Topic 2: Creating a Success Cycle Mindset
As the learner may have noticed, turning failure into success depends mostly on our mindset. There are some external factors that could help us, such as financial resources or emotional support, but most of the factors leading to success in the long run are related to the behavior and approach the individual has regarding failure. Therefore, success can come only if the entrepreneur develops a successful mindset. The previously mentioned strategies regard mostly the capacity to deal with failure and to overcome it. In this case, we will address strategies that, once a failure has been overcome, will help entrepreneurs maintain a success cycle mindset.
The success cycle mindset is based on three main aspects. These aspects are related to mentality rather than practical strategies. They involve a reset in the way the individual approaches their daily life.
Once the failure has been assumed and the external and internal attributions established, there needs to be an oscillation between them. This means that the entrepreneur, to establish internal stability, must stop and think in the most rational way (Lattacher Wdowiak, 2017). Thanks to this process, the entrepreneur can engage in the success cycle mindset, which consists of the combination of cultivating an unemotional relationship with failure, self-honesty and reflection, and intrinsic motivation. As it will be explained, these characteristics are fundamental to initiating a circle that feeds back each other.
Success Circle Mindset
Source: EH Consortium, created on Canva
Cultivating an unemotional relationship with failure (Olaison & Sørensen 2014): To grow into success, it is important to detach from failure. The entrepreneur must acknowledge that failure is inevitable in business, and that it is just another (necessary) element to deal with during the entrepreneurial venture, as it could help them with reaching clients, dealing with suppliers, hiring and firing employees, paying taxes etc. Thus, extracting any emotional trait from failure itself can ensure that the entrepreneur is faced with less probability of blockages, grief, and other unwanted consequences. Thus, by cultivating an unemotional relationship with failure, entrepreneurs can maintain a resilient mindset (see Unit 1, Topic 4).
Self-honesty and reflection (Botina, Aza & Huertas, 2020): Success always depends on the capacity of the entrepreneur to be honest with themselves. This is very much related to the reflection phase when dealing with failure. In this case, self-honesty is important for analysing what is not going well, rather than what went wrong. Self-honesty is very much related to facing uncomfortable truths about oneself, which may cause feelings of shame, embarrassment etc. Being honest with oneself is not always easy and is often even painful. Yet, avoiding facing the truth (which, in many cases, everyone knows deep down) could only create problems in the long run. For example, finances and payments often turn out to be quite complex. Some people find it easier, and others struggle more with numbers. Accepting that we are not good (or at least not as good as we should be) at certain tasks is not always easy, since it may involve strong sentiments such as pride, self-worth, ego etc. Although entrepreneurs could be trained in those skills, they should be able to delegate (Khosla & Gupta, 2017) and know what tasks they can perform, as well as those that should be assigned to other people. By engaging in honest self-reflection, the entrepreneurial activity can be more efficient, and thus, more likely to succeed.
Intrinsic motivation (Zhou & Tang, 2020): Intrinsic motivation is one of the most important driving forces of an individual. It is an internal process, defined as the condition inside us that desires a change, either in oneself or in one’s environment (Reeve, 2015). Intrinsic motivation is the natural drive for success. The entrepreneur must feel driven by their convictions when engaging in entrepreneurial activity. If there is no passion or personal interest in the entrepreneurial activity itself, it is more likely that it will not succeed. A success-oriented mindset must be driven by intrinsic motivation.