Low-income entrepreneurs often face the fear of failure when starting their own businesses, but a new study sheds light on another overlooked obstacle: the fear of success. This fear of success can hinder growth and keep entrepreneurs trapped in poverty.
The study, led by Michael H. Morris from the Keough School of Global Affairs at the University of Notre Dame, offers five key recommendations to help entrepreneurs overcome this fear and move towards success. These recommendations include providing entrepreneurial role models, teaching entrepreneurship early with experiential learning, offering mentorship, integrating venture creation into workforce development programs, and developing flexible microfinance programs tied to success goals.
The research, published in Business Horizons, highlights the importance of addressing these fears to prevent them from becoming behavioral roadblocks that impede business growth. Morris and his co-authors conducted focus groups with participants from the Urban Poverty and Business Initiative program, where they found that disadvantaged entrepreneurs, predominantly people of color and women from underprivileged backgrounds, face unique challenges such as lower literacy levels and limited access to finance.
Fear, whether of failure or success, is a common experience for these entrepreneurs and can lead to procrastination, self-sabotage, and missed opportunities for growth. By implementing the recommendations outlined in the study, policymakers and support organizations can better assist disadvantaged entrepreneurs in overcoming their fears and achieving success in their businesses.