Recession Mind-Set Holding Back Growth, According to Find the Edge Article

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A new article on business website Find the Edge discusses how the prospect of economic stagnation is in danger of becoming a self-fulfilling prophesy.

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'We know thoughts influence behaviour, and the danger is that our beliefs become a self-fulfilling prophecy

Business leaders across the UK should pull together to avoid creating a self-fulfilling prophesy that prevents economic recovery, a new article on Find the Edge says.

The article, written by occupational psychologist Robert Millar, suggests a change in the mind-set of some business leaders could help to tackle some of the issues currently hampering growth.

He said: 'At present, there is a widely held belief that the probability of growth is low, and the UK may even descend into a triple dip recession. This very idea has the effect of promoting narrow, survival-oriented behaviours, and duly raising anxiety levels in the very people we need to inspire to deliver economic growth.

'We know that increased stress tends to lower cognitive functioning, especially higher order functions like creativity and decision-making.

'We also know thoughts influence behaviour, and the danger is that our beliefs become a self-fulfilling prophecy (the Pygmalion effect).'

To counteract the process, he suggests business leaders should avoid excessive cautiousness, ensure bonus systems reward long-term thinking, and ensure that good economic news stories receive as much exposure as bad ones.

He also stressed the importance of businesses avoiding falling into the trap of thinking the current economic situation is unsalvageable over the next few years:

'The reality of the position is likely to be somewhere in-between, with plenty of scope for growth in some markets, and challenging times in others.'

Robert Millar has run his own business psychology for ten years, and has over 20 years' experience working with management teams in both the private and public spheres. More information on him can be found here: http://www.findtheedge.co.uk/expert-panelist/robert-miller.

Speaking about the article, Kenny Goodman – who is founder of Find the Edge – said: "It's easy to be negative about the economy, but we also need to recognise that this is part of the problem.

"While these are undoubtedly challenging times for many businesses, there's no reason to throw in the towel just yet, when growth is more than possible."

The full article can be viewed here: http://www.findtheedge.co.uk/innovation/business-psychology/the-psychology-of-recession-and-implications-on-growth.

Find the Edge is a business website designed to give business leaders a competitive edge. Expert panellists regularly upload insightful and relevant articles to keep the site fresh.

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Kenny Goodman
Find the Edge
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