Entrepreneurs often experience emotional highs and lows. They might feel excited after a big sale, only to feel dejected when a loan request is denied. Facing daily challenges tends to increase negative emotions more than positive ones, which may lead them to put less effort into achieving their goals.
However, resilience—the ability to adapt and keep functioning despite setbacks—can help. Previous studies have shown that resilient individuals generally experience more positive emotions and fewer negative ones. A new study published in Strategic Entrepreneurship Journal suggests that resilience is also linked to smaller emotional fluctuations.
“Studies have largely focused on the ability of resilient individuals to regulate their emotional experiences and their tendency to experience more positive emotions overall. Yet, fluctuations in emotions are another important aspect of emotional experience, and they have been shown to impact both the well-being of entrepreneurs and their progress in establishing their ventures,” explains Lauren A. Zettel, the sole author of the study and Assistant Professor of Entrepreneurship at Central Michigan University’s College of Business Administration. “So, this study examined the relationship between resilience and emotional fluctuations when entrepreneurs faced venture-related challenges.”
The author collected data from 163 technology entrepreneurs. First, participants completed an online survey where they filled out the Resilience Scale and described a major challenge they faced in their venture and its impact on their business goals. Then, over the next 10 working days, participants completed a short daily survey, reporting their thoughts on their goals, the challenges they faced that day, the frequency of their positive and negative emotions, and how much effort they put into achieving their goals.
A detailed analysis revealed that resilience was negatively associated with emotional fluctuations. In other words, entrepreneurs with greater resilience experienced more stable emotions day-to-day. “This finding is particularly interesting because entrepreneurship has often been described as an emotional rollercoaster. Yet, those who appear to be the most resilient find ways to manage the emotional ups and downs effectively,” notes Zettel.
Changes in emotions further influenced how much effort entrepreneurs invested and how much time they spent working toward their goals. “Those who, on average, experienced greater fluctuations in positive and negative emotions were more likely to show changes in the duration of effort they put in. Furthermore, when an individual’s negative emotions fluctuated beyond what was normal for them on a given day, this also led to greater changes in the intensity of effort they put in the following day,” explains Zettel.
“These findings suggest that entrepreneurs wishing to remain resilient through challenges should not necessarily aim to experience more positive and fewer negative emotions than what is normal for them. Rather, maintaining a steady balance between positive and negative emotions will help conserve their self-regulatory energy for the challenging tasks ahead,” concludes Zettel.
