Academic journal article Ife Psychologia

The Fear of Business Failure and Government's Role in Supporting Entrepreneurs in Nigeria

Academic journal article Ife Psychologia

The Fear of Business Failure and Government's Role in Supporting Entrepreneurs in Nigeria

Article excerpt

Introduction

Many scholars have written widely on entrepreneurship and its potency to generate economic growth and to engender economic development, thus, underscoring the quintessence, significance and relevance of entrepreneurship in the development of any given economy. Entrepreneurship acts as a critical factor for accelerating economic development of a country (Schumpeter, 1934). Other notably economists, such as Bagehot (1873) and Gurley and Shaw, (1955, 1960 and 1967) have also long recognized the role of entrepreneurship in economic development. This is on the premise that a vibrant entrepreneurial climate provides new jobs, increases competitiveness, and produces novel goods and services (UN, 2013). Entrepreneurship is a dynamic process of creating wealth (Kuratko, 2009). It is a process that goes beyond generating ideas; it further involves conceptualization, enterprise creation, commercialization and business growth (Dianco-Adetayo, 2011). In a developing country like Nigeria, the role of entrepreneurship is more important for the creation of self-employment opportunities and reduction of unemployment situations. However, in Nigeria, the primary barrier to entrepreneurship activities is often not so much a scarcity of capital, labour or land as it is a scarcity of both having the courage to start up an enterprise and an enabling business environment. It is the task of the government through it policies, laws and guidelines to enable potential entrepreneurs overcome the fear of business failure and providing a conducive business environment.

The Nigerian government's contributions towards entrepreneurship development in the past years have been wide and deep (see illustration 1). This is because the government recognizes that entrepreneurship is the key to economic growth. Its efforts so far have been geared towards increasing the supply of man- power capable of undertaking business creation which accelerates employment generation and economic development (Awe, 2010). However, despite government interventions in promoting entrepreneurship, the fear of failure in business even before startup stage is imminent in potential entrepreneurs (Ola, 2016). Due to this, it is evident that Nigeria is yet to attain the ranks of a developed economy, neither has the effectiveness of entrepreneurs nor the demand for real entrepreneurship increased (Oko & Ndubuisi, 2015).

What is the fear of business failure?

The fear of failure often referred to as Atychiphobia or Kakorraphiophobia from a psychological point of view is the abnormal, unwarranted, and persistent fear of failure (Success psychology). It is also a crippling block to the success of entrepreneurs. The fear is abnormal and is often within the individual i.e. the potential entrepreneur. The persistency of the fear however suggests that it is selfaccentuating. In other words, it all points to a continual mind-set of beliefs that sustains the fear of failure which bears negative effects on entrepreneurship activities. According to Bosma, Jones, Autio and Levie (2008), the fear of failure is common among entrepreneurs. However, the interpretation of the definitions in the economic sense i.e abnormal and persistence exonerates the perception as a possible and plausible situation that can be halted and changed completely in order to promote entrepreneurship. The experience of fear of failure can be described as the appraisal of threats in evaluative situations with the potential for failure (Conroy, 2001). Drawing on psychological and socio-psychological theories, there are certain factors that influence the emergence, behavior and performance of entrepreneurs in various environments. For instance, Richard Cantillon and John Stuart Mill's psychological theory of entrepreneurship, otherwise called risk taking theory (RTT) considers entrepreneurship as a mentality to take chance or calculated risk, because people taking a very big risk also have a great responsibility (Alam & Hossan, 2003, Sexton and Bowntown 1983). …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.