The fear of entrepreneurial failure

Nowadays, the Spanish Totally early-stage Entrepreneurial Activity (TEA) is 6.4%, a figure that is below the European average (8.7%). Entrepreneurial activity should be easier with today’s technological advances, finance, remote working possibilities, logistics and communications. But why are there so few entrepreneurs?

The word “fear” can be defined as “a suspicion or apprehension of obtaining the opposite of what one wants.” This is why we might consider fear as the main factor to answer our question. 

Fear of failure

Starting a business is very risky, as there is no guarantee it will be a success. For that reason, failure is the most common fear among entrepreneurs: the possibility of the project not being succesful.  

David Boada, founder of the online marketing agency Kaizen 2D, explains that “in Spain, unlike what happens in the United States, failure is stigmatized at all levels, whether you want to pursue a business venture or stay a wage earner.” 

But the fear of failure is not the only reason. 

Other factors 

During the years of compulsary education no one explains what a company is, or how to set up one. The concept of enterpreneurship is technically unknown. In the media, as well as in society and education systems, entrepeneurship is painted as an unattainable goal. 

This goes hand in hand with experience. The lack of opportunities prevents many to get involved with enterpreneurship and to learn how it works. So, taking the leap is something most people do not even consider. However, a first-hand experience changes everything. 

Other setbacks in the business world might be the limited resources available when a business is just starting, together with Government policies. Some periods will be profitable, and others will have a tighter cash flow, for which the sense of security of a regular job and a paycheck at the end of the month might become more appealing than long-term success. If Governments created policies to promote innovation and progress, this situation could change. 

Sources: MediumEntrepreneur, World Economic Forum  

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