Reacting or Responding: Which Entrepreneur Are You?

Imagine two entrepreneurs facing similar challenges in their business ventures:

• Entrepreneur A: This entrepreneur notices a dip in sales figures. They think, “What actions can I take to understand this trend? Can I improve my marketing strategy? Are there cost-cutting measures I should consider? Could I offer new products or services?” They take ownership of the situation and focus on solutions.
• Entrepreneur B: Faced with the same challenge, this entrepreneur might say, “The market is just terrible right now. My competitors are ruthless. There’s nothing I can do.” They feel like victims of circumstances beyond their control, which often leads to inaction and discouragement.

Entrepreneur A has what is called internal locus of control, and entrepreneur B has external locus of control.

Why does this matter for entrepreneurs?

• Internal Locus of Control: Entrepreneurs with a strong internal locus of control tend to be more resilient, proactive, and innovative. They see challenges as opportunities for growth and are more likely to persevere through tough times. They believe in their ability to shape their own destiny.
• External Locus of Control: Entrepreneurs with an external locus of control might struggle with self-doubt and a sense of helplessness. They might be quicker to give up when faced with obstacles and may blame external factors for their setbacks.

Before you start analysing others, take a moment to reflect on your own locus of control.

• Do you tend to take ownership of your successes and failures?
• Do you believe you have the power to create positive change?
• Do you seek solutions when faced with problems?

If you find yourself leaning towards an external locus of control, don’t despair! This is not a fixed trait.

With conscious effort, you can shift your mindset towards a more internal perspective.

Understanding where someone is coming from, their locus of control, can help you tailor your interactions.

• For those with an internal locus of control, offer support, brainstorm solutions together, and celebrate their successes.
• For those with an external locus of control, offer encouragement, help them identify potential solutions, and remind them of their strengths.

It is important to appreciate that everyone is on their own unique journey.

Whether someone has an internal or external locus of control, approach them with empathy, understanding, and a genuine desire to connect.

By recognising and appreciating the diverse perspectives around you, you’ll build stronger relationships, foster a more supportive environment, and ultimately unlock your full potential as an entrepreneur.