Fear and Entrepreneurship: A Review and Research Agenda

Abstract

A systematic review of the entrepreneurship literature on fear published up to 2014 highlights several key characteristics. First, the predominant focus in research examining the emotion of fear in entrepreneurship is on the specific concept of fear of failure. However, this literature shows a lack of precision in the conceptualization and operationalization of this construct. The impact of the experience of fear on individual cognition and behaviour can be beneficial as well as detrimental. Despite this dualistic nature, to date, fear is examined as only a barrier to entrepreneurial behaviour. This review reveals a clear dichotomy in the literature, with significantly more focus on fear as a trait that distinguishes between people than as a temporary state that is commonly experienced by many people. Defining fear of failure as a context‐specific phenomenon, this paper explains the importance of focusing on the temporary cognitive and emotional experience of fear and use conceptual observations as a platform to develop an agenda for future research.

Entrepreneurial role models, fear of failure, and institutional approval of entrepreneurship: a tale of two regions

“…We do not argue that fear of failure reflects a general risk aversion. Nor do we claim that fear of failure prevents people to start a firm by hook or by crook (for a fruitful critical discussion, see Hayton et al, 2013 andHayton, 2015). We rather regard the formation of fear of failure as a contextspecific process that is affected by social interactions with entrepreneurs in the local environment and can negatively affect entrepreneurial propensity.…”

Is Fear of Failure a Psychological Barrier an Empirical Study on Occupational Choices

“…Since, there is a general tendency to question entrepreneurial outcomes as either success or failure, FoF is often included in entrepreneurship research. Thus, entrepreneurs are motivated towards doing their best and endowed with an idea of avoiding failure in business life through effective opportunity identification, selection or development, maximum performance on entrepreneurial tasks and action (Cacciotti, and Hayton, 2015). Moreover, such a fear is regarded as a psychological barrier for entrepreneurial intent and action.…”

“…Therefore, FoF could produce both approach and avoidance behaviours. Despite significant efforts towards a new understanding which instills an idea of every failure is a learning opportunity, negative connotation is prevailing in the field (Cacciotti, and Hayton, 2015). Career intention literature has been shaped particularly around entrepreneurial intention and an intention of being a paid employee.…”

Entrepreneurial Cognition

“…While some research has indicated that an anti-failure bias is manifest in a fear of failure and that a fear of failure usually leads to inaction (Alon and Lerner 2008; Wagner and Stenberg; for a review, see Cacciotti and Hayton 2015), some individuals appear to be able to overcome their fears and go after potential opportunities. 1 These actions are vital in creating wealth for individuals, organizations, and national economies Sarasvathy 2001).…”