Embracing change: from risk and resilience

'Most entrepreneurs are risk-takers by nature, or at the very least calculating visionaries with a clear plan of action for launching a new product or service to fill a market need. On a personal level, many entrepreneurs take significant risks by leaving secure employment to invest their time (and occasionally their money) in starting a company.'²²

Risks that social entrepreneurs face

Being a social entrepreneur can be extremely rewarding. You get to pursue your passions, influence people's lives and achieve financial independence. However, some other risks and obstacles come with being a full-fledged social entrepreneur, which you should be completely aware of before going on this journey.

Check out the following list of risks that an entrepreneur can face.

• Obtaining finance
• Backlash
• Not focusing on profit
• Burnout
• Lack of public knowledge
• Not many successful cases
• Marketing.

Obtaining finance

'When starting a business, most entrepreneurs require some form of financing. Whether they plan to borrow money from a private lender or a bank, the reality is that launching a business comes with a lot of expenses. The issue with social entrepreneurship is that the business models rarely generate large profits. This, combined with the widespread misconceptions about social entrepreneurship, makes lenders reluctant to lend substantial sums to social entrepreneurs.

It might be demoralising to be continually refused by lenders. That is why a sound business plan and a reliable method of turning over profits is crucial.'²²

Backlash

'If you are fighting for a cause, there will almost always be those fighting against you. The more controversial your cause, the more opposition you can expect. Backlash on social media may be relentless and have a negative impact on your mental health.

It is critical to be aware of current social justice organisations and whether your proposed projects would trample on anyone's toes.'²²

Not focusing on profit

'Many social entrepreneurs are so caught up in their cause that they do not focus on creating a profit. However, making a profit is very important when satisfying your investors, maintaining a successful business, and putting food on your table. If the cause is really your main priority, remember that the more profit you make, the more you will be able to put back into your business and the more financial freedom you will have.'²²

Burnout

'Burnout is a genuine risk for social justice entrepreneurs. Because they often put their heart and soul into their work, social entrepreneurs work themselves to the bone and work long hours. Like with all types of entrepreneurs, there are no set working hours, so entrepreneurs find their personal lives and their work lives mixed up. It is very important to ensure that you maintain a healthy work/life balance to avoid burnout which can affect both your physical and mental health.'²²

Lack of public knowledge

'Although social entrepreneurship is growing and expanding, most of the general public do not have a clear idea of what social entrepreneurship is exactly. This can make it difficult for your cause to gain support, and support from the general public and local communities is often imperative to your success as a social entrepreneur.'²²

Not many successful cases

'Unfortunately, when looking for role models and success cases in social entrepreneurship, there are not many to choose from, so you have minimal business models to use as templates. This also affects your likeliness to get a loan as lenders like to see examples of similar, successful companies.'²²

Marketing

'Marketing a social business comes with its challenges. Unfortunately, many social entrepreneurs do not emphasise effective marketing. They may not have the resources, time or funds to put into marketing, which could act as a massive risk and challenge'.²²

Entrepreneurial adversity

4 Types of adversity

A person might endure four different kinds of adversity, and hardship can either break or make an entrepreneur.

Physical adversity

Physical adversity includes things like physical impairment. A professional athlete, for example, may endure physical difficulties after suffering a career-ending injury, which changes their life's direction dramatically. Furthermore, being blind, deaf, obese, or in chronic pain and having to deal with the problems associated with those conditions may motivate someone to battle for a normal life.

Mental adversity

Routines are your friend when dealing with mental suffering. Make a habit of waking up, exercising, and taking your medication simultaneously every day. Another important component of dealing with mental health issues is never giving up hope of getting well. Things can be difficult for a while, even a long period, but there's always something new you can attempt to enhance your health.

Emotional adversity

Most of us need to learn how to experience our emotions without allowing them to control us. Emotional maturity comes through practice and a positive mindset. Those who lack this maturity face greater challenges in life. Every feeling can be controlled, no matter how strong it is. Learn to control yourself using the resources at your disposal.

Social adversity

Our ability to engage with others is critical to our success. This means that someone lacking certain social abilities is at a significant disadvantage. You may improve your social game by using programmes and self-help books. Almost everybody can benefit from some research and practice on enhancing their interpersonal skills.’²³

Overcoming Entrepreneurial adversity

‘Risks and adversity can be motivational for entrepreneurs as it makes them stronger. So use adversity to your advantage. Every entrepreneur has experienced difficulties and adversity. The deal includes cash flow issues, temperamental customers, hostile investors, and unanticipated economic downturns. The most successful entrepreneurs take on each one at a time, never losing their stride or enthusiasm, and many secretly delight in solving seemingly impossible problems.’²⁴

Take a look at the following principles that can support any entrepreneur when facing adversity.

Resilience is considered a type of emotional and cognitive capacity that is beneficial.

An entrepreneur would use resilience, particularly when recovering from failures related to their entrepreneurial venture.

What does it mean to build resilience?

Start-ups today face all sorts of challenges that relate to the market, audience, hiring, product, capital, and customer service. There is no shortage of setbacks you could run into building resilience. How can you build resilience in the face of all these potential roadblocks? Building resilience involves reconsidering what appears to be a negative event—a failing business, a flopped product launch, a useless app, and seeing it as a seed for future growth and success.

Factors of resilience

Resilience can be developed by building coping skills and adaptability. It can only develop when facing adversity.

• Social Support: Support by family, friends, and community.
• Realistic Planning: Understand your strengths and create achievable goals.
• Self-Esteem: Positive sense of self and standing on your strengths can starve feelings of helplessness.
• Coping skills: Learn to problem-solve and grow in applying positive coping skills
• Communication Skills: The ability to communicate clearly and effectively helps people find support, gain resources, and take action
• Emotional Regulation: The capacity to manage overwhelming emotions (or seek help to work through them) guides people to keep focused when overwhelmed

The truth is that those with resilience often have an easier time facing challenges simply because:

1. They will be less likely to give up as quickly.
2. They will be steadfast.

Facing obstacles, head-on can translate to finding solutions more quickly because you are not avoiding or ignoring the unpleasant facts before you. Seeing setbacks as opportunities for growth makes you more prepared to deal with them and encourages you to seek out challenges because you know they will move you forwards. Check out the infographic on how to adopt a more resilient mindset.

Resilient characteristics

Have you ever witnessed someone going through something that should have broken them but made them stronger? That would be their resilience in action! Being resilient means being able to recover from adversity quickly. Resilient people can work through adversity, learn from it, and develop stronger and more capable of overcoming adversity in the future.

Take a look at a few of these characteristics.

• Control: You control how you respond and react, which in turn affects the outcome. Do not compare yourself to others.
• Support: are you relying on friends, family, and others when needed? Get a trusted network of people around you.
• Optimism: trust in yourself that you can handle the situation. Do not complain and have a good attitude. Do not wallow in your sorrows. Make a plan, trust yourself, and move on. It is good to be able to laugh at yourself.
• Problem-solving: Identify possible ways to resolve a problem. Do not be afraid to ask for help.
• Coping Skills: identify ways to reduce anxiety and stress.
• Self-Care: make sure your mental, emotional, and physical health is first. Hold yourself accountable and have a healthy sense of responsibility.
• Self-Awareness: what are your strengths and weaknesses. Accept your limits, but also know where you can grow.

Are you building resilience?

The bad news? Building resilience takes time. It will not be done in a week, month, or year. You may spend your whole life cultivating resilience and always have room to grow.

Reflective analysis

• Consider the questions listed below and act as your resilience coach, answer these for yourself by reflecting on who you are as a person and how you would like to see yourself grow.
• Use your research and identification of opportunities to influence your entrepreneurial journey from a summative one as a guide.
• Which character traits do you possess that make you resilient and may support you in an entrepreneurial venture?
• What are areas you could develop to strengthen your resilience?
• What might hinder you in an entrepreneurial venture?
• Write down a list of ways to build resilience in people; how can resilience be developed? Include comments relating to one's mindset.

Share your findings with your peers on the forum.