Examining incubated and nonincubated startups from fear of failure and entrepreneurial well-being during crises

Abstract

Purpose: This research aimed to examine entrepreneurial fear of failure and entrepreneurial well-being from the perspectives of incubated and nonincubated startups during crises. Design/methodology/approach: Data were collected by distributing online questionnaires to 152 respondents comprising 43 incubated and 109 nonincubated startups in Indonesia. A multivariate discriminant analysis procedure was used to examine the interrelationships between both groups at the discovery, validation, customer creation and construction stages. Findings: The result showed a significant difference between these startups at various stages, which was analyzed to provide insights into the relevant dimensions of fear of failure for startups. The essence of entrepreneurial well-being during crises is in accordance with the role of business incubators in an emerging market economy. Practical implications: Startups need to innovate in order to grow while considering other factors such as work-life balance and financial resource availability. This is important to ensure they have sufficient motivating dosage of fear of failure. Originality/value: The present study evaluates incubated and nonincubated startups in an emerging market economy by using both the entrepreneurial fear of failure and well-being to capture possible differences between groups. The context of pandemic crises helps us formulate appropriate approaches taken by incubators and startups in the future crises.