Fuck-up nights and fail culture — in the startup scene, failure doesn't seem to be a problem. Upon closer inspection, however, the fear of failure can also inhibit startup activities. According to KfW In Germany, this fear is even more pronounced than elsewhere. Early imparting of entrepreneurial and economic knowledge can help.
Do. Fail. Learn. Repeat. — Failure is part of starting a business. Get up and keep going. That's often the message in the startup scene. Nevertheless, the fear of failure inhibits many potential founders in Germany. The reasons for this are manifold: primarily the fear of financial burden and personal disappointment, but concerns about legal consequences and the threat of unemployment also play a major role. The fear of stigmatization, on the other hand, is hardly significant. While the stigmatization of being a failed entrepreneur does exist in Germany, according to KfW Research not perceived as a broad social phenomenon.
So how do you overcome the fear of failure?
The number of start-up activities in Germany has been declining for years. This is partly due to the strong labor market—which has also been the case for years. However, innovative start-ups are important for Germany as a business location to remain competitive internationally.
To make starting a business more attractive again, more intensive teaching of entrepreneurial and economic knowledge could help potential founders better assess the risk of failure and reduce their fears to some extent—an educational foundation that should be established early on. This approach is being pursued by, among others, GO! start-up initiative, which was launched by the Federal Ministry for Economic Affairs and Energy and aims to instill more entrepreneurial spirit in schools. Initiatives such as the Startup Teens can make an important contribution in this context.
To the complete KfW research document “Germany as a location for start-ups: countering fear of failure with better basic economic education.”
