The Existential Side of Entrepreneurship and Why it Matters for Human Progress and Flourishing

Photo by Clark Tibbs on Unsplash

What shapes entrepreneurial flourishing in a society? While economists typically focus on policy, structural, and institutional factors, my work as an existential psychologist points to the fundamental human need for meaning as a more deeply personal force. This existential drive influences not just individual entrepreneurial ambitions but also our capacity to build a culture that champions entrepreneurship's vital role in advancing human progress.

As I discussed in a previous newsletter, meaning in life represents our motivation to understand our place in the world and make a significant impact within it. Our distinctly human cognitive capacities enable us to contemplate our purpose, envision future possibilities, and strive to leave an enduring impact. Research consistently shows that maintaining a sense of meaning predicts enhanced mental and physical well-being and success across various life domains.

The relationship between meaning and positive life outcomes that involve self-regulation and motivated action led my colleague, Dr. Andrew Abeyta, and me to develop the concept of existential agency – the belief that one can actively find, maintain, and restore meaning in life despite inevitable challenges. This construct goes beyond simply believing life has meaning; it captures our capacity to consciously and deliberately engage with the world to create significance. Existential agency reflects the ability to not just passively experience meaning, but to actively shape it through self-determined action. When individuals possess strong existential agency, they are inspired to improve their lives, motivated to pursue goals, and resilient in the face of distress and uncertainty – qualities that prove vital for entrepreneurial pursuits. Indeed, existential agency is a strong predictor of entrepreneurial motivation among individuals with start-up ambitions. 

But here's where it gets even more interesting: The relationship between existential agency and entrepreneurship extends beyond individual motivation. In our research, my colleagues and I also observed that when people believe they have the power to find, maintain, and restore meaning, they're more likely to believe in entrepreneurship's potential to solve major societal challenges. In other words, existential agency appears to help people value entrepreneurship as a force for human progress.

An existential lens helps us better understand how entrepreneurship can advance human progress. When we view entrepreneurship as a meaningful pursuit that contributes to human flourishing, we are better able to create a culture that not only recognizes entrepreneurial contributions but channels them toward solving big problems and improving the world. This is because the existential quest for significance is typically social; most of us find meaning through making positive contributions to society. For instance, research my colleagues and I conducted reveals that when individuals are focused on meaning, they are more motivated to pursue prosocial goals and behaviors.

This extends well beyond the realm of business creation. The entrepreneurial mindset – characterized by proactive initiative, creative problem-solving, and meaning-driven engagement – enriches many domains of human endeavor. We see this entrepreneurial spirit at work when employees innovate within established organizations, when artists develop novel approaches to their craft, when educators design creative teaching methods, or when individuals build community initiatives and nonprofit organizations to address societal needs. 

In a world facing increasingly complex challenges, we need entrepreneurs more than ever. Business scholars are becoming more interested in the psychology of entrepreneurship, examining how personality traits, life experiences, and sociocultural factors influence entrepreneurial ambitions and capabilities. This research has revealed important insights about the characteristics and conditions that foster entrepreneurial goals and success. However, the existential psychology of entrepreneurship plays a central role that deserves greater attention. Understanding how meaning, existential agency, and related variables fuel entrepreneurial and progress-focused thinking and action can help us cultivate this inspired orientation across diverse life pursuits. Meaning isn't just a personal matter – it's a vital force that drives societal advancement.

Have a great weekend!

Clay