissism, and psychopathy – to understand their role in entrepreneurship.

The right blend

The study found that founders with a moderate level of Machiavellianism and psychopathy actually encouraged knowledge-sharing and supported their team as they were better able to manage any conflicts between team members. It’s only when these dark traits reach extreme levels that problems emerge.

So, think of the impact of Machiavellianism (doing whatever it takes to succeed and looking good doing it) and psychopathy (not really getting how others feel) on a company’s success like a curve that looks like a bell.

When these traits are in the middle, they actually help the team do better. But if the folks in charge have way too much of these traits, there’s a point where it starts hurting how well a new business does.

In simple terms, having some Machiavellian and psychopathic tendencies can make a team and a business more successful in the entrepreneurial world. For example, if you’re a bit psychopathic, you might not get bothered by your team’s emotions, and that can help you keep moving forward without getting stressed out by what others are feeling.

A different matter

Interestingly, narcissism doesn’t seem to follow the same pattern, as it was instead found to have universally positive effects on the performance of the startup, even when narcissism was extremely high.

“Even extremely narcissistic founders still managed to engage with their new venture teams in a way that minimized interpersonal conflict and encouraged innovation,” the researchers explain.

The authors believe this is because there is such a strong connection between the founder and their venture that the startup gets protected from the narcissism as there is such a strong desire for success.

So, it would seem that a degree of what would ordinarily be viewed as negative personality traits might actually be beneficial for startups to succeed.

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