Psychologist Carol Dweck introduced the idea of a “growth mindset” through her work in education. Dweck and her research team noticed that while some students struggled to move forward after a small failure, others were able to recover and keep trying.
Although the growth mindset was first used to improve classroom learning, it can also help in other areas—especially in business. This article explains what a growth mindset is, why it matters for your business, and how to build one to support your team and company goals.
What is a growth mindset?
A growth mindset means believing that intelligence and skills can grow over time. Instead of thinking our abilities are fixed, a growth mindset sees the chance for improvement through learning, effort, and support.
Dweck’s research highlighted this idea. She and her team found that when students were praised for effort instead of intelligence, they were more likely to take on challenges, stick with hard tasks, and believe they could improve.
Many people think that intelligence and talent are things you’re born with and can’t change. But focusing on effort and the right approach can help people grow and do better over time.
Growth Mindset vs. Fixed Mindset
A fixed mindset is the opposite of a growth mindset. People with a fixed mindset believe their intelligence, talent, and abilities are set in stone—you either have them or you don’t. As a result, they often avoid difficult tasks, give up easily, and think trying hard means they’re not good enough.
How you think—whether you have a fixed or growth mindset—affects how you handle failure. Someone with a fixed mindset may believe they failed because they’re not good enough, so they give up. Someone with a growth mindset sees failure as a chance to try a new approach and improve their skills.
How to Apply a Growth Mindset in Business
In a 2008 speech at Stanford University, Dweck explained how a growth mindset is important for business leaders. She said that a growth mindset supports teamwork, reaching business goals, and encouraging employees.
According to Dweck, leaders with a fixed mindset are often more focused on looking smart and may not believe that people can change. On the other hand, leaders with a growth mindset value learning, are open to feedback, and believe in helping both themselves and others grow.
Andrea De Jager-Jackson, who runs a coaching and business culture company, has seen this in her work. “Leaders with a growth mindset reward learning and curiosity, not just perfection,” she said. “They try new things, speak up, and take smart risks. Fixed-mindset leaders, in contrast, often avoid risk, keep things the same, and hold back innovation and progress.”
In an article for Stanford’s alumni magazine, Dweck talked more about how these mindsets show up in business. Here are four key ways to build a growth mindset at work.
1. Accept Mistakes
Dweck used the fall of Enron as an example of what happens when companies value talent over learning. At Enron, employees felt pressure to hide problems because mistakes were seen as a sign of weakness.
Companies with a growth mindset create an environment where mistakes are seen as learning moments. Instead of hiding them, employees feel safe to admit mistakes and improve from them.
Daniel Olexa, a leadership coach, explained that companies with a growth mindset are more willing to explore new ideas. “They see mistakes not as failures, but as feedback,” he said. “If mistakes aren’t happening, then it’s likely no new ground is being explored.”
Paul Robson, an entrepreneur and business coach, agrees that mistakes often lead to growth. “There’s a well-known quote, ‘I’ve failed over and over, and that’s why I succeed,’” Robson said. “You usually have to get things wrong before you get them right.”
Sally Zimney, a speaker and coach, added that practice leads to skill—and mistakes are part of that process. “You get better through action, not by avoiding failure. The more you do, the more you learn.”
2. Focus on Skill Development
Leaders with a growth mindset invest in training and development. This helps build teams that are engaged and effective—not just focused on ticking boxes during performance reviews.
Dweck’s research found that employees in fixed-mindset companies were more afraid of failure. This often led to dishonest behavior and low trust between staff and leadership.
In companies with a growth mindset, leaders were more positive and rated their teams as more creative and cooperative.
Katie Manasse, a coach and business consultant, said it’s important not to lock your thinking about what your team can or can’t do. “If you have a growth mindset as a leader, you’ll help your team develop one too,” she said. “Give your team a chance to grow their skills. It encourages honest conversations and stronger results.”
3. Celebrate Effort, Not Just Talent
Dweck shared a story from her time with the Blackburn Rovers soccer team. Some young players didn’t want to train hard because that might make them look less talented. The culture valued natural talent over hard work.
Dweck advised the team to focus on ongoing improvement instead. The same idea applies in business. Instead of only praising natural ability or fast results, recognize those who work hard to improve.
Olexa explained that top performers in sports and business succeed because they work hard and stay focused—not just because they’re gifted. “Tell a young Michael Jordan or Steph Curry they weren’t born for greatness, and you’d be wrong,” he said. “They practiced with purpose. They weren’t born champions—they became them.”
Jonathan Logan of Greenlit Growth Strategies added that overvaluing natural talent can hold people back. “Thinking you either have it or you don’t creates limits,” he said. “In business, as in sports, training with intention beats relying on raw skill alone.”
4. See Challenges as Learning Opportunities
Dweck’s research found that people with a growth mindset saw hard tasks differently. For example, she described a young boy who said, “I love a challenge” when faced with a difficult problem. Instead of giving up, he saw it as a puzzle to solve.
In business, this means helping your team see problems as chances to learn and grow—not as signs of failure. Encourage open discussion about challenges and treat them as a chance to test new ideas and improve.
De Jager-Jackson explained it clearly: “When people see problems as growth opportunities, they stop feeling afraid and start being creative. They go from thinking, ‘I’m failing’ to thinking, ‘I’m learning.’”
The Benefits of a Growth Mindset in Business
A growth mindset brings clear advantages to your business:
- Better results during hard times: Every business has problems, but those with a growth mindset see these moments as chances to get better.
- More creative thinking: A growth mindset helps teams think outside the box and find new solutions.
- Ongoing learning: Teams with this mindset always look for ways to improve and stay ahead.
- Stronger responsibility: A growth mindset encourages people to own their results—good or bad—and use them as learning tools.
How Leadership Shapes the Growth Mindset
Tee Gwena, managing partner at Transora Partners, said that business leaders with a growth mindset tend to build stronger, more valuable companies. “They treat every challenge as a step forward,” he said. “Solving problems helps move the company to the next level.”
Business owners and managers can create this kind of culture by encouraging learning, accepting mistakes, and helping team members grow their skills.
Here are some ways to start:
- Promote from within instead of always hiring outside.
- See the potential in every team member.
- Value curiosity and learning over resumes or past achievements.
Focusing on growth from the inside gives your business an edge over those that stick to what they already know.
Introducing a Growth Mindset to Your Workplace
Changing your company’s culture takes time, especially if there’s resistance. But with the right steps, the rewards are worth it.
Here are some tips to help:
- Get leaders on board: Gwena said mindset changes start at the top. Leaders need to fully believe in growth and set up systems to reward progress.
- Show the team what’s possible: Zimney said employees must see real chances for growth—not just promises. “Leaders should help people see who they could become, not just who they are now.”
- Rethink failure: Olexa explained that failure is often just a matter of time. “If you miss a goal, use it to improve your plan or offer support—not to place blame.”
- Invite new ideas: While promoting from within is helpful, sometimes you need new energy. Gwena suggested that bringing in fresh leadership can offer a new outlook and help drive change.
- Make learning part of everyday work: Logan recommended praising growth during meetings and helping leaders coach instead of control. “Let ‘I don’t know yet’ be the beginning of learning,” he said.
A growth mindset in business leads to more learning, stronger teams, and long-term success. When leaders and employees embrace this way of thinking, they build a culture that supports improvement at every level.
