Resilience and entrepreneurship
Resilience Theory: The Art of Getting Back Up
What is the single most important trait for a founder? Many argue it isn't intelligence or funding, but Resilience.
Resilience is defined as the ability to recover quickly from difficulties—to "get up after you fall down," whether physically, psychologically, financially, or socially. Because entrepreneurs typically face numerous failures on their way to eventual success, resilience is expected to be a critical capability.
More Than Just "Toughness"
The idea of resilience is appealing because it soothes the failing entrepreneur. It reinforces the belief that continuing on despite setbacks is better than withdrawing. In the startup world, this is often manifested as the "Pivot"—the ability to change directions rapidly as reality comes into focus, rather than quitting.
Evidence from the Field
Academic research supports the link between resilience and business survival:
- Ayala and Manzano (2014) found that small business owners in Spain are statistically more resilient than the general population, specifically highlighting the trait of "resourcefulness."
- Bullough, Renko, and Myatt (2014) took this further by studying "Danger Zone Entrepreneurs." They focused on founders during times of war and conflict, finding that resilience and self-efficacy were the primary drivers of entrepreneurial intention when physical safety was threatened.
Critique: Is it Unique to Entrepreneurs?
It is important to note that Entrepreneurial Resilience is a "borrowed theory," largely from evolutionary psychology and child development (Luthar et al., 2000).
Like all borrowed theories, it has limitations. While resilience applies to entrepreneurs, they do not monopolize it. There is likely just as strong a link between resilience and success in battle, sports, or managerial effectiveness. Therefore, while resilience is necessary for entrepreneurship, it may not be sufficient on its own—founders need other distinct skills (like opportunity recognition) to succeed.
Video: The Power of Resilience
References
Ayala, J. C., & Manzano, G. (2014). The resilience of the entrepreneur. Influence on the success of the business. A longitudinal analysis. Journal of Economic Psychology, 42, 126-135.
Bullough, A., Renko, M., & Myatt, T. (2014). Danger zone entrepreneurs: The importance of resilience and self‐efficacy for entrepreneurial intentions. Entrepreneurship Theory and Practice, 38(3), 473-499.
Luthar, S. S., Cicchetti, D., & Becker, B. (2000). The construct of resilience: A critical evaluation and guidelines for future work. Child Development, 71(3), 543-562.
