Why Optimism Can Be An Entrepreneur's Best Asset

When asked what factors set successful entrepreneurs apart from everyone else, you might hear answers like grit, tenacity, or charisma. While those factors may be necessary, they all require one essential ingredient – optimism.

Looking at the brighter side of life can help you be happier and more successful. People who identify as optimists are 40% more likely to get a promotion within a year, according to research from The Harvard Business Review. They are also five times less likely to face burnout than their pessimistic counterparts. Having a positive outlook on the future, no matter what is happening in the present, can be the key to surviving and thriving in the face of innumerable challenges in entrepreneurship. Optimism is also a skill that can be learned and improved.

“Entrepreneurship is, in a way, the art of optimism. When you look at the statistics surrounding the failure rates of new businesses, you can see why. Something like 45% of new businesses will fail in the first five years according to the Bureau of Labor Statistics,” says Lexi Hartmann, Founder & CEO of iHartContent, a content marketing agency.

The Perks Of Being An Optimist

Optimism, at its core, is the belief in positive outcomes. It's a lens through which challenges are viewed as opportunities, failures as lessons, and uncertainties as possibilities. For entrepreneurs, this optimistic outlook transforms the very fabric of their operations, leading to several key advantages. “I faced many uphill battles getting to where I am today. Through it all, I’ve been an endless optimist. I credit that outlook to helping me overcome serious obstacles to find solutions,” says Hillary Walsh, Founder of New Frontier Immigration Law. “I help my clients see that there is always a solution, no matter how impossible their situation may seem.”

Entrepreneurship is a test of endurance. Setbacks and failures aren't just possibilities; they're inevitable. Optimism fuels persistence – the willingness to keep pushing forward despite obstacles. It's the difference between giving up after a failure and viewing it as a necessary step towards success.

“I think when we are optimistic, we learn to see failure not as true failure, but as a sign that we need to pivot. Even when my business has passed through some pretty tough trials, my optimism meant that I never saw it as a sign that it was time to throw in the towel. Instead, it helped me broaden my horizons. I don’t know that I would have been able to weather the many storms that come with entrepreneurship without it. You have to remain agile, and optimism, for me, has been the key to doing just that,” adds Hartmann.

Additionally, optimistic entrepreneurs are better positioned to sell their ideas to others. Investors and stakeholders invest not just in an idea or a product but also in people. An optimistic entrepreneur who is realistic about challenges but confident in their ability to overcome them is incredibly persuasive. Optimism signals to investors and stakeholders that the entrepreneur is resilient, strongly believes in their venture, and has the drive to navigate challenging times. This confidence is instrumental in securing funding, building partnerships, and garnering support from crucial stakeholders.

It has a positive impact not only on investors, but clients as well. “I realized last year that my ability to articulate my forward-looking, optimism-fueled approach actually puts clients at ease, which in turn makes it easier for me to attract and retain organizations and people aligned with my mission, vision, and skills. Once I unlocked that secret, so to speak, it gave me permission and freedom to be myself in front of my target audiences and clients – while some may see optimism as naiveté, I reject that and see it as a strength, especially in the world of marketing when things are ever-changing,” says Amanda Lien, Founder and Chief Storyteller of Minutiae Content Co., a marketing-minded content studio.

Fueling A Growth Mindset

Entrepreneurship is inherently risky, part of the appeal for many business owners. Optimism can help entrepreneurs keep going, even when the world seems against them. "Overestimating the chances of success means you also overestimate the returns on the effort you put into the project," says Augustin Landier, an assistant professor at the University of Chicago Graduate School of Business. "If you believe your start-up will succeed, you won't mind working nights and weekends on the project. If you know there is only a 30% chance of success, you may be more reluctant to work hard."

​​This behavior is essential for entrepreneurs, the teams they lead, and their clients. After all, optimism is contagious. Entrepreneurs with a positive outlook inspire confidence in their vision and attract like-minded individuals. “High-caliber talent gravitates toward leaders who are optimistic about the future and are committed to turning vision into reality,” explains Walsh. “An optimistic leader fosters a work environment where team members feel valued and supported, crucial for nurturing innovation, collaboration, and loyalty. Teams led by optimistic entrepreneurs are more resilient, adaptable, and driven – qualities essential for navigating the ups and downs of the business world.”

“Optimism is everything. Optimism drives innovation. Optimism breaks barriers. Optimism removes definitions and opens a world of possibilities. True undefined greatness comes from believing anything is possible. Ceilings aren’t meant to be raised, they’re meant to be shattered. I am a firm believer that when one door closes another door opens, and optimism is the driving force behind all decisions,” says Megan Gopp, Founder and Creative Director of The Adventure Agency, a boutique branding and marketing agency.

Optimism is an active, strategic asset that shapes how entrepreneurs think, lead, and overcome challenges. It fuels resilience, fosters innovation, attracts talent, secures investment, enhances decision-making, and builds lasting brands. However, it's important to distinguish between unquestioning optimism and strategic optimism. The latter is grounded in reality, informed by data, and coupled with a clear understanding of the challenges ahead. Strategic optimism empowers entrepreneurs to navigate the complexities of the business world with confidence, creativity, and a steadfast belief in their ability to succeed. Optimism is an entrepreneur's best asset in the entrepreneurial journey which can be fraught with uncertainties, risks, and challenges.