{"id":16109,"date":"2021-10-12T09:00:55","date_gmt":"2021-10-12T07:00:55","guid":{"rendered":"https:\/\/my-life.lu\/?p=16109"},"modified":"2024-09-04T12:04:12","modified_gmt":"2024-09-04T10:04:12","slug":"entrepreneurs-dont-get-complacent-21019","status":"publish","type":"post","link":"https:\/\/my-life.lu\/en\/entrepreneurs-dont-get-complacent-21019\/","title":{"rendered":"Entrepreneurs: don\u2019t get complacent!"},"content":{"rendered":"
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Are you a self-made man or woman who has created and built up your business under your own steam? While you have every reason to be proud of the progress you\u2019ve made, be sure not to sit on your laurels. Keep questioning yourself!<\/p>\n

It hasn\u2019t always been easy but your company hasn\u2019t encountered any major obstacles so far. All systems are go. It might now be time to change things up a gear, make some crucial hires, take important investment decisions, open up your capital to a new shareholder or plan to expand abroad<\/strong><\/span><\/a>. There\u2019s no reason to be afraid. After all, your skills have always allowed you to sail through challenges in the past and you\u2019re sure it\u2019s the right thing to do.<\/p>\n

But is this profound sense of self-belief warranted? Of course, you have a long track record of successes to justify it. But have you also taken the time to humbly take stock of occasions when you\u2019ve failed? Believing in yourself is one thing, but thinking that you\u2019re infallible is a source of arrogance and error. This is called a \u201cself-serving bias\u201d and, as the saying goes, \u201cpride comes before a fall\u201d.<\/p>\n

You can be blinkered when it comes to your mistakes; in order to help you be more open to accepting your errors and avoid repeating them in future, let\u2019s look at this phenomenon more closely.<\/p>\n

Self-serving bias is a phenomenon whereby you always perceive yourself in a light that is (too) favourable.<\/p><\/blockquote>\n

What is self-serving bias?<\/h2>\n

Self-serving bias is a phenomenon whereby you always perceive yourself in a light that is (too) favourable. It describes the individual\u2019s inclination to attribute their success to their own qualities (internal causes) and blame their failures on factors that are unrelated to them and over which they have no control (external causes). We have all fallen victim to this bias at some time or other, for example during our school days. We earned our good grades through hard work and intelligence. Any bad grades were of course the fault of overly strict teachers who didn\u2019t like us.<\/p>\n

Let\u2019s not beat around the bush: like you, we like to present ourselves in a favourable and flattering light. It nurtures our ego and opens doors for us, especially when we can take credit for something that has been a resounding success. This isn\u2019t necessarily a huge problem, as long as we are still able to put things into perspective.<\/p>\n

Psychological and economic literature highlights that entrepreneurs who have managed to grow their businesses tend to boast about their personal qualities and skills and play down the contribution made by sheer good luck. And when they fail, the same entrepreneurs generally jump to blame bad luck or a mishap or find excuses so that they don\u2019t have to point the finger at themselves.<\/p>\n

We are rarely objective when it comes to assessing our own performance (or lack thereof). This is why it is important to always be wary of testimonials on sites like LinkedIn that explain why certain entrepreneurs or sportspeople are successful. In all likelihood, the person behind these accounts is only telling the part of the story that casts them in a positive light, failing to mention \u2013 whether consciously or subconsciously \u2013 certain past mistakes or luck.<\/p>\n

Attribution and performance<\/h2>\n

In psychology, self-serving bias is studied through the lens of attribution. In order to better understand and decipher our environment, we constantly seek to identify the causes of the social interactions and events we experience.<\/p>\n

Ability and effort are known as internal attributions. Difficulty and luck are referred to as external attributions.<\/p><\/blockquote>\n

Fritz Heider is often described as the father of attribution theory. In 1958, he explained in his book \u2018The Psychology of Interpersonal Relations\u2019 that there are four possible types of causal attributions. Ability and effort are known as \u201cinternal cause\u201d attributions. Difficulty and luck are referred to as \u201cexternal cause\u201d attributions.<\/p>\n

For example, making a highly profitable investment might be put down to an investor\u2019s investing prowess, to the effort they put into growing their investment or simply to a stroke of luck following entirely unpredictable market conditions. Under the influence of the self-serving bias, individuals have a distorted view of their own ability and ignore external factors. Our investor will therefore believe that their success is solely attributable to their impeccable market analysis. On the other hand, they will attribute losses made on other financial investments to bad luck or poor advice from a third party.<\/p>\n

This bias can be particularly harmful to entrepreneurs<\/strong><\/span><\/a> because it leads individuals to ignore their flaws and failings. They may then lose all sense of self-criticism and get wrapped up in a delusion of infallibility, with the potential to harm the future of their business. In short, they are no longer capable of learning from their mistakes.<\/p>\n

Humility as a vector of success and leadership<\/h2>\n

To achieve your goals and ambitions in both your professional and private life, you need to be able to learn from your mistakes to improve. But, if you become incapable of attributing any failures to mistakes you have made, it becomes much harder to progress.<\/p>\n

Failure is an inevitable part of life and of any entrepreneur\u2019s journey. Only those who do nothing will never fail. Failure is a sign that you have stepped outside your comfort zone. Failure becomes \u201cnoble\u201d if you are able to learn constructive lessons for the future.<\/p>\n

Having the humility to recognise your failings is a sign of maturity and is crucial for progress.<\/p><\/blockquote>\n

No one takes pleasure in acknowledging their mistakes and people are often afraid of losing face if they do. Having the humility to acknowledge your failings is a sign of maturity and is crucial for progress. However, constantly blaming others for mistakes and only taking credit for the wins are toxic management behaviours.<\/p>\n

Let\u2019s come back to your position as an entrepreneur. Knowing how to own your mistakes demonstrates a level of maturity that legitimises your leadership and which builds trust, whether among shareholders, employees or those who are prepared to give your projects financial backing. You absolutely have to be convinced that there is value in failing and take responsibility for your actions.<\/p>\n

By refusing to be accountable for your mistakes, you might be able to retain a good image of yourself but, in the long run, you are not fooling anyone. And that will jeopardise your business. How can you build something sustainable with a leader who cannot accept their mistakes? Rest assured that we in no way want you to fail. We simply want to encourage you, when it does happen, to take responsibility, to accept criticism and to analyse any pointers with a cool head to allow you to move forward.<\/p>\n

Do you keep a journal of your investments<\/strong><\/span><\/a> or business decisions? Doing so will allow you to cross-reference any criticism with the reasons that drove certain decisions. You will be able to see whether you were right or if you clearly made mistakes that can be corrected. You may even be able to identify certain detrimental decision-making patterns that you can completely review in future.<\/p>\n

Reread your classics!<\/h2>\n

It is only by accepting and examining your mistakes that you will learn from them. Self-serving bias has always been harmful for entrepreneurs. If you needed any convincing, go back to the fable of \u2018The Ingratitude And Injustice Of Men Towards Fortune\u2019 (L’ingratitude et l’injustice des hommes envers la fortune<\/em>) by Jean de La Fontaine. Here is an excerpt:<\/p>\n

\"\"<\/p>\n

A trader on the sea to riches grew;<\/em>
\nFreight after freight the winds in favour blew;<\/em>
\nFate steer’d him clear; gulf, rock, nor shoal (…)\u201d<\/em><\/p>\n

A bosom friend, a look his table giving,<\/em>
\nInquired whence came such sumptuous living.<\/em>
\n‘Whence should it come,’ said he, superb of brow,<\/em>
\n‘But from the fountain of my knowing how?<\/em><\/p>\n

I owe it simply to my skill and care<\/em>
\nIn risking only where the marts will bear.’<\/em><\/p>\n

And now, so sweet his swelling profits were,<\/em>
\nHe risk’d anew his former gains:<\/em>
\nSuccess rewarded not his pains<\/em>
\nHis own imprudence was the cause (…)<\/em><\/p>\n

‘For, if to make you rich the dame denies,<\/em>
\nShe can’t forbid you to be wise.’<\/em><\/p>\n

What faith he gain’d, I do not wis;<\/em>
\nI know, in every case like this,<\/em>
\nEach claims the credit of his bliss,<\/em>
\nAnd with a heart ingrate<\/em>
\nImputes his misery to Fate.<\/em><\/p>\n

Entrepreneurs: don\u2019t get complacent!<\/p>\n","protected":false},"excerpt":{"rendered":"

Are you a self-made man or woman who has created and built up your business under your own steam? While you have every reason to be proud of the progress you\u2019ve made, be sure not to sit on your laurels. Keep questioning yourself! It hasn\u2019t always been easy but your company hasn\u2019t encountered any major … <\/p>\n

Continue reading “Entrepreneurs: don\u2019t get complacent!”<\/span><\/a><\/p>\n","protected":false},"author":11,"featured_media":16103,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":"","beyondwords_generate_audio":"0","beyondwords_integration_method":"","beyondwords_project_id":"","beyondwords_content_id":"","beyondwords_preview_token":"","beyondwords_player_content":"","beyondwords_player_style":"standard","beyondwords_language_code":"","beyondwords_language_id":"","beyondwords_title_voice_id":"","beyondwords_body_voice_id":"","beyondwords_summary_voice_id":"","beyondwords_error_message":"","beyondwords_disabled":"","beyondwords_delete_content":"","beyondwords_podcast_id":"","beyondwords_hash":"","publish_post_to_speechkit":"","speechkit_hash":"","speechkit_generate_audio":"","speechkit_project_id":"","speechkit_podcast_id":"","speechkit_error_message":"","speechkit_disabled":"","speechkit_access_key":"","speechkit_error":"","speechkit_info":"","speechkit_response":"","speechkit_retries":"","speechkit_status":"","speechkit_updated_at":"","_speechkit_link":"","_speechkit_text":""},"categories":[167,17],"tags":[472,585],"class_list":["post-16109","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management-en-2","category-mycompany-en","tag-management","tag-contact-en","my_company"],"yoast_head":"\nEntrepreneurs: don\u2019t get complacent! - myLIFE<\/title>\n<meta name=\"description\" content=\"Even if your business is thriving, be sure not to sit on your laurels. 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