cour·age ˈkər-ij. ˈkə-rij. : Strength of mind to carry on in spite of danger or difficulty. ~Merriam-Webster Dictionary
Being an entrepreneur is often romanticized as a pathway to success, freedom, and financial prosperity. However, beneath the surface lies an undercurrent of fear that often prevents individuals from taking the leap into entrepreneurship. This fear hinders potential entrepreneurs, disallowing them from experiencing the fulfillment and potential that comes with starting their own business.
The Statistics: A Reality Check
Before delving into the reasons behind the fear of becoming an entrepreneur, it is crucial to shed light on reality. According to data compiled by the Small Business Administration, around 20% of small businesses fail in their first year, and only about 50% survive beyond the five-year mark. These statistics are sobering and pretty depressing and can provoke anxiety in individuals who dream of embarking on an entrepreneurial journey. Yet, small businesses comprise 99.9% of businesses in the United States and are a thriving part of our economy and culture.
Moreover, research conducted by the Global Entrepreneurship Monitor (GEM) indicates that fear of failure is the primary obstacle to entrepreneurship. In countries like the United States, fear of failure prevents nearly 24% of adults from pursuing entrepreneurship.
The Fear Factors: Understanding the Sources
- Financial Insecurity: One of the most prevalent fears associated with entrepreneurship is the fear of financial insecurity. Starting a business often requires individuals to invest their own resources, and the possibility of losing those resources can be daunting. Additionally, the lack of a stable income during the early stages can amplify anxiety.
- Fear of Failure: Failure is an essential part of the entrepreneurial journey, but it is also a significant source of fear among potential entrepreneurs. Entrepreneurs face the risk of their ideas not being well-received, their products or services failing to gain traction, or their business model not being sustainable.
- Social and Peer Pressure: The fear of judgment and societal expectations can also discourage individuals from pursuing entrepreneurial endeavors. Society often places more value on the security of traditional jobs, emphasizing stability and reliable income over the uncertainty of starting a business.
Embracing the Risk: Overcoming the Fear
While acknowledging the fears associated with entrepreneurship is crucial, it is equally important to explore ways to overcome them. Here are some strategies to mitigate fear and embrace the risk:
- Review Your Foundation: Your business foundation is comprised of what you value most. Core values, Core Purpose, and your BHAG are the first keys to success. When those fears start to creep in, come back to your foundation and remember Why you’re doing what you’re doing.
- Make decisions on all 3 factors – “Time, Money, and Energy”: Entrepreneurs are good at looking at 2 of these factors and often ignore the third. They get caught up in the ”money” and don’t look at what it is truly costing them
- Education and Coaching: Acquiring knowledge about entrepreneurship, business operations, and financial management can help alleviate fear and increase confidence. Seeking guidance from experienced coaches, and mentors who have already navigated the challenges of entrepreneurship can provide invaluable support.
- Planning and Research: Conducting thorough market research, creating a solid business plan, and identifying potential risks and challenges can significantly mitigate the fear of failure. Adequate preparation is key to increasing the chances of success.
- Building a Supportive Network: Surrounding oneself with like-minded individuals and creating a supportive network of entrepreneurs can provide emotional support and collaborative opportunities. Engaging with people who understand the journey and challenges can help alleviate the fear of entrepreneurship.
- Taking Calculated Risks: While fear may never completely dissipate, taking calculated risks allows potential entrepreneurs to push their boundaries and explore their potential. Instead of succumbing to fear, embracing it as a driving force for growth and innovation can be an empowering approach.
- Delegate to Elevate: Just because you own a business doesn’t mean you need to know everything about everything on how to run your business. You’re not good at bookkeeping? Outsource to someone who’s going to help you with taxes in the long run and avoid some major mistakes down the road. You don’t like social media? Hire someone who knows how to advertise and promote your business, ultimately making you connections for more business. If you’re not even sure what you need to outsource, connect with a business coach to help with your mindset and business structure. This will help you focus on what you want to do in your business what you’re really good at, and what charges you. Remember you’re not alone in this!
Conclusion:
Becoming an entrepreneur comes with its own set of fears and uncertainties. However, recognizing that fear is a natural part of the process and taking proactive steps to overcome it can pave the way for success. I’d love to come alongside you on your journey, so book a free consultation with me to see if business coaching is something that could help you overcome your business fears.
While the statistics may be sobering, they should not deter aspiring entrepreneurs from chasing their dreams. Remember to take courage, trust the process, trust your foundation, and trust those around you. Take a deep breath, you’ve got this.
~Judy