Raising Finance

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Closed-minded entrepreneurs less likely to get funding

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Despite the perception that ego-centred individuals are more likely to succeed as entrepreneurs, the research found collaborative and open-minded individuals are more likely to receive investment than their closed-minded and introverted counterparts.

Single-minded determination is sometimes considered a virtue in entrepreneurship circles. However, an overly independent mindset can turn investors off. Aston University, Birmingham found that those who they assessed to be showing traits of open-mindedness and collaboration were much more likely to be successful when applying for funding than their more closed-minded counterparts. 

Doctoral researcher at Aston Business School, Geoff Parkes describes the results: “There’s a typical view of entrepreneurs as swashbuckling, risk-taking mavericks, with a ‘my way or the highway’ approach to getting things done. 

“Actually, it is those who are better at collaborating and planning who are more successful when it comes to applying for finance.”

Research, as well as anecdotal evidence, supports this. Entrepreneurs from Steve Jobs to Richard Branson advocate building a supportive team. In a recent Real Business interview, entrepreneur Steve Jillings said it was without a doubt the key to business success.

Parkes said: “Determination and drive are still vitally important but entrepreneurs need to be able to listen and adapt too. Entrepreneurs need to be able to collaborate and communicate with multiple funders and take on board ideas and suggestions.”

He added: “The results also reveal that many of those in the lower group seem unaware of the behavioural adjustments they need to make to maximise their chances of a successful application. A psychometric test is quick and easy to take.”

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