Fear of failure stalks the world of the entrepreneur, from losing key clients to running out of money. For entrepreneurs, courage is not the absence of fear, but the ability to persist in spite of it. These fears are well-founded: Studies suggest that roughly 75% of ventures fail within 10 years (see U.S. Bureau of Labor Statistics data on firm survival rates here).
How Fear Helps (and Hurts) Entrepreneurs
Interviews with 65 entrepreneurs reveal the most common fears that startup founders share and also, somewhat surprisingly, that these fears can be helpful. While fear often does inhibit action, some fears can motivate us to work harder. The study found that worries concerning opportunity costs, financial security, or their ability to obtain funding were all positively associated with an entrepreneur’s persistence. In contrast, when entrepreneurs worried about the potential of their idea or their personal abilities, they became less proactive. Motivation from fear can also bring higher levels of stress, with potentially negative health consequences. So while fear is a natural state for an entrepreneur, the ability to anticipate and manage it is a vital skill.