HOW TO DEAL WITH CRITICISM TO BOOST YOUR ENTREPRENEURIAL SKILLS

APA full citation: Filho, C. I. (2024, October 15). How to Deal with Criticism to Boost Your Entrepreneurial Skills. EBS I&D Centre. https://www.ebscentre.org/business-and-finance/

Article - How to Deal with Criticism to Boost Your Entrepreneurial Skills.pdf

Download PDF • 149KB

---

Introduction

Entrepreneurship is a challenging journey that often exposes individuals to various forms of criticism. While some feedback is constructive, others may come across as harsh or unhelpful. Learning how to deal with criticism effectively is essential for entrepreneurs, as it can significantly impact both personal growth and business success. This article explores psychological strategies and business techniques to leverage criticism in boosting entrepreneurial skills.

Understanding Criticism

Criticism can be categorized into two types: constructive and destructive (Baumeister, Bratslavsky, Finkenauer, & Vohs, 2001). Constructive criticism focuses on providing feedback intended to improve performance, while destructive criticism is often delivered in a negative manner without offering solutions (Rosenberg, 2003). Entrepreneurs, facing high levels of uncertainty and risk, are more vulnerable to the latter, as it may erode confidence and hamper decision-making abilities (Kets de Vries, 1996).

Psychological Framework for Handling Criticism

Effective handling of criticism starts with developing resilience. According to Baumeister and Leary (1995), the need for social approval is a fundamental human motivation. When entrepreneurs receive negative feedback, their self-worth can feel threatened. Cognitive-behavioral approaches can help individuals reframe negative feedback, viewing it as an opportunity for improvement (Bandura, 1977). 

Practicing mindfulness also helps in managing emotional responses to criticism. By creating mental distance between feedback and the self, entrepreneurs can maintain a growth mindset (Dweck, 2006). This mindset allows them to see criticism as a learning opportunity rather than a personal attack, which is critical for continuous improvement and innovation.

Business Applications: Turning Criticism into Opportunity

In a business context, criticism can be a valuable source of information if managed properly. Entrepreneurs who adopt an open-door policy for feedback encourage a culture of transparency and continuous improvement (Edmondson, 2018). Research shows that companies where leaders are receptive to feedback tend to innovate faster and have better employee engagement (Rogers, 2003).

It's important to distinguish between actionable and irrelevant criticism. Bennis and Thomas (2002) suggest that successful entrepreneurs focus on feedback that is specific, actionable, and relevant to their business objectives. Unfiltered or irrelevant criticism, on the other hand, should be disregarded to avoid emotional burnout.

Practical Techniques to Use Criticism Constructively

1. Active Listening: Entrepreneurs should practice active listening when receiving feedback. This involves fully focusing, understanding, and responding thoughtfully, even when the criticism seems unmerited (Covey, 1989).

2. Ask for Clarification: If the criticism is unclear, entrepreneurs should not hesitate to ask for specifics. This ensures they receive concrete suggestions that can be implemented (Rogers, 2003).

3. Self-Reflection: Reflecting on the criticism helps entrepreneurs identify patterns in their behavior or decision-making processes that may need change (Schön, 1983).

4. Build Emotional Intelligence: Entrepreneurs with high emotional intelligence are better equipped to process feedback without taking it personally (Goleman, 1995). This enables them to respond to criticism calmly and pragmatically, improving interpersonal relationships and leadership effectiveness (Read these two recommended books: Master Your Emotions and Emotional Intelligence 2.0).

Conclusion

Criticism, when managed effectively, is a powerful tool for entrepreneurial growth. By adopting psychological resilience techniques and fostering a business environment that values constructive feedback, entrepreneurs can enhance their decision-making skills, innovation capacity, and leadership qualities. Building a growth mindset and leveraging criticism as a source of learning are critical steps toward entrepreneurial success.

Carlos I. Filho

References

Baumeister, R. F., & Leary, M. R. (1995). The need to belong: Desire for interpersonal attachments as a fundamental human motivation. Psychological Bulletin, 117(3), 497–529.

Baumeister, R. F., Bratslavsky, E., Finkenauer, C., & Vohs, K. D. (2001). Bad is stronger than good. Review of General Psychology, 5(4), 323–370.

Bandura, A. (1977). Self-efficacy: Toward a unifying theory of behavioural change. Psychological Review, 84(2), 191–215.

Bennis, W. G., & Thomas, R. J. (2002). Geeks and Geezers: How Era, Values, and Defining Moments Shape Leaders. Harvard Business Press.

Covey, S. R. (1989). The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change. Free Press.

Dweck, C. S. (2006). Mindset: The New Psychology of Success. Random House.

Edmondson, A. C. (2018). The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation, and Growth. Wiley.

Goleman, D. (1995). Emotional Intelligence: Why It Can Matter More Than IQ. Bantam Books.

Kets de Vries, M. F. R. (1996). The Leadership Mystique: An Owner's Manual. FT Press.

Rogers, C. R. (2003). Client-centered Therapy: Its Current Practice, Implications, and Theory. Houghton Mifflin Harcourt.

Rosenberg, M. (2003). Nonviolent Communication: A Language of Life. PuddleDancer Press.

Schön, D. A. (1983). The Reflective Practitioner: How Professionals Think in Action. Basic Books.