Fear of Failure Among Entrepreneurs in Asia

Entrepreneurship can be an important driver of innovation, employment, and economic growth, but the decision to start a business often involves significant uncertainty. One of the major factors that can discourage people from becoming entrepreneurs is the fear that their business may fail.

According to the Global Entrepreneurship Monitor (GEM), fear of failure is measured among people who believe there are good opportunities to start a business but say they would not do so because they are afraid of failing. GEM’s research shows that this concern remains a significant barrier to entrepreneurship in many Asian economies.

Among the Asian countries in the figures provided, China has the highest percentage, at 64.5%. This means that nearly two-thirds of people who see good business opportunities would be deterred from starting a business because of the possibility of failure.

India follows closely, with 62.8%, while Saudi Arabia records 60.8%. These figures indicate that fear of failure is particularly strong in these three economies.

The percentage then falls to 48.0% in Thailand, followed closely by Japan at 47.9%. Although these figures are lower than those of China, India, and Saudi Arabia, they still represent almost half of the people who recognize potential business opportunities.

This suggests that the perceived risks associated with entrepreneurship can remain a substantial obstacle even in economies with established business environments.

In Qatar, 42.7% of potential entrepreneurs are deterred by fear of failure, while the figure for the United Arab Emirates (UAE) is 39.2%.

Interestingly, both countries have developed strong entrepreneurial ecosystems and continue to promote business creation. GEM’s research nevertheless shows that fear of failure can remain an issue even where entrepreneurial conditions are relatively supportive.

The percentage is lower in Indonesia, at 35.0%, followed by South Korea at 26.8% and Iran at 23.8%. South Korea’s relatively low figure is consistent with GEM commentary identifying Korea as one of the economies where fear of failure has a comparatively smaller effect on potential entrepreneurs.

Overall, these figures demonstrate that fear of failure varies considerably across Asia, ranging from 23.8% in Iran to 64.5% in China. The data highlights the importance of creating environments where aspiring entrepreneurs can manage risk through access to finance, education, mentoring, and supportive policies.

Reducing the consequences of failure may encourage more people to turn promising business opportunities into actual ventures, strengthening entrepreneurship and innovation across the region.