Research: How Well Do Entrepreneurs Know Themselves?
It’s crucial that entrepreneurs cultivate self-awareness.
You are your business. Knowing only one half of that equation isn’t a guarantee of success.
Entrepreneurs report higher self-awareness than non-entrepreneurs.
The higher an entrepreneur’s self-awareness, the more likely they are to enjoy work satisfaction and lead a better team.
Self-awareness can be cultivated through various reflection exercises, from personality assessments and journaling, to group workshops.
“My grandmother taught me to self-regulate, which instilled an inherent sense of right and wrong within myself,” says Lwando in her Recipe on Business & Ethics, making the point that self-aware entrepreneurs create self-aware businesses.
Let’s talk about entrepreneurs and self-awareness.
A school guidance counsellor once suggested that I study urban planning. It really didn’t strike a chord with me. What did I know about civil engineering? I dismissed the advice.
Fast-forward a handful of years and it actually made total sense – urban planning is a field that exactly fits my skill set and way of thinking. Every personality survey, workshop or Enneagram I do tells me I’m a big-picture thinker who likes to connect the dots and that I have a high level of empathy for the value of each cog in the machine.
Looking back, it also occurs to me that as a kid I used to dream about getting into golf-course design. I’d spend my days drawing course layouts … when I wasn’t mapping out Lego designs, creating strategies for sports teams, structuring screenplays or drawing up creative business plans.
This kind of self-knowledge isn’t just a nice-to-have. The more I paid attention to my natural rhythms and thoughts (the good and the bad), the more I got to know myself, and the more I got to know myself, the better I performed . From coasting my way through high school to receiving top honours in a Masters programme, self-awareness helped me to get better at achieving the goals I set for myself.
It’s a process that shouldn’t ever really stop – especially for entrepreneurs.
In fact, I am a firm believer that the best chance an entrepreneur can give their start-up is to build it in their own (self-aware) image. Whatever your personality type or temperament, build a business and culture that is most true to you.
The entrepreneur’s journey is already hard enough. Every day you’re faced with variables outside your control. The one thing that you can control – the thing that will help your cause the most – is knowing who you are.
You are the business. Best the two align.
But hey, don’t take my word for it. Below are insights from research papers that explore the relationship between entrepreneur performance and self-awareness:
Insight 1: Entrepreneurs Have Above-Average Self-Awareness Versus Non-Entrepreneurs
A study in the Journal of Applied Psychology measured and compared entrepreneurs’ self-awareness versus that of non-entrepreneurs, and found a higher level among the former. They posited that this was most likely due to the demands of a business on the entrepreneurs.
Insight 2: High Self-Awareness Correlates Positively With Work Satisfaction
The Journal of Business Venturing found that entrepreneurs who reported higher levels of self-awareness also reported higher levels of satisfaction with their businesses.
Insight 3: Self-Awareness Makes For Better Teams
After surveying 181 members of entrepreneurial teams, one study found that teams with higher levels of self-awareness were more effective at communication, coordination and problem-solving than those with lower levels.
Insight 4: Entrepreneurs Improve Their Self-Awareness Through Self- & Co-Reflection
Engaging in regular self-reflection, such as journaling or self-assessments, helps entrepreneurs to improve their self-awareness, according to a study in the Journal of Business Venturing. It also showed that working with a coach or participating in training programmes with your peers can be effective in improving self-awareness.
It seems the intense demand of starting and building a business creates an environment that encourages entrepreneurs to invest in knowing themselves. This has a positive impact on their work satisfaction, performance and adaptability, leading to a better chance of success.
A good entrepreneur will seek out time for self-reflection and peer support as a way to continue improving their self-awareness.
Learn. Do. Share.
So, what are the actions we can take from these insights?
For entrepreneurs: When last did you engage in a self-reflection exercise? Can you set time aside this week to do a research-backed personality assessment, or some journaling?
For educators: How can you expose entrepreneurs to more opportunities to map their personality traits and strengths?
For brands: What steps are you taking to get to know entrepreneurs better before engaging with them?
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