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TOM@RICHHABITS.NET
The difference between thriving and struggling entrepreneurs often comes down to their daily habits. While talent, opportunity, and resources play a role, research consistently shows that specific behaviors distinguish successful (rich) entrepreneurs—those with significant financial success and sustainable businesses—from less successful (poor) entrepreneurs who struggle to generate consistent income or growth. Drawing on independent third-party research and Tom Corley’s Rich Habits research, this article explores key habit differences in goal setting, self-improvement, time management, financial discipline, networking, and resilience that shape entrepreneurial outcomes.
1. Goal Setting and Long-Term Vision
- Rich Entrepreneurs: Successful entrepreneurs set specific, measurable, and challenging goals to guide their ventures. A 2015 study by Locke and Latham in American Psychologist found that goal-setting enhances performance by increasing motivation and focus. Rich entrepreneurs prioritize long-term objectives, breaking them into actionable steps. For instance, a 2018 study in Journal of Business Venturing showed that entrepreneurs who set clear, long-term goals achieve higher growth rates, as they align daily actions with strategic visions.
- Poor Entrepreneurs: Struggling entrepreneurs often lack structured goals, focusing on short-term survival rather than scalable strategies. The same Journal of Business Venturing study noted that entrepreneurs without defined objectives are more likely to stagnate, as they fail to prioritize tasks that drive growth.
- Key Difference: Rich entrepreneurs use goal-setting as a roadmap, regularly reviewing progress, while poor entrepreneurs operate reactively, missing opportunities for strategic advancement.
2. Continuous Self-Improvement
- Rich Entrepreneurs: Successful entrepreneurs prioritize lifelong learning, dedicating time to reading, attending workshops, or seeking mentorship. A 2016 study in Entrepreneurship Theory and Practice found that entrepreneurs who engage in continuous learning are more innovative and achieve higher financial performance. Mentorship is particularly critical: a 2019 meta-analysis by Unger et al. in Journal of Business Research showed that entrepreneurs with mentors are 1.5 times more likely to succeed, as they gain insights into market trends and avoid common pitfalls.
- Poor Entrepreneurs: Struggling entrepreneurs rarely invest in self-improvement, limiting their exposure to new ideas or skills. The Entrepreneurship Theory and Practice study noted that entrepreneurs who neglect learning struggle to adapt to market changes, reducing their competitiveness.
- Key Difference: Rich entrepreneurs treat learning as a daily discipline, while poor entrepreneurs often skip it, hindering their ability to innovate or pivot.
3. Time Management and Productivity
- Rich Entrepreneurs: Successful entrepreneurs are deliberate with their time, minimizing distractions and prioritizing high-impact tasks. A 2017 study in Strategic Entrepreneurship Journal found that effective time management correlates with higher business performance, as entrepreneurs allocate time to strategic planning and relationship-building. They also limit non-productive activities, such as excessive social media use, to maintain focus.
- Poor Entrepreneurs: Struggling entrepreneurs often lack time management systems, spending hours on low-value tasks. A 2020 study in Small Business Economics showed that poor time allocation leads to burnout and reduced productivity, as these entrepreneurs fail to prioritize tasks that drive revenue or growth.
- Key Difference: Rich entrepreneurs structure their days for maximum impact, while poor entrepreneurs are often distracted or disorganized, diluting their efforts.
4. Financial Discipline
- Rich Entrepreneurs: Successful entrepreneurs practice frugality and disciplined saving, reinvesting profits into their businesses or assets. The Millionaire Next Door (1996) by Stanley and Danko found that self-made millionaires, including entrepreneurs, live below their means, saving at least 15-20% of their income. A 2021 study in Journal of Financial Planning confirmed that entrepreneurs who automate savings and avoid impulsive spending achieve greater financial stability and business scalability.
- Poor Entrepreneurs: Struggling entrepreneurs often live paycheck to paycheck, spending on non-essential items. The Journal of Financial Planning study noted that entrepreneurs who fail to save or invest surplus income struggle to weather financial setbacks or fund growth initiatives.
- Key Difference: Rich entrepreneurs build wealth through disciplined saving and investing, while poor entrepreneurs deplete resources with unchecked spending.
5. Networking and Relationships
- Rich Entrepreneurs: Successful entrepreneurs build diverse, strategic networks to access resources, partnerships, and opportunities. A 2018 study in Journal of Business Venturing found that strong social networks correlate with higher business success, as they provide access to knowledge and capital. Granovetter’s 1973 “strength of weak ties” theory further supports this, showing that diverse connections enhance opportunity discovery.
- Poor Entrepreneurs: Struggling entrepreneurs often limit their networks to peers with similar financial challenges, reducing access to new ideas or resources. The Journal of Business Venturing study noted that weak networking habits correlate with lower innovation and growth potential.
- Key Difference: Rich entrepreneurs actively cultivate relationships with successful individuals, while poor entrepreneurs remain isolated, missing collaborative opportunities.
6. Positivity and Resilience
- Rich Entrepreneurs: A positive mindset and resilience are hallmarks of successful entrepreneurs. Fredrickson’s Broad & Build Studies (1998, 2000) demonstrated that positivity enhances cognitive flexibility and risk tolerance, enabling entrepreneurs to navigate setbacks. A 2019 study in Entrepreneurship Research Journal found that optimistic entrepreneurs are more likely to persist through failures, viewing them as learning opportunities.
- Poor Entrepreneurs: Struggling entrepreneurs often harbor negative or self-limiting beliefs, which reduce resilience. The Entrepreneurship Research Journal study showed that pessimism correlates with higher rates of business abandonment, as these entrepreneurs struggle to recover from setbacks.
- Key Difference: Rich entrepreneurs maintain optimism and resilience, fueling persistence, while poor entrepreneurs are often derailed by negativity or doubt.
Critical Considerations
While habits are critical, systemic factors like access to capital, education, or market conditions can influence outcomes. A 2018 study in Journal of Business Venturing noted that socioeconomic barriers can limit entrepreneurial success, suggesting that habits alone may not fully bridge the gap between rich and poor entrepreneurs. Additionally, cultural or regional differences may shape how habits are applied, as highlighted in a 2020 study in Small Business Economics.
Conclusion: Habits as the Engine of Success
The habits of rich entrepreneurs—strategic goal setting, continuous learning, disciplined time management, financial frugality, robust networking, and resilient optimism—create a foundation for sustainable success. Poor entrepreneurs, by contrast, often lack these structured behaviors, perpetuating financial and operational struggles. Research from American Psychologist, Journal of Business Venturing, and other peer-reviewed sources underscores that intentional habits are critical drivers of entrepreneurial outcomes. By adopting these behaviors, aspiring entrepreneurs can shift their trajectory, proving that success is less about circumstance and more about consistent, evidence-based practices.
Tom Corley is an accountant, financial planner and author of “Rich Kids: How to Raise Our Children to Be Happy and Successful in Life”, Effort-Less Wealth, Change Your Habits Change Your Life, Rich Habits Poor Habits and “Rich Habits: The Daily Success Habits of Wealthy Individuals.”
