Does Testosterone make you more entrepreneurial?
The question of whether testosterone contributes to entrepreneurial spirit is bound to stir debate. After all, men typically have more testosterone than women. But this becomes even more contentious when we consider the glaring funding gap and other inequities faced by women entrepreneurs.
Yet, from the angle of neuroentrepreneurship, this question is an intriguing one. In sports, high testosterone is linked to better performance, increased motivation, and aggression. But does the same hold true in the world of entrepreneurship?
Research from the University of Western Ontario sought to clarify this, focusing on whether testosterone levels could predict someone’s likelihood of becoming an entrepreneur, particularly through their willingness to take risks.
As usual, I dissected the study so you don’t have to.
Why Testosterone?
Testosterone has been evolutionarily associated with dominance and risk-taking – traits that once meant better survival odds. Today, these traits translate to success in competitive fields like sports and business, where being assertive and bold pays off.
Studies suggest that people with higher testosterone levels are more likely to take initiative, be independent, and persist -qualities that are valuable for anyone starting a venture that is by nature, risky and opportunity-driven.
The Research Study
The study formulated two theories: (1) that testosterone and risk-taking go hand-in-hand; and (2) that this risk-taking drives people towards entrepreneurship.
Researchers selected 166 mostly male MBA students to minimize gender-based hormonal variations and the impact of contraceptives on women’s testosterone. Entrepreneurial activity was defined as actively starting a new business, verified by both self-reporting and external evidence.
Testosterone was measured from saliva samples taken twice in one day to consider natural fluctuations. Risk-taking was assessed via the Jackson Personality Inventory. The study controlled for variables like age, ethnicity, and education to validate the results.
The Results
Through sophisticated statistical analysis, the study confirmed that entrepreneurs had higher testosterone and were more inclined to take risks. This suggests a biological thread in the entrepreneurial fabric.
But it’s essential to understand that entrepreneurship isn’t solely a result of biology. It’s a mix of our innate tendencies and our environment.
While these findings are thought-provoking, they should be navigated carefully, especially considering the ethical implications of using such biological markers in professional settings, like determining who gets venture capital funding. This research reminds us that our biology may shape our actions, but it doesn’t set our professional destiny in stone.
Implications for Entrepreneurs
Understanding the biological underpinnings of risk-taking could be the edge every founder needs. Here are some practical steps based on the latest research:
Know Your Levels
Simple tests for free and total testosterone can unveil your natural risk tendencies. This self-knowledge is crucial for informed decision-making.
Stress-Proof Your Business
Testosterone is linked to handling stress effectively, especially in competitive arenas. Implementing stress management strategies could safeguard your decisions and well-being.
Embrace Team Diversity
A team with a mix of risk profiles can strike the right balance between caution and courage, leading to more thoughtful decisions.
Lead with Awareness
Higher testosterone may influence you towards a more assertive leadership style. Recognize and adapt this trait to suit varied scenarios and team dynamics.
Cultivate Creativity
Risk-taking is the lifeblood of innovation. Understand your risk profile to nurture a company culture that prudently pushes boundaries.
Balance for Peak Performance
Optimal testosterone levels are key. A balanced diet, regular exercise, and good sleep are non-negotiables for maintaining your health and decision-making prowess.
Strategize Risk
With insights into your hormonal profile, fine-tune your risk management. Make sure each gamble is calculated and rests on solid business judgments.
By incorporating these insights into your entrepreneurial toolkit, you could not only improve personal performance but also drive your business towards greater innovation and success.
TL;DR
- Higher testosterone levels may contribute to traits advantageous in entrepreneurship, such as risk-taking and assertiveness, suggesting a biological aspect to entrepreneurial tendencies.
- Utilizing biological markers like testosterone levels in professional settings, such as venture capital funding decisions, raises ethical concerns and necessitates careful consideration.
- Entrepreneurs can benefit from understanding their own testosterone levels and maintaining optimal health through diet, exercise, and stress management to support decision-making and risk-taking capacities.
- Emphasizing the importance of team diversity in balancing risk profiles, a mix of cautious and courageous team members can lead to more thoughtful and successful entrepreneurial decisions.
Citation:
White, R. E., Thornhill, S., & Hampson, E. (2006). Entrepreneurs and evolutionary biology: The relationship between testosterone and new venture creation. Organizational Behavior and Human Decision Processes, 100(1), 21-34. https://doi.org/10.1016/j.obhdp.2005.11.001
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