The founders of LinkedIn, Reid Hoffman compared entrepreneurship with the action of jumping off a cliff and in the mid-air, assembling a plane downwards. Entrepreneurship is closely related to risk and the boldness to take up that risk differentiates success from failure. That needs activation of courage, which is not an implication of lack of fear but the ability to act in the presence of fear to achieve a worthy course. The paper reviews the literature on entrepreneurship and fear to get a better understanding of it (Cacciotti & Hayton, 2015). The fear to fail is a negative factor in entrepreneurship because fear in itself is a barrier to progress. However, some literature makes an opposite position by viewing fear as a positive factor that creates motivation and therefore affects decision making on the choices of goals and lead to the application of more effort.
The paper purports, therefore, that the notion of fear is the greatest inhibitor of success comes with its own reservation because of some reasons. One of the reason lies with the manner of in which the fear factor is portrayed and measured. For two, research has limited itself only to the decision of business startups, ignoring the aspect of people having to go through the fear to fail and being able to live with it in the whole process of entrepreneurship (Cacciotti & Hayton, 2015). In that case, if the notion of fear is the main inhibitor of success is taken in its entirety, people will be constrained in a fixated position of realizing success with the task presented to him/her as the only option to avoid failure. It is also important to appreciate that the result of fear to a practicing entrepreneur may have a completely different outcome from that of a new entrepreneur. Therefore, the paper purports that the fear to fail in entrepreneurship may cause entrepreneurs to be more cautious and increase soberness and responsibility in the process of decision making (Cacciotti & Hayton, 2015).
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The paper is closely related to the notion that employees suffer from lack of self-efficacy when it comes to entrepreneurship in the sense that it changes the perspective of tackling the problem. That is, being able to find the balance between fear and feeling self-sufficient both as a negative aspect and also as a positive aspect. In as much as the feeling of fear or lack of self-efficacy is a hindrance, it is also important to understand that that same factor will instigate more sober decision and a considerate amount of caution and preparation when diving over a cliff and eventually make up a plane on the way down.
With a sample of people from 28 countries, the study investigated the kind of variables that are significantly connected to the decision of a person to be an entrepreneur (Arenius & Minniti, 2005). The study goes ahead to link up the decision to both economic and demographic characteristics. The study then argues that the variables that are perceived are critically related to the creation of new ventures of entrepreneurship in all genders and countries. The findings provided suggestions that nascent entrepreneurs significantly rely on biased or subjective perceptions instead of objective expectations. Owing to that, perceptual variables therefore, need to be added in entrepreneurial behavior’s economic models. The Arenius & Minniti, (2005) study provides resourceful insights in the formulation of policies and necessary actions to be employed in improving self-efficacy of the working class. Thus, solutions and the angle of policymaking will be towards the direction of tackling subjective perceptions more than the objective ones.
It is also important to understand that self-efficacy is largely contributed by the culture of a society. A study was carried out on the manner in which culture molds the effects of lack of self-efficacy on entrepreneurship. Data from the Global Leadership and Global Entrepreneurship and Effectiveness of Organizational Behavior which studied 42 countries was used. The study investigated the contingency of the effects of a person’s fear to fail and lack of self-efficacy on the national culture and practice (Wennberg, Pathak & Autio, 2013). The observation from the study indicates that the positive effect on entry’s self-efficacy is under the moderation of institutional collectivism’s cultural practices and the orientation of performance. On the other hand, the consequences of fear and lack self-belief with the new entrants, is under the moderation of collectivism of institutions’ cultural practices plus the avoidance of uncertainty.
Therefore, as amicable solutions will be sought on the best ways to tackle the lack of self-efficacy, it will be easier to handle the problems at hand because of the understanding of the influence of culture on self-efficacy. Therefore, it will be important to first disengage the individuals from the cultural ropes tying them around the limiting factors. Great companies like Microsoft were created through limitless space of imagination and decision making. When cultures draw the boundaries of imaginations, the promising companies and organizations arising from entrepreneurship tend to remain ideas rather than realities. There is, therefore, a great need to break the cultural barriers creating fear and sucking self-efficacy away from individuals with limitless ideas and opportunities. Creation of a culture of bold individuals is the best way to go because the society will benefit as a whole, in the long run.
Youth unemployment is a common phenomenon and almost every country across the globe face the sting of youth unemployment. Any country that is serious about her economy realizes that the problem of youth unemployment bears a close relationship between the risks of unemployment and social capital. The study discovers and distinguishes between two social capital dimensions. They include; Friendship networks and occupational networks of contacts. There is a big connection between ego’s unemployment and friends’ unemployment. Also, it was found that the occupational networks of contact reduce the risks of unemployment in all groups (Hällsten, Edling&Rydgren, 2017). This study unravels the situation of the processes of getting employment. It is true that the use of merit as a qualification of success is no longer the norm in the society. People have to have contacts and networks for them to be hooked up with employment. The research also generates the reality of influence of culture in the rate of unemployment. Friend’s unemployment creates a fake sense of security and the feeling of contentment reducing the incentive to break out of the cocoon and go out there to venture. This step is very much important especially with the current situation of increasing rates of unemployment. It will be important to empower the youth to get their own jobs and create their own path to success, hence helping both the society as a whole, and themselves.
Pretest and posttest involve obtaining a pretest outcome measure before administration treatment or any corrective measure, which is followed by post-test on the measure after the corrective actions have been administered. Pretest and posttest designs must be inclusive of control groups (Bergman, 2015). Pretest and posttest face the limitation of threats to the internal validity. They are useful in research along with surveys which is a statistical field that studies the sampling of units of individuals from a population and the related techniques of survey data collection. Surveys are useful in the sense that they guarantee better sampling and accuracy in data collection and processing. Surveys are also cheap because it takes up more people in less time and because of its nature to use voluntary efforts from respondents, surveys are cheap per respondents (Moser &Kalton, 2017). A typical survey is consisted of a sample or in some cases, full population, a data collection method like a questionnaire and questions that can statistically be analyzed.
Boosting the levels of self-efficacy among people and especially among the working class is useful in the sense that it will boost the level of confidence that people have on themselves (Kolvereid, 2016). In the process, they will venture into entrepreneurship with positivity that they will succeed. That will consequently lead to a considerate reduction in the rate of unemployment in societies (Morgan &Sisak, 2016). That will lead to high rate of growth in the economies of the world and lead creation of more jobs. In that case, the society, especially the working class, should be encouraged to have more confidence in themselves as they dive into the valley of entrepreneurship over a cliff (Kuratko, 2016).
References
Arenius, P., &Minniti, M. (2005).Perceptual variables and nascent entrepreneurship. Small business economics , 24 (3), 233-247.
Bergman, E. M., de Bruin, A. B., Vorstenbosch, M. A., Kooloos, J. G., Puts, G. C., Leppink, J., ... & van der Vleuten, C. P. (2015). Effects of learning content in context on knowledge acquisition and recall: a pretest-posttest control group design. BMC medical education , 15 (1), 133.
Cacciotti, G., &Hayton, J. C. (2015). Fear and entrepreneurship: A review and research agenda. International Journal of Management Reviews , 17 (2), 165-190.
Hällsten, M., Edling, C., &Rydgren, J. (2017).Social capital, friendship networks, and youth unemployment. Social science research , 61 , 234-250.
Kolvereid, L. (2016). Preference for self-employment: Prediction of new business start-up intentions and efforts. The International Journal of Entrepreneurship and Innovation , 17 (2), 100-109.
Kuratko, D. F. (2016). Entrepreneurship: Theory, process, and practice . Cengage Learning.
Morgan, J., &Sisak, D. (2016).Aspiring to succeed: A model of entrepreneurship and fear of failure. Journal of Business Venturing , 31 (1), 1-21.
Moser, C. A., &Kalton, G. (2017). Survey methods in social investigation .Routledge .
Wennberg, K., Pathak, S., &Autio, E. (2013). How culture moulds the effects of self-efficacy and fear of failure on entrepreneurship. Entrepreneurship & Regional Development , 25 (9-10), 756-780.
