“You are the average of the five people you spend the most time with,” - Jim Rohn
This axiom isn’t just motivational fluff. It’s practically gospel in the startup world, where no shit, it’s the people, stupid. Because the company we keep, more than anything, shapes how fast we can learn, the decisions we make, and ultimately, our chances for success.
Just ask Sara, a young founder building her first startup. Each day feels like a whirlwind of learning, analysis, and decision-making under profoundly uncertain conditions. But the good news is that she isn’t going at it alone. That’s because she prioritized social learning, creating as many opportunities as she could to learn from others. Through these interactions, Sara discovered new mindsets, behaviors, strategies and language that she instinctively begans to emulate. This is what famed-psychologist Albert Bandura calls Social Learning Theory.
In 1977, Bandura’s Social Learning Theory redefined our understanding of how we learn - not just through direct experience, but by observing and imitating others. Bandura shifted the paradigm from the reinforcement-based, behavioral learning to a more socially-driven cognitive model, in which learning can occur from simply observing a behavior and the consequences of that behavior. This is called vicarious reinforcement or what Sara calls “learning from others’ experiences as much as possible.”
The idea of social learning isn’t just another obscure psychological construct; it’s grounded in neuroscience too. Recent discoveries about mirror neurons suggest there may be biological underpinnings to social learning. These specialized brain cells activate both when we perform an action and when we observe someone else performing it. Picture a monkey learning to crack nuts with a hammer by watching another monkey. This isn’t just simple mimicry. It’s the same neurological process that some neuroscientists believe evolved human communication from simple gestures to complex language.
So for Sara, seeing another entrepreneur deftly navigate a challenge does more than just inform her; it shapes her brain, creating neural pathways that will guide her future actions. This blend of observation, internal rehearsal, and action forms the bedrock of learning in her brain.
Social Learning Theory, however, isn’t just psychology. It’s applied in management science to expand our understanding of how organizations learn, make-decisions, and grow. It’s applied in computer science, where algorithms use observation and reinforcement social learning to simulate the development of human intelligence. It’s even one of the theoretical frameworks behind Entertainment-Education - entertaining programming designed to have an educational or social benefit.
By understanding social learning and how to apply it, founders like Sara create opportunities for learning how to build and grow their company before needing to make a ill-fated, uninformed decision.
The Roots of Social Learning Theory
Imagine a young academic, Albert Bandura, observing a group of 1960s California children at play, noting their behaviors with a keen, almost anthropological eye. He wasn’t just seeing kids having fun; he was dissecting the mechanics of learning in action. These observations led Bandura to challenge the dominant theories of his time, which suggested that learning was a result of direct reinforcement with rewards and punishments dictating behavior. But Bandura saw something more nuanced. He saw that humans are inherently social creatures, and that our learning is deeply influenced by observing others.
One of Bandura’s most famous experiments involved children watching adults interact with a Bobo doll, a large inflatable clown toy that were the 1960s and 1970s version of a child’s punching bag. In the experiment, some children observed adults treating the doll aggressively, hitting and yelling at it, while others saw the doll being handled gently. When given the chance to play with the Bobo doll themselves, the children imitated the behaviors they had observed. Those who witnessed aggressive interactions were more likely to act aggressively towards the doll, highlighting how learning can occur through observation alone, without any direct reinforcement. This observation laid the foundation for Bandura’s 1977 comprehensive theory of social learning, which consists of several key components:
- Modeling: At the heart of Social Learning Theory is the concept of modeling. Humans learn by observing the actions of others and by imitating them. This isn’t mere mimicry; it’s a sophisticated process where we absorb not only behaviors but their underlying strategies and intentions.
- Reinforcement: While Bandura acknowledged the role of reinforcement, he expanded it beyond direct rewards and punishments. Vicarious reinforcement – seeing others rewarded or punished – also shapes our behaviors.
- Social Context: Bandura emphasized that learning doesn’t happen in a vacuum. Our social environment plays a critical role in shaping what we learn and how we apply it.
- Cognitive Processes: Unlike earlier theories that viewed learning as a purely behavioral process, Bandura’s model incorporates cognitive elements. He proposed that attention, retention, reproduction, and motivation are crucial for learning from observation.
- Imitation and Adaptation: Social learning, of course, goes beyond simple imitation. Effective learners adapt observed behaviors to fit their unique contexts.
Bandura’s work bridged the gap between behaviorism and cognitive psychology, offering a new understanding of how we learn from others and providing a new, more-comprehensive model for creating learning environments. This model proves to be particularly valuable for early-stage entrepreneurs who understand that learning from others is far more efficient and cost-saving than trial and error.
Social Learning Theory in Entrepreneurship
Many would consider entrepreneurship to be the ultimate individualistic pursuit. As Peter Thiel said, “Entrepreneurship is ultimately a journey of self-discovery”. However, in reality, being a founder is actually a deeply social endeavor.
Sara, our young entrepreneur, exemplifies this. Her path toward success is paved not just by her own brilliance and hard work, but by the actions and behaviors she absorbs from those around her. She’s tapped into the benefits of social learning by making it a central part of her learning and growth strategy.
Modeling
For entrepreneurs, modeling the behaviors of successful peers can provide a blueprint for their own actions. That’s one of the reasons Sara decided to participate in a startup accelerator - a mentor-driven program designed to accelerate her startup’s growth and sharpen her entrepreneurial skills. Surrounded by other founders, each on their own unique entrepreneurial journey, Sara is immersed in an environment rich with learning opportunities. Some founders are pitching to investors, others are refining their business models, and a few are navigating the complexities of finding product-market fit. Sara observes them closely, noting what works and what doesn’t.
Modeling in entrepreneurship goes beyond mere imitation; it’s about deeply understanding and internalizing successful strategies. For example, Sara watches a peer within the accelerator who consistently secures investor interest. She notices how he crafts his pitch, handles questions, and the confidence with which he presents his vision. These observations help her grasp the nuances of effective communication and investor relations, providing a blueprint for her own actions.
Beyond the accelerator, Sara regularly attends industry workshops, conferences, and seminars, where she has the opportunity to observe leading figures in her industry sharing strategies and insights. These events are invaluable for her growth, exposing her to a variety of successful approaches and emerging trends that she can incorporate into her own strategy.
Sara also makes it a point to connect with industry experts during these events, spending time observing how they navigate their respective fields. Whether at conferences, trade shows, or even online, she carefully watches how these experts address challenges and seize opportunities within her industry. This exposure deepens her understanding of the practical application of different strategies and broadens her perspective on what is possible with her own venture.
Sara also establishes an advisory board made up of industry and entrepreneur veterans, whose collective wisdom and strategic insights guide her through the uncertainty of go-to-market, fundraising, and scaling her startup. These advisors share their experiences, mistakes, and successes, and by asking specific questions about her challenges, Sara applies some of their advice directly to her startup.
Through evening networking events, Sara finds additional opportunities to learn. She actively observes how successful entrepreneurs present themselves, build relationships, and pitch their ideas. These observations inform her own approach to networking and business development.
By finding multiple social learning environments, Sara is able to model the behaviors and strategies of others, particularly those who have already achieved success. This lays a foundation for Sara’s to make better future decisions and avoid common pitfalls of the startup journey.
Reinforcement
In entrepreneurship, reinforcement is a powerful mechanism that shapes behavior by providing feedback from successes and failures - whether directly experienced or observed in others. When entrepreneurs see peers succeed or fail, they learn valuable lessons about what strategies might work or backfire in their own ventures.
For Sara, reinforcement is omnipresent but often subtle. Consider her approach to creating her product’s landing page. She experiments with two different designs and observes which one performs better in terms of user engagement and conversion rates. The successful version provides positive reinforcement, guiding her future design choices. This feedback loop is crucial for iterating and improving her product.
Customer feedback also plays a critical role in refining Sara’s product features. Positive feedback from customers reinforces successful iterations, while negative feedback helps her identify areas for improvement. By closely monitoring her metrics, Sara is able to better determine which strategies are working. And when she sees improved performance as a result of specific tactics, those actions are reinforced, guiding her future business development efforts.
Reinforcement isn’t limited to her own experiences either. Sara also learns vicariously by observing the outcomes of her peers’ efforts. When she notices another startup gaining significant media attention and funding after a successful product launch Sara analyzes the timing, tactics, and strategies that led to their success, This reinforces her understanding of what drives positive outcomes, helping her avoid potential pitfalls and informing her own decision-making.
To further expedite her learning, Sara organizes peer review sessions with her network to get feedback on her strategies. These sessions provide her with external perspectives, allowing Sara to reinforce practices that receive positive feedback while identifying areas for potential adjustment. This helps her validate her strategies and reinforce the behaviors that contribute to her success.
Through both direct and vicarious reinforcement, Sara is continuously refining her approach to learning to be a great founder. This ongoing process of reinforcement helps her to navigate the uncertainties of entrepreneurship with greater confidence and strategic insight.
Social Context
The entrepreneurial ecosystem - from startup incubators to networking events to online forums - provides a rich social context that can significantly influence founders’ learning and growth. Ecosystems serve as a fertile ground for social learning, where entrepreneurs like Sara can immerse themselves in environments that foster rapid learning and growth.
Take, for example, the coworking space where Sara spends her days. The space buzzes with energy, ideas, and collaboration among the entrepreneurs who work there. Conversations about market trends, funding opportunities, and technological innovations are the norm, offering Sara a wealth of knowledge and diverse perspectives. These interactions are not just casual exchanges; they’re ways for Sara to gain new insights, inspiration, and opportunities.
Sara understands the importance of being proactive in her engagement with the entrepreneurial community. That’s why she created a mastermind group where she regularly brings together other entrepreneurs to exchange ideas, challenges, and solutions in a semi-structured environment. Sara also hosts frequent dinner events where other founders come together to share their experiences while breaking bread, helping her to build a stronger network and create a collaborative environment where knowledge and ideas can be freely exchanged.
Community involvement also plays a significant role in Sara’s growth. She occasionally participates in local meetups, online forums, and social media groups where she discusses challenges, shares experiences, and gains insights from other founders. Here, she shares her experiences, asks for advice, and learns from the collective wisdom of the community.
Cognitive Processes
In the entrepreneurial journey, observing successful behaviors is just the beginning. Entrepreneurs must also retain and reproduce these actions for their own unique goals and contexts. This process involves complex cognitive functions central to learning and implementing new strategies effectively.
Sara understands that in order to engage deeply with what she observes, she must pay attention to relevant behaviors, retain this information, and reproduce it when needed. This is evident in her strategy sessions, where she recalls various successful approaches she’s seen and adapts them to fit her situation. Sara maintains a detailed log of her learnings in Notion, which she refers to as her “second brain.” In it, she records observations and reflections, helping her organize her thoughts and ensuring that valuable insights are not lost and readily-accessible for future use.
To frame all of her actions and decisions, Sara checks in on her motivation and goals frequently to ensure she always remains clear on her “why.” She establishes short, mid, and long-term goals that act as a framework for analyzing her choices, as well as measures that help her track her progress. By ensuring her team does the same and integrating them into a company-wide framework called Objectives and Key Results (OKRs), Sara is able to learn from her team and ensure that her team learns from each other as well.
Of course, Sara is always engaging in customer discovery to gain a deep better of her target market’s problems, pain points, and preferences. This information she gathers guides everything from her product development to marketing strategies, ensuring that her decisions are well-aligned with customer needs. And when trying something new, Sara utilizes her experience with design thinking to empathically tackle complex challenges, iterate on solutions, test prototypes, and gather user feedback on her offering.
Imitation and Adaptation
In the complex and nuanced world of building a startup, imitation alone is never enough. That’s why for entrepreneurs like Sara, it’s crucial to take strategies that may work in one setting and tweak them to suit her market and business model. For example, Sara observed a competitor’s effective customer retention strategy and recognized its potential. But instead of applying it directly, she tweaked the approach to resonate with her target customer, ensuring it aligned with the cultural nuances, needs, and constraints of her segments.
This began with developing a Minimum Viable Product (MVP) of a new loyalty program and testing it with a small segment of her customer base. The feedback she received from her MVP test allowed her to iterate on and refine the new program to better meet customer demands.
For certain types of new offers, Sara likes to run pilot programs so she can test customer’s responses in a more controlled environment than the live market. By starting small, she is able to assess the effectiveness of her offer without the risk of large-scale failuregiving her the flexibility to make adjustments before full-scale implementation.
With all of her new offers, Sara does her best to establish quick and efficient feedback loops with her team and customers. By continually gathering and analyzing feedback, Sara can refine her strategies in real-time, making necessary adjustments to ensure that they remain effective and relevant in the fast-changing landscape of her market.
Additionally, Sara regularly conducts competitive analysis. However, she doesn’t just look to imitate what her competitors are doing; instead, she identifies gaps and opportunities where she can adapt and innovate beyond what others are offering. This proactive approach ensures that her strategies are not only effective but also differentiated in the marketplace.
Sara employs A/B testing to refine her marketing messages and campaigns, ensuring her marketing efforts are both impactful and relevant to prospective customers. She experiments with different landing page designs to maximize conversions, taking the best-performing elements and adapting them to drive her goals. And she regularly conducts competitive analyses, identifying gaps and opportunities in her competitors action that she can adapt and innovate on what they’re offering.
Conclusion
For almost every founder, success hinges not just on their brilliant ideas but on their ability to learn, adapt, and grow. Sara’s commitment to maximizing this ability, infused with the principles of Social Learning Theory, illuminates a path forward that all entrepreneurs should take a closer look at. Because one of the greatest superpowers a founder can have is a deep commitment to rapid, iterative, experiential and social learning.
So if you’re standing at the precipice of your own entrepreneurial journey, take heed. Every interaction, every piece of feedback, every success and every failure you witness is a critical part of your founder learning journey. So embrace curiosity and openness. Ask questions, seek new perspectives, and never settle for the status quo. Surround yourself with a diverse network of mentors, peers, and advisors. And create a rich tapestry of knowledge sources - books, podcasts, workshops, and real-world experiences - to tap into the collective learning experiences of the people in your orbit.
Experiment boldly. Don’t fear failure; fear stagnation. Conduct crazy experiments, explore new innovations, and take a chance on uncharted marketing strategies. Just use every result, positive or negative, as a data point in your quest for improvement. Regularly take time to reflect on your journey. What have you learned? How have you grown? What can you do better? Adapt your strategies based on these reflections, because continuous improvement is the key ingredient in every entrepreneurial success.
Picture yourself not just as a founder but as a lifelong learner, someone who thrives on the insights gained from every experience, and takes on all facets of life with a growth mindset. Seek out a new mentor, join a mastermind group, attend a workshop, or create your own approach to expanding your circle of dreamers and change-makers.
Now close your eyes and envision your future self, five years down the road. See the successes, the milestones, and the growth. Now, think about the path that led you there. What did you learn along the way? How did you learn it? You’re likely to see that you didn’t do it alone. It took a village.
As the famous African proverb says, “If you want to go fast, go alone. If you want to go far, go together.”
