In a person’s lifetime, there are times when one must patiently await opportunities, including those related to investments and profits. A recent study found that patience is a profitable trait for entrepreneurs. Individuals with the most patience are more likely to become successful entrepreneurs and earn substantial profits, while those lacking patience are likely to miss out on profitable opportunities.
In this study, researchers from the University of Bath’s School of Management in the UK analyzed data from over 21,000 British employees between 2009 and 2023. They examined the employees’ entrepreneurial intentions, entrepreneurial activities, subsequent incomes, while also taking into account factors such as age, gender, previous income, and risk preferences.
The study revealed that patient individuals have about a 50% higher likelihood of starting a business compared to those lacking patience. Among those who become business owners, patient individuals tend to earn around 40% more than their less patient counterparts.
Chris Dawson, a behavioral economist at the University of Bath, stated that entrepreneurship is often depicted as a process of swift action and seizing opportunities. While decisiveness is crucial, this study demonstrates that patience is indeed an advantage for entrepreneurs. Successful entrepreneurs invest more time and effort in identifying suitable opportunities and are willing to make financial investments early, even if the returns may take years to materialize.
Researchers noted several ways in which a lack of patience can impact entrepreneurship. Less patient individuals often spend less time seeking business opportunities and are more likely to jump on the first opportunity that arises rather than waiting for a potentially better one.
The study found that a significant increase in impatience can lead to a 10% lower likelihood of entrepreneurial activities compared to the average entrepreneurial rate. Among those who have already started a business, lower levels of patience are associated with significantly lower incomes.
Dawson further explained that impatient individuals tend to rush into action without continuing to search or plan. Just like financial investments, these activities come with immediate costs and deferred benefits, which may not be suitable for those lacking patience. This results in fewer quality options available, pushing the impatient individuals to accept low-quality opportunities that patient individuals would reject.
In the business realm, spending more time waiting for better opportunities, gathering more information, and investing more effort in preparation can significantly impact the final outcomes, according to Dawson.
Regarding the implications of this study for businesses, researchers suggest that assisting aspiring entrepreneurs in adopting a longer-term mindset can help reduce costly mistakes and enhance operational effectiveness.
The findings of the study were published on September 26 in the journal “Small Business Economics.”
When it comes to entrepreneurship, it’s not just young people who can pursue it. Experts suggest that even starting a business at the age of 60 is possible, as experience and wisdom provide numerous advantages to older individuals. Some industries are particularly suitable for retirees, such as consultancy, dog walking, real estate investment, franchise operations, writing, and more.
(Source: “Small Business Economics”)
Extend reading:
“Starting a Business at 60 Is Not Too Late: 9 Industries Suitable for Retirees”