A recent study conducted by Michael H. Morris, a professor at the Keough School of Global Affairs at the University of Notre Dame, has brought attention to the undervalued fear of success experienced by many low-income entrepreneurs. This research, recently published in Business Horizons, aims to offer insights and suggestions to help these entrepreneurs overcome their fear and progress towards a pathway out of poverty.
Fear of Success: An Understudied Phenomenon
Low-income entrepreneurs frequently struggle with the fear of failure when establishing their businesses, a well-documented challenge. However, the less explored fear of success can also pose a significant barrier to their growth and development. According to Morris, this fear can create a behavioral obstacle that hinders individuals from navigating the uncertainties of starting a new business.
Recommendations for Overcoming Fear
The study presents five key recommendations to address the fears encountered by disadvantaged entrepreneurs. These recommendations are based on insights gained from focus groups conducted with participants from the Urban Poverty and Business Initiative program, primarily consisting of people of color, women, and individuals from underprivileged backgrounds.
The five recommendations are as follows:
– Providing entrepreneurial role models to showcase different paths to success
– Teaching entrepreneurship early through experiential learning
– Offering mentorship to help founders understand and address the various costs and benefits of potential success
– Positioning venture creation as an option in workforce development programs
– Developing more flexible and holistic microfinance programs tied to incremental progress
The authors of the study, including Morris and his colleagues, have created a playbook that they believe can assist policymakers and individuals working with disadvantaged entrepreneurs.
Looking Towards the Future
Ultimately, the study aims to support educators, policymakers, and stakeholders in applying these recommendations to assist underprivileged entrepreneurs in overcoming their fears and embracing entrepreneurship as a viable pathway out of poverty. By addressing the often overlooked fear of success, it is hoped that these entrepreneurs can be better supported in their journey towards prosperity and growth.
The findings of this study offer valuable insights into the unique challenges faced by low-income entrepreneurs and provide a roadmap for creating targeted support mechanisms to address these challenges. This research has the potential to fuel a more inclusive and supportive entrepreneurial ecosystem.