A Growth Mindset is the key in startup businesses

The failure rate of start-ups in South Africa is one of the highest in the World, estimated at five out of seven. Numerous research papers have been written on the subject many blaming Black Empowerment Policy, others the lack of a Start Up Act.

However having recently judged 300 start-ups in a National Competition for University Graduates I realised the problem may be more fundamental. With abundant Natural and Mineral Resources, a consumption driven middle class, no shortage of young imaginative people, one would assume that SMMEs would be flourishing, but unfortunately this is not the case. Indeed the job adding expectations of SMMEs to the economy has been disappointing.

So what is going wrong? An analysis of the 300 submissions seems to suggest that Mindset is the biggest limiting factor to success. In other words these young entrepreneurs are failing because they lack the skill to move from a fixed to a growth mindset. This suggests that the starting point of entrepreneurship courses should be to refer learners to one of the many free Tool kits that are readily available online.

These are some of the Fixed Mindsets we came across:

1. I don't need help I can do it on my own;

2. I need to wait for more resources before starting;

3. It's a brilliant idea therefore it will be a fantastic business;

4. I must help Community before myself;

5. you can't say no to what I'm asking for;

6. I'm scared to start in case I fail; and,

7. I need to start big or not at all.

Contact me if you would like to discuss this subject in more detail.