The Fear of Failure: Stigma and Entrepreneurship in Finland

Imagine you’ve experienced something devastating, a kind of event that rocks your world and shatters your sense of self. Then in the middle of it all you get this AHA moment.

Maybe all your pain can be transformed into something meaningful that can help thousands of others.

But then you find yourself stuck, unable to move, unable to act. That was me in 2021-2022. I can’t recall exactly when, since I was on full fight or flight mode, trapped in chronic stress.

Now, years later, I am finally ready to bring her to life.

At the time I was living in a world of stress, having had my company go bankrupt and living in debt adjustment.

It would be interesting to examine the statistics of entrepreneurs who went bankrupt and subsequently started a new venture within a year or two.

I hypothesize that the number is much lower in Finland compared to countries where fear of failure is less of a barrier. In Finland, women have consistently reported higher levels of fear of failure than men, between 37–57% of women compared to 24–38% of men in recent years. In 2021, the gap peaked, with 57% of women and 38% of men saying fear of failure would prevent them from starting a business.

By contrast, in Argentina, fewer than one in five of those who see good business opportunities say fear of failure would stop them, and in the Republic of Korea it’s about one in four (GEM Global Report 2023/24).

This fear does two things: it makes aspiring entrepreneurs hesitant to try, and it makes those around them discourage them instead of offering support.

To understand this, we must dig deep into the historical and cultural roots and social stigma. By understanding these variables, we can begin to pave a path forward for change—something Finland desperately needs. At this rate, it won’t take long for Finland’s economy to hit rock bottom.

HISTORICAL & CULTURAL ROOTS OF FEAR OF FAILURE

Many times, when we examine something flawed, the answer lies in the past.

When my mother was born in the 1940s, Finland was still very much a Lutheran society. Nearly everyone belonged to the church, and Lutheran values of conformity and humility ran deep. Wanting to stand up for your feelings, or challenge authority, could easily be seen as disruptive — even selfish. I could feel her disapproval,

THE PERSONAL TOLL OF STIGMA AFTER BANKRUPTCY

“Why can’t you just let it be,”

or something along those lines. That wasn’t just parental advice; it reflected the cultural script she had inherited.

This is a perfect example of Lutheranism in action. Finland’s Lutheran roots didn’t just shape religion, but everyday behaviour. Hard work and equality were the norm.

At the same time, so was the expectation of not standing out or showing off; humility was key.

As historian Pirjo Markkola and social policy scholar Ingela Naumann note in their 2014 study, centuries of Lutheran dominance created “an atmosphere of conformity in Nordic societies.”

In a more collectivist culture like ours, this meant failure wasn’t only personal — it cast a shadow on your whole community. You were expected to contribute positively, and anything that might jeopardize the group was avoided.

Public failure, then, wasn’t just letting yourself down. It risked shaming your family, your neighbors, your community — which is why stigma still clings so tightly to it today.

This is the environment that must be changed; what may have been the norm for much of the 20th century will not help Finland thrive in the 21st. At a time when our economy depends on innovation and entrepreneurship, clinging to conformity and fear of failure is a recipe for stagnation that we cannot afford.

Fear of failure is not just an inner battle; it becomes stigma, reinforced by society. I experienced this firsthand. On LinkedIn in 2018, my posts received likes and comments. Then, fast-forward to 2020-2021—nothing. Could it be that I was persona non grata, a failure, a nobody since I declared bankruptcy? It surely felt like I was.

Anna Jenkins, Karin Hellerstedt, Erik Hunter, and Per Davidsson (2014) found that while public attitudes towards bankruptcy have lightened, there is still a substantial amount of stigma associated with it. The shame I felt was very real. Take Sweden, where bankruptcy is associated with shame and mistrust, it is only 4% of bankruptcies that are associated with improper conduct.

This feeling of being banished from society, even on social media, made me question myself and feel like a failure. I carried this feeling of deep guilt and worthlessness for years. The feelings I had relate to a person’s sense of self. Some bounce back quicker from bankruptcy than others, and this has to do with a person’s self-esteem. As I write, I think back to my days when my business was afloat. I did not have any issues with self-esteem; if I did, I am sure I would not have been able to conjure a founder, secure a government-backed bank loan.

Fast forward a couple of years and my sense of self was destroyed. I had put my all into my company; it was my baby. Till the very end, I fought. The failure was so personal as it was my failure. There was no one else to blame. And maybe that’s why the stigma stung so deeply, and for so long. It wasn’t a quick bounce-back; it took me years. Honestly, it’s only now, September 2025, that my debt adjustment program is over and I can finally see it differently. What changed wasn’t the past, but my perspective. I began to see the flaws in the system, not just in myself.

That’s the paradox researchers talk about: those who face their failure head-on often feel the stigma most intensely at first. I lived that truth—the weight of stigma nearly broke me. But in finally facing it, I’ve begun to learn, adapt, and move forward, stronger than before. In comparison, entrepreneurs who can’t face bad outcomes such as bankruptcy will go on not to learn from their mistakes and probably repeat the same mistakes.

SOCIAL & STRUCTURAL STIGMA IN FINNISH ENTREPRENEURSHIP

The prejudice I felt spoke volumes about how deeply ingrained the stigma of failure is in our society. While it's one thing to feel this from strangers or institutions, it hit even harder when it came from someone I knew. Imagine I had someone in my child’s class at school who put their flat to rent and would not rent to me. The simple act of not renting to me, because of the stigma attached to my bankruptcy, is a powerful example of what is called courtesy stigma—the prejudice we feel by association. This experience was deeply gutting.

This is a powerful demonstration of the difference between social and structural stigma. Social stigma is the prejudice and discrimination from individuals in society, like the school parent.

Structural stigma is how these prejudices are encoded into the system, making it incredibly difficult to recover. A key example is how tough it is to rent or buy a home in Finland after a bankruptcy. While you might be able to find a landlord who doesn't care about your past, the system as a whole is stacked against you, making it an uphill battle.

Even the European Union sees flaws in the laws countries have implemented,

“Research shows that businesses set up by re-starters grow faster than businesses set up by first timers in terms of turnover and jobs created. But acting on second chance would bring an even larger impact on entrepreneurship: many would-be entrepreneurs do not start a company because of their fear of the consequences of business failure and thousands of companies are not created and tens of thousands of jobs are not created every year in Europe. Fear of bankruptcy and its consequences acts as an effective deterrent to entrepreneurship. An effective second chance policy is fundamental to send a message that entrepreneurship may not end up as a "life sentence" in case things go wrong.”

STIGMA FUELS FEAR OF FAILURE

Why does this matter? Because stigma doesn’t just punish those who have failed — it creates fear in those who are thinking about starting. When entrepreneurs see how society treats failure, they hesitate before trying. This is the cycle Finland is stuck in: stigma reinforces fear of failure, and fear of failure stifles innovation. Until we break this cycle, our economy will remain risk-averse and stagnant.

This is in essence WHY I created Beyond Bankruptcy. These are not things to be ashamed of and remain unspoken about.

Fear of failure is not a personal flaw — it’s a reflection of cultural, social, and structural forces that weigh down every would-be entrepreneur. By confronting stigma, we don’t just help those who have fallen; we also free the next generation to try, to innovate, and to build.

Breaking the cycle of stigma and fear of failure isn’t just about helping entrepreneurs like me — it’s about securing Finland’s future. In my next post, I’ll look at how these prejudices are legally and economically encoded— and how reform could finally give Finnish entrepreneurs the second chance they deserve.

The weight of the stigma I carried was a long road. But finally, I'm on the other side—a path to freedom and a new beginning.