Why Do People Often Underestimate Their Own Abilities?

Summary: This article addresses a pretty ubiquitous but rarely dissected problem: why do so many people—no matter their background or field—tend to underestimate their own skills or potential? From work interviews to international trade negotiations, self-perception often gets in the way. Using a blend of personal experience, industry anecdotes, and actual regulatory documents from different countries and organizations (think OECD, WTO, and more), we’ll figure out the causes, look at real-life mistakes (including my own blunders), and tease apart how “verified trade” standards differ globally. Expect a few detours and rants along the way—just how real exploration feels.

The Core Problem: Why Can't We See Ourselves Clearly?

Here’s what kicked this off for me: a few years ago I was helping a mid-sized exporter in Shanghai apply for an OECD-backed trade certification. Guy running the place was razor-sharp, had decades of experience, but absolutely convinced his English wasn’t up to scratch for the compliance interviews. Spoiler: his English was fine—the real issue was a classic and nearly universal one. He just didn’t believe in his skillset. Sound familiar?

This kind of self-undervaluing isn’t just about nerves or lack of info. There’s a cocktail of biases, upbringing, cultural standards, plus a few harsh realities baked in. Big deal, right? Actually, yes—especially in areas requiring certifications, competitive negotiation, or cross-border “verified trade” where every notch of confidence or hesitation gets amplified on paperwork, in meetings, or under scrutiny from regulators.

Step-by-Step: What Makes Us Underestimate Ourselves?

Step 1: Self-Bias and the Imposter Trap

The “imposter syndrome” isn't new, but real data now backs up how pervasive it is. A study from the PLOS ONE journal (2020) found 70% of professionals reported feeling like a fraud at some point, especially in roles with high compliance like trade authentication or export management.

In my work onboarding new exporters, the most common phrase ever: “I know there are people far more qualified than me.” The irony is that regulatory agencies—say, the EU’s DG TAXUD—are so hungry for solid, clear documentation and basic compliance that reliable, honest participants almost always pass but remain convinced they’ll fail.

Step 2: Cultural Conditioning

Let me go off script for a second. Back in 2021, I shadowed a negotiation between a German and a Japanese multinational over agricultural exports. The Germans (as expected) walked in with slick PowerPoints, confident in their numbers—even overconfident. The Japanese, despite decades of expertise, downplayed nearly every achievement, prefacing with “we’re not experts, but...” Only when the OECD moderator—the actual regulator—prodded did it become obvious the Japanese team had a deeper, more nuanced grasp of compliant trade flows.

This is classic collectivist culture at play. A Harvard Business Review analysis (source here) explains how modesty is a built-in value in many export-heavy countries. The catch? When regulatory bodies require “demonstrated competence,” these understatements come back to bite—sometimes resulting in unnecessary audits or extra paperwork.

Step 3: Skewed Feedback Loops

Real talk: half the time, you’re not “learning” from feedback, you’re reacting to whoever has the loudest voice in the room. When you’re operating in regulated industries, negative feedback is everywhere. Even the USTR’s Trade Barrier Report occasionally highlights U.S. exporters underestimating technical compliance skills (page 27, 2019 report for reference).

At one roundtable I joined, a Mexican logistics provider admitted, “When customs flagged us, I felt like we'd failed. Turns out, it was a computer glitch, not our paperwork at all.” That sense of ‘failure’ can deeply skew how a team sees its abilities, even when it's not based on reality.

(Yes, that’s an actual customs audit snapshot. You can feel the stress in the room, honestly.)

Real World Example: A vs. B in “Verified Trade” Certification

Late 2022, I supported a Romanian metalworks manufacturer aiming for “verified origin” status to ship to South Korea. Here’s where country standards really mess with self-assessment:

1. Romania uses the EU's self-certification approach—trusting companies to ‘know their stuff’ and submit paperwork with only spot checks.
2. South Korea’s KCS (Korea Customs Service) mandates third-party verification for most trade deals, and firms must submit credentials and proof of evaluator training.

The result? The Romanian team underestimated their ability to prepare “verified” docs, worrying it would be too hard. But when forced to do a mock Korean audit (actually much tougher than the EU’s), they passed all phases. Their own perceived lack of expertise: almost entirely in their heads.

“Our EU paperwork should be enough for Korea, right?”
— Romanian Export Ops Manager
Turns out, yes. Just a few tweaks for Korean language and document formatting was all that was needed.

Expert View: How Do Regulators Perceive This?

I once asked a senior analyst at the WTO (in an interview posted here) what pattern they saw in self-appraisal for certified trade. His answer:

“Most regulated parties either overestimate how complex the process is, or underestimate their readiness. We need them to trust, but verify. Honest, competent submission is what we want. The paperwork isn’t a trick, it’s a dialogue.”

Verified Trade Standards: How Countries Compare

Let’s get concrete. Here’s how various countries/organizations define and enforce “verified trade” standards—naming the law, the regulator, and a flavor of how tough/extensive each process is.

What Should You Do If You’re Underestimating Yourself?

Messy as it sounds, here’s what actually worked for me and the clients I’ve helped (cue montage of flustered exporters and panicked compliance teams):

• Run through a mock audit—it’s eye-opening. Often, people realize their “gaps” are just formatting quirks, not missing expertise.
• Check official checklists—OECD and WCO (World Customs Organization) both publish step-by-steps that can de-mystify compliance. Example: WCO's Practical Implementation Guide.
• Ask regulators directly—I’ve emailed EU and US customs officers for clarification; responses are often more straightforward than paranoid internet forums imply.
• Swap stories—no, seriously. Sharing “what almost got us flagged” builds real confidence faster than reading manuals.

If you slip up, let’s be real: it’s normally one fix away, not a career-ending disaster. (Though that didn’t stop me from losing a week of sleep after mis-filing a Korean FTA form back in 2022—see, even the “experts” get jumpy.)

Conclusion: Everyone Undervalues Themselves—But Systems Reward Progress

To wrap up: the world is full of quietly competent people who second-guess themselves, from solo consultants to multinational compliance teams. Regulated industries, especially those requiring “verified trade,” tend to amp up those insecurities. But as the real stories and expert opinions here show, more often than not, the flaws you imagine are exactly that—imagined. When in doubt, ask, check, simulate, and don’t be afraid to reach out to regulators. They’re real people (mostly), and as WTO docs confirm, what matters most is honest, persistent engagement—not perfection.

Next Step: If you’re currently facing your own “am I really qualified?” moment—especially for international certifications or trade compliance—grab the official checklist, try a dry run, and, if you dare, tell your story on an industry forum. You’ll be amazed who chimes in to say, “Wait, I thought I was the only one.”

Author background: 12+ years in cross-border trade consulting, frequent guest at OECD/WCO working groups, prone to panicking before major regulation changes, lousy at karaoke but can audit a compliance file in three languages.