Entrepreneurs are less likely to use statistics and data to make decisions
The majority of small business owners rely on gut instinct when it comes to making decisions relating to their business, a study from T-Mobile has found.
The research indicated that 56 percent of entrepreneurs in the UK did not rely on data, statistics or research to make business choices but preferred to go with their gut instinct. Over four fifths (81 percent) of business owners surveyed believed that they were naturally optimistic – however, 23 percent felt they were too busy to make positive changes in their business and 20 percent admitted to being worried about making changes.
While most entrepreneurs would rely on their gut instinct, a small percentage – six percent – have admitted they would consider using psychics or horoscopes in order to make a business decision. The study also found that 17 percent of entrepreneurs aged below 30 would make a choice by flipping a coin.
Business psychologist Mamta Saha commented on the research, saying: “Typically, small business owners have greater freedom in creating their own parameters and structures. This gives them a lot more room for freedom of thinking, which is often influenced by ‘gut instinct’ or ‘intuition’. These feelings are closely linked to passion and commitment to what you believe in, which can lead to an inner clarity or decisiveness.”
It has been argued in the past that small businesses and their owners are more able to show initiative and be flexible due to their smaller size and infrastructures. Phil McCabe of the Forum of Private Businesses commented: “While sound planning is certainly good practice, one of the strengths of small business owners is that they can think on their feet and are more flexible when opportunities emerge.
“With the economy in recovery mode there’s no room for complacency or fear of the new. Clearly, gut instinct – combined with practical common sense and a willingness to use all available resources – plays an important role in the decision making process of many successful entrepreneurs.”