1. Do friends characterize you as an optimist?

2. Objectives Examine optimism in the context of entrepreneurial mindset Explore the impact of optimism on success as an entrepreneur Assess your personal optimism

3. Defining optimism “to anticipate the best possible result” “an inclination to anticipate a favorable outcome”

4. Studies of Optimism Met Life Study –The more optimistic half of agents studied sold 37% more than the pessimistic half –The most optimistic 10% sold 88% more than the most pessimistic 10% The Princeton-Penn Longitudinal Study –3rd grade pessimists either got depressed or stayed depressed (if already depressed) –3rd grade optimists either never got depressed, or recovered quickly

5. Studies of Optimism (con’t) The West Point Study –Pessimists were far more likely to quit, and get worse grades than their SATs predict College students with optimistic explanatory styles will outperform predictive measures such as SAT scores or high school grades. Students with pessimistic scores will under perform. Similar results from studies in the U.S. on Major League Baseball (MLB) and the National Basketball Association (NBA)

6. The Optimism Bias Neuroscience and social science suggest that we are more optimistic than realistic –Underestimate their chances of getting divorced, losing their job or being diagnosed with cancer –Expect their children to be extraordinarily gifted –Envision themselves achieving more than their peers –Overestimate their likely life span (sometimes by 20 years or more). Sharot (2012). “The Science of Optimism”

8. The Pros of Optimism Enables entrepreneurs to try new things Attempt difficult tasks Optimism can also be contagious, in that team members, partners, and investors may share in the enthusiasm and excitement of the optimistic entrepreneur.

9. The Cons of Optimism Overlook critical elements Discount uncertainties Accept high levels of risk Contribute to excessive business losses, or complete failure

10. Seeking Balance Think beyond the costs of pessimism vs. the benefits of optimism Recognize the importance of balance in understanding the relative powers of both optimism and pessimism.

11. Path to Balanced Optimism 1.Learn to identify adverse situations or events that you routinely face Write down the objective descriptions of what happened (not your interpretations of them) 2.Learn to hear (and record) the beliefs about those events that come to your mind Beliefs are how you interpret the adversity Separate thoughts from feelings Check the accuracy of thoughts; you can't check the accuracy of feelings - if you feel sad, you are sad. Seligman, M. (1990). Learned Optimism.

12. Path to Balanced Optimism (con’t) 3.Feel the consequences of those beliefs Write them down, in terms of emotions, energy, will to act, etc., and what you did. 4.Dispute those beliefs Evidence - evidence that contradicts or undermines the negative belief, and supports a more positive interpretation Alternatives - consider alternative specific, external, and temporary explanations Implications - challenging negative implications on which harmful beliefs rely. Even if the negative belief is correct, you can still de-catastrophize the implications Seligman, M. (1990). Learned Optimism.

13. Path to Balanced Optimism (con’t) 5.Notice what happens to your energy and will to act when you dispute the negative beliefs. Over time, the disputation becomes rapid and effective as the energization from it rewards you for the effort. Eventually, the positive explanatory style becomes your default response. Seligman, M. (1990). Learned Optimism.

14. Learn. Unlearn. Relearn. Our outlook on the world and our daily choices of disposition and behavior are in many ways learned patterns The capacity to “learn, unlearn, and relearn” emotional behaviors and psychological patterns is, indeed, a form of existential literacy.

15. Summary The optimist with high reality testing is ideal for entrepreneurs –Beware fooling yourself –Focus on positive options; be an “optionist” –Keep moving forward as a person “The illiterate of the 21st century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn.” Alvin Toffler