Optimism, a personality trait found in approximately 80% of people, often promotes persistence, cooperation, and ambition—traits that are generally beneficial in life and in traditional work life.. Research has shown that optimists in paid work tend to earn more than their pessimistic colleagues.. However, when it comes to entrepreneurship, this rosy outlook may not be so beneficial, writes PsyBlog.

U Focus. Technologies has its own Telegram channel. Subscribe so you don't miss the latest and most exciting news from the world of science!

In a study published in the European Economic Review, researchers found that pessimism can be beneficial for entrepreneurs: pessimistic business owners earn on average 30% more than their optimistic counterparts..

The study highlighted the challenges entrepreneurs face, including lower earnings, longer working hours and higher risks compared to employees. Optimists often do not fully understand these difficulties, which can lead to risky ventures and poor decisions..

Dr Chris Dawson, first author of the study, said: " We as a society glorify optimism and entrepreneurial thinking, but when the two come together, it's worth questioning reality." He cited popular media as an example of how excessive optimism often leads to misguided endeavors..

Professor David de Meza, co-author of the study, also highlighted the social costs of failed businesses. He noted that while policymakers often promote entrepreneurship as a driver of economic growth, they may overlook the personal and financial consequences of failure. “You can’t underestimate the personal and social consequences of failed businesses, and that’s what optimists do.”. Policy makers should not encourage the wrong types of startups,"

This study challenges the traditional perception of optimism as a universally beneficial trait.. While it may contribute to success in a structured environment such as paid work, research shows that pessimism gives entrepreneurs a decisive advantage by offering a more grounded and cautious perspective.

By tempering ambition with realism, pessimistic entrepreneurs can avoid bad decisions and maximize financial returns.. According to some economic theories, overconfidence, often associated with optimism, leads to high expectations and risky behavior.. Overconfident people are more likely to overestimate their abilities and underestimate risks, especially when making financial decisions.. This further supports the idea that the pragmatic approach of pessimism may be better suited to high-risk situations such as entrepreneurship.

Previously, Focus wrote that scientists have learned how to recognize unusually smart people. There is an opinion that smart people can be distinguished at first glance, but scientists went further and decided to highlight clear character traits that are inherent in people with increased intelligence.

Focus also wrote about how to identify those with “fluid intelligence”. Fluid intelligence is quite different from its more standard form, and scientists have identified character traits by which its carriers can be identified.