Mitigating entrepreneurial fear of failure: a literature review

Psychological problems pose a significant threat to the entrepreneurial process, including increasing fear of failure and reducing the probability of starting a business. Consequently, substantial research found that entrepreneurial fear of failure reduces the intention to start a business and negatively impacts on entrepreneurial behaviour and the entrepreneurial process. Considering the adverse effects of fear of failure on entrepreneurial development, and subsequent economic development, it is imperative to investigate strategies that mitigate entrepreneurial fear of failure. Thus, this literature review study explores the strategies that can reduce fear of failure among entrepreneurs. Secondary research was conducted using online databases to comprehensively review literature on entrepreneurial fear of failure. The findings show that entrepreneurial education and training programs, social and peer support, cultural and institutional support, mindset and personal development and perceived knowledge and skills play a significant role in mitigating entrepreneurial fear of failure. Drawing from the study findings, the research recommends that entrepreneurship education programs focus on developing personal traits such as self-efficacy, resilience and optimism and addressing psychological problems faced by entrepreneurs. Furthermore, policymakers should develop failure-tolerance policies, and the entrepreneurial ecosystem should create a culture that views failure as part of the entrepreneurial process to motivate aspiring entrepreneurs. Moreover, the entrepreneurial ecosystem should create a supportive and collaborative environment that fosters a positive inclination towards entrepreneurship.