Overcoming Fears of Success and Failure in Poverty Entrepreneurship
Low-income entrepreneurs often face the fear of failure. However, they also encounter the fear of success due to its associated costs and uncertainties. This under-researched barrier to growth needs attention.
Study Findings
A study by Michael H. Morris and colleagues explores these fears and provides recommendations to help entrepreneurs overcome them.
Fear of Success
Fear of success manifests in procrastination, self-sabotage, and avoidance of key decisions that hinder business growth. This fear is common among disadvantaged entrepreneurs.
Five Key Priorities
To address these fears, the study authors propose five key priorities:
1. Providing Entrepreneurial Role Models
Exposing entrepreneurs to individuals who have successfully navigated business ownership challenges can inspire and reduce perceived success risks.
2. Early Entrepreneurship Education
Introducing entrepreneurship early on, emphasizing experiential learning, allows individuals to experience success beyond profitability.
3. Mentorship Programs
Experienced entrepreneurs can guide business founders in understanding and evaluating success costs and benefits.
Overcoming Fears of Success and Failure in Poverty Entrepreneurship
Fear of Success
Fear of success is a real and under-researched barrier to growth for low-income entrepreneurs. It can manifest in procrastination, self-sabotage, and avoidance of key decisions. This fear is particularly prominent among disadvantaged entrepreneurs due to the perceived risks and uncertainties associated with success.
Five Key Priorities
To address these fears, Michael H. Morris and colleagues propose five key priorities:
- Providing Entrepreneurial Role Models: Exposing entrepreneurs to successful business owners can inspire them and reduce their perceived risks.
- Early Entrepreneurship Education: Introducing entrepreneurship early on, with a focus on experiential learning, allows individuals to experience success in tangible ways.
- Mentorship Programs: Experienced entrepreneurs can guide business founders in understanding and evaluating the costs and benefits of success.
- Venture Creation in Workforce Development Programs: Incorporating venture creation into workforce development programs enables participants to envision entrepreneurship as a viable career path.
- Flexible Microfinance Programs: Microfinance programs should be tailored to the needs of disadvantaged entrepreneurs, with investments tied to incremental progress towards success goals.
Playbook for Policymakers and Support Organizations
The authors provide a playbook to assist policymakers and organizations working with disadvantaged entrepreneurs. By focusing on these key priorities, these stakeholders can help individuals overcome their fears and embrace entrepreneurship as a path out of poverty.
Conclusion
Understanding the fears of success and failure is crucial for promoting entrepreneurship among disadvantaged individuals. By implementing the recommended priorities, policymakers and support organizations can empower entrepreneurs to overcome these barriers and achieve success. Entrepreneurship can be a powerful tool for reducing poverty and creating economic opportunity, and by addressing the fears associated with it, we can help more people reach their full potential.