Starting a business can be a daunting task for anyone, but for low-income entrepreneurs, the fear of failure is a well-documented phenomenon. However, a new study from the Keough School of Global Affairs at the University of Notre Dame sheds light on another, less explored fear that plagues these entrepreneurs— the fear of success. This fear of success can be just as paralyzing as the fear of failure, as it brings with it unknown costs and challenges that can hinder growth and progress.
The lead author of the study, Michael H. Morris, a professor at the Keough School, explains that it is crucial to address these fears in order to help disadvantaged entrepreneurs navigate the uncertainties of starting and growing a business. The study, published in the Business Horizons journal, outlines five key recommendations to help entrepreneurs overcome their fear of success and move out of poverty.
Morris and his co-authors conducted focus groups with participants from the Urban Poverty and Business Initiative program, a program offered by the McKenna Center for Human Development and Global Business at Notre Dame. The participants, who were predominantly people of color and women from underprivileged backgrounds, shared their experiences and fears as they embarked on their entrepreneurial journeys.
Disadvantaged entrepreneurs face unique obstacles that their more privileged counterparts do not, such as lower literacy levels, a scarcity mindset, and limited access to finance. These challenges, coupled with the fear of failure and now the fear of success, can create significant barriers to success for these entrepreneurs.
The fear of success, while less studied, can have detrimental effects on a business. It can lead to procrastination, self-sabotage, and a reluctance to make key decisions that could propel the business forward. To address this fear, Morris and his colleagues offer five recommendations:
1. Providing entrepreneurial role models to showcase different paths to success.
2. Teaching entrepreneurship early with a focus on experiential learning.
3. Offering mentorship from experienced entrepreneurs.
4. Incorporating venture creation into workforce development programs.
5. Developing flexible microfinance programs tied to success goals.
These recommendations serve as a playbook for policymakers and support organizations working with disadvantaged entrepreneurs. By implementing these strategies, educators, policymakers, and stakeholders can help these entrepreneurs overcome their fears and embrace entrepreneurship as a viable pathway out of poverty.
In conclusion, while the fear of success may seem counterintuitive, it is a very real barrier for low-income entrepreneurs. By addressing this fear and providing the necessary support and resources, we can empower these entrepreneurs to achieve their full potential and create a better future for themselves and their communities.
