Tali Sharot is the director of the Affective Brain Lab (funded by a fellowship from the Wellcome Trust) and a faculty member of the department of Cognitive Perceptual and Brain Sciences at UCL, London. She investigates how motivation and emotion determine our expectations of the future, and impact our everyday decisions, memories and ability to learn. Her book, The Optimism Bias: A Tour of the Irrationally Positive Brain, based on Sharot’s original research demonstrates the surprising biological basis for optimism. She, in fact, suggests that 80 per cent of all people hold optimistic beliefs, and view the future with an optimism bias that makes them believe life will be better in the future (in terms of their health, careers or personal relationships) even if there isn’t sufficient basis for such a forecast. Her research holds special significance for entrepreneurs, many of whom are on the higher side of the optimism spectrum in any case. MYB caught up with her to find out how entrepreneurs can maintain a balance between the lure of optimism and the necessity of knowing ground realities: 

Q: You say that to make progress, people need to be able to imagine alternate realities, and that we need to believe we can achieve them. You refer to this as mental time travel, and also that positive expectations enhance the chance of survival. Clearly, that is the upswing of optimism. Is it also why optimism is so closely linked to entrepreneurship because much of the above sounds like a day in the life of an entrepreneur?
A: People have found that entrepreneurs are more optimistic than other people. But, the question is are you more likely to become an entrepreneur if you are positive, or are you likely to become more optimistic because you are an entrepreneur? Well, both of those are true. In our research, we found that yes, entrepreneurs are generally more optimistic than others, and when you compare their optimism before and after they became entrepreneurs, they tend to become more optimistic as a consequence of being entrepreneurs. 

Does that bring up the nature-nurture debate as far as optimism is concerned? Do we become less, or more optimistic as a result of our life experiences? Or, are we biologically hardwired? 
Well, it seems like both those notions are true. For example, in twin studies on optimism, we have found that 30 per cent of the optimism bias is genetically determined. That is the normal across personality characteristics in general. Take stress, for example. How we respond to stress is genetically determined. This response to stress influences optimism. We have found that stress reduces optimism. On the other hand, it has also been found that lack of optimism increases stress. So, just as with depression, scientific research has found that there is an interaction between genes, and your environment—that you might have a genetic vulnerability to depression which is then triggered by an event. Optimism is the mirror image of depression, and so it is influenced both by your genetic composition, and your life experiences. 

Entrepreneurs should understand that it isn't always true that the more optimistic you get, the higher your chances of success."

If life experiences can influence our optimism, can we consciously work to mould the architecture of our brain, and become more or less optimistic, if we tried? 
There isn’t a lot of research on that. Dr. Martin Seligman is one of the academics who talk about this. His research shows that the way you interpret failure can be worked on. For example, one can interpret failure as a permanent failing; that a project failed because you believe you are a bad engineer.  Or, you can take something you failed in, and interpret that as a consequence with a flexible, contextual reason—that the failure happened because you got the equation wrong, or hadn’t made the right preparation. Over time, training the brain to think that way can help. And, the reverse is true for optimism. If you interpret your success to believe that it happened because of your inherent personality traits, it makes you more optimistic of success in the future. Seligman has trained people on interpretation. So, yes, there is some ability to change that. 

What is the one lesson for entrepreneurs from the optimism bias? Are there ways in which this understanding can positively reflect in their management styles—in terms of planning, strategy, team building and motivating employees? 
Actually, when it comes to entrepreneurs, it’s important to see the negative side of the optimism bias. In any case, entrepreneurs are high up on the optimism scale. Entrepreneurs should understand that it isn’t always true that the more optimistic you get, the higher your chances of success. At some point, the success-optimism relationship starts reversing. It’s important therefore for entrepreneurs to be aware that you might be misinterpreting your calculations. When confronted with actual data that might be contrary to their plans and objectives, very optimistic entrepreneurs are likely to dismiss the data. Their optimism bias might lead them to believe that the likelihood of something not working out doesn’t apply to them as much as it does to others. This can compromise their ability to plan effectively—to budget accurately for how long things will take, or how much they will cost. It is wise then for entrepreneurs to be strongly aware of their biases. It’s interesting. It is possible to hold on to your optimism which I most recommend, and also be aware of it.  It’s like a visual illusion. When you first see it, the illusion is all you see. Then, somebody explains it to you, and you know the reason for the illusion happening. You can still see the illusion but you know why it is so.