How to Build Resilience as an Entrepreneur

Research & Sources / Entrepreneur Growth

During a strong storm, a big, stiff oak tree can snap in half. Next to it, a willow bends almost to the ground, its branches whipping in the wind. When the storm passes, the willow slowly straightens up again. Resilience is not about being unbreakable like the oak. It is about bending without breaking, and standing up again.

Entrepreneurs face many storms

Lost clients, cash flow problems, a key employee leaving, a failed product, a partner who disappoints, an economy that turns. Every entrepreneur faces storms. The question is not whether they come, but how well you recover.

What resilience is

The American Psychological Association describes resilience as the process of adapting well to difficulty, and stresses that it is not a fixed trait. It can be learned and strengthened, for example through relationships, self-care and the way we think about challenges.¹

That is good news. Resilience is a skill, not a personality type you either have or don’t.

Why entrepreneurs need to work on it

Michael Freeman and colleagues found that entrepreneurs in their study reported mental-health conditions more often than comparison participants.² The pressure is real. And because entrepreneurs often carry it alone, it can build up unnoticed.

Five habits that build resilience

1. Stay connected. People with strong relationships cope better with stress. Research by Julianne Holt-Lunstad and colleagues links strong social relationships to better health and longer life.³ Don’t isolate yourself in hard times, which is when connection matters most.

2. Look after the basics. Sleep, movement and food are the roots of the willow. Without them, every storm hits harder.

3. Focus on what you can control. You can’t control the economy. You can control your next three actions.

4. Learn from setbacks. After a storm, ask: what happened, what did I learn, what will I do differently? Reflection turns setbacks into experience.

5. Get support. A thinking partner, mentor or peer group can help you see the situation more clearly. A randomised study by Anthony Grant and colleagues found that executives who received coaching showed more resilience than a comparison group.⁴

Bend, don’t snap

Resilient entrepreneurs are not the ones who never feel the storm. They feel it fully. But they bend, they adapt, they ask for help, and they stand up again. And with each storm, they learn a little more about how to bend.

If the pressure lasts a long time or affects your health, talk to a doctor or a qualified professional. Resilience includes knowing when to get help.

What this means for you this week

• Write down the last big setback and three things you learned from it.
• Name two people you can call in a storm, and call one of them this week.
• Protect one basic: sleep, movement or meals.
• List what you can control in your current biggest challenge.

Be the willow. Bend, then stand up again.

Sources

1. American Psychological Association. Resilience. apa.orgResilience as a process of adapting to difficulty that can be learned and strengthened, including through relationships and self-care.
2. Freeman, M. A., Staudenmaier, P. J., Zisser, M. R. & Andresen, L. A. (2019). The prevalence and co-occurrence of psychiatric conditions among entrepreneurs and their families. Small Business Economics, 53(2), 323-342. doi.orgEntrepreneurs in the sample reported mental-health conditions more often than comparison participants.
3. Holt-Lunstad, J., Smith, T. B. & Layton, J. B. (2010). Social Relationships and Mortality Risk: A Meta-analytic Review. PLoS Medicine, 7(7), e1000316. doi.orgAcross 148 studies, people with stronger social relationships had a markedly higher likelihood of survival.
4. Grant, A. M., Curtayne, L. & Burton, G. (2009). Executive coaching enhances goal attainment, resilience and workplace well-being: a randomised controlled study. The Journal of Positive Psychology, 4(5), 396-407. doi.orgCoached executives made more progress on goals and showed more resilience and well-being than a comparison group.