It’s a thin line that divides confidence and arrogance

Entrepreneurs must build on their confidence and understand the illusory nature of the ego — this is essential for a healthy entrepreneurial mindset.

Over the last few years, we have seen this storyline playing out repeatedly — an entrepreneur building a startup by pursuing an idea with confidence, scaling up by presenting their vision to investors/customers, then slowly falling down a slippery slope of shortcuts in trying to showcase better numbers, faster growth, higher returns, etc., and finally ending up badly bruised and defeated.

In all these sagas, the common thread is the manifestation of confidence, ego, and arrogance. Let’s try and understand the differences between these concepts, as it is crucial to know each of them for an effective entrepreneurial mindset.

Confidence is a positive trait that reflects self-assurance, belief in one's abilities, and a sense of trust in oneself. In entrepreneurship, confidence is essential for taking calculated risks, making decisions, and leading others. Confident entrepreneurs have a strong belief in their ideas and capabilities, which enables them to navigate challenges, inspire their team, and persevere in the face of setbacks. Confidence is rooted in self-awareness, competence, and a realistic assessment of one's skills and knowledge.

Ego, often referred to as ‘ahamkara’, represents a sense of self-identity and individuality. While a certain degree of ego is natural and necessary for personal growth and self-preservation, excessive ego can hinder entrepreneurial success. In the context of entrepreneurship, ego-driven behaviour is characterised by an inflated sense of self-importance, a need for recognition, and a focus on personal gain at the expense of others. Ego can lead to a lack of openness to feedback, poor collaboration, and an inability to adapt. It can hinder our ability to learn from mistakes, and limit our potential for growth.

Arrogance goes beyond ego, and is characterised by an exaggerated sense of superiority and entitlement. Arrogant entrepreneurs exhibit a dismissive attitude towards others, belittling their ideas, and contributions. They often display a lack of empathy, disregard for differing perspectives, and an unwillingness to learn from others. Arrogance can create a toxic work environment, alienate stakeholders, and hinder long-term success.

Read | If only we knew what makes an entrepreneur

Differentiating confidence from ego and arrogance is crucial for entrepreneurs to maintain a healthy balance. Confidence is an important attribute that fosters growth and success, while ego and arrogance can hinder progress, and lead to negative outcomes. Cultivating self-awareness, practicing humility, valuing collaboration, and remaining open to feedback are key to striking the right balance and nurturing a constructive entrepreneurial mindset.

“The moment you become aware of the ego in you, it is strictly no longer the ego but just an old, conditioned mind pattern. Ego implies unawareness. Awareness and ego cannot coexist.” says Eckhart Tolle, German self-help author. Tolle, in his book ‘The Power of Now’, writes that “The ego is a part of your mind that tries to control your thinking and behaviour. It’s that voice inside your head. It can be characterized as the devil or angel on your shoulder. It is the voice that analyzes what’s going on around you, comments on your interactions, dwells on the past, speculates about the future, complains, likes, or dislikes things, and makes you question yourself in moments of doubt. This internal voice is the ego. The ego gives you an interpretation of the world, not a true reflection. We tend to think that these thoughts and experiences define us, and that our ego is who we are — after all, it’s coming from inside our own head, so who else could it be? But, in fact, the ego is not our true Being. Our true Being is the essence of who we are, separate from our mind and body”.

In the Bhagavad Gita, ‘Aham’ refers to the concept of ‘ahamkara’, which can be translated as ‘ego’ or ‘self-identity’. ‘Ahamkara’ represents the identification of the individual self with the body, mind, and personality. It is the sense of ‘I’ or ‘me’ that often leads to attachments, desires, and self-centeredness.

The Gita addresses the concept of ‘ahamkara’ and provides guidance on how to transcend its limitations. It teaches that true self-realisation and spiritual growth come from recognising the illusory nature of the ego and expanding one's awareness beyond the individual self.

The Gita encourages individuals to overcome the ego by cultivating selflessness, detachment, and a sense of surrender to a higher power or divine consciousness. It emphasises the importance of recognising one's true self, the eternal soul or ‘Atma’, which is beyond the temporary identification with the ego.

In the context of entrepreneurship, the teachings of the Gita regarding ‘ahamkara’ can be valuable for entrepreneurs to develop a balanced and self-aware approach to their work. By recognising and overcoming ego-driven motivations such as personal glory, power, or material success, entrepreneurs can foster a more inclusive and purpose-driven mindset. This can lead to ethical decision-making, collaboration, and a focus on creating positive impact beyond personal gain.

Madan Padaki is Co-founder, Global Alliance for Mass Entrepreneurship, and President, TiE.

Disclaimer: The views expressed above are the author's own. They do not necessarily reflect the views of DH