Why Psychological Courage Is the Secret Ingredient for Startup Success

In every major religious and spiritual tradition, courage is one of the most esteemed virtues. You would be hard-pressed to find someone who does not want to see themselves as a courageous person. However, when we think of courageous acts, our minds often gravitate toward what social scientists call monumental courage. Monumental courage refers to an extraordinary level of bravery in the face of significant fear, adversity or uncertainty.

Examples include firefighters running into the burning Twin Towers or Rosa Parks refusing to give up her seat on a segregated bus. When we reflect on these monumental acts, the distance between us and such figures feels vast, making our own courage seem insignificant. We may think to ourselves, “I could never be Rosa Parks. I could never jump into a burning building.” This mindset leads to the internalized belief that courage is reserved for a select few — not for us. When we idolize monumental courage as the only form of bravery to be admired, we overlook the courage we exhibit in our own lives. Courage is not a fixed personality trait; rather, it is a series of actions that compound over time. No one is inherently born courageous.

A type of courage that is rarely discussed but is just as vital is psychological courage. Psychological courage refers to the inner strength required to face deep-seated fears, emotional pain, uncertainty or self-doubt in pursuit of growth, authenticity or well-being. It involves confronting uncomfortable truths, navigating internal conflicts and pushing through psychological barriers such as fear of failure, imposter syndrome or vulnerability. For many of us, psychological courage is critical in gaining control over our lives. However, where do we learn to practice this type of courage? Where do we build these skills?

There are many environments in which one can cultivate psychological courage, but one is the startup community. In a world where 90% of startups fail and the odds are stacked against success, courageous actions are critical. This courage extends beyond the founder and founding team — it is embedded in the everyday decisions and actions of all employees. While not every startup embodies courage, the environment itself presents countless opportunities for every individual to choose courage or complacency.

Related: The Importance of Having Courage

Lessons from psychological courage in startups

Lesson 1: Full acceptance of reality

A key tenet of psychological courage is honesty with oneself. According to social scientist Daniel Putnam, self-deception can take several forms:

• Willful ignorance: Avoiding information we need to know.

• Systematic ignoring: Consciously keeping troubling information out of our minds.

• Distraction: Staying busy to avoid facing reality.

• Self-pretense: Intellectually acknowledging the truth but covering it up.

Startups force individuals to face reality quickly. Whether it’s accepting the truth about product-market fit, addressing the impact of a toxic but brilliant team member or responding to a data breach, delaying reality can have serious consequences. Money and time run out fast when problems are ignored. Courageous teams make a real effort to gather accurate information, ask difficult questions and address challenges head-on. By fully accepting reality, we gain control and move forward despite fear.

Lesson 2: Problem-solving

Once reality is accepted, space opens for effective problem-solving. Psychological courage allows individuals to transform threats and struggles into challenges that can be tackled with clarity and creativity. Startups provide a constant stream of problems to solve, creating opportunities to develop resilience and innovative thinking.

A crucial aspect of problem-solving is measured decision-making, avoiding impulsivity and fostering collaborative solutions. Teams that embrace psychological courage thrive by balancing urgency with strategic thinking. It also involves the willingness to experiment with new ideas, take calculated risks and adapt quickly when things don’t go as planned. Those who practice psychological courage in problem-solving don’t just react — they proactively seek solutions.

Related: If You Focus on Problems, You’ll Only Find More Problems. Here’s How to Focus on Solutions.

Lesson 3: Pushing beyond the struggle

Psychological courage requires a commitment to perseverance. The startup journey is often characterized by periods of low morale, burnout, disappointment and frustration. Over time, a sense of “toughness” develops, helping individuals see themselves as resilient. This resilience enables better management of fear and anxiety, reinforcing a belief in one’s ability to navigate challenges.

Startups are also unique in their sense of affiliation; people often form close bonds with their colleagues. This camaraderie fosters a supportive environment where individuals uplift each other and help manage stress during tough times.

Psychological courage helps individuals stay committed even when success is uncertain, maintaining focus on long-term goals rather than short-term difficulties. It encourages a mindset of continuous improvement and the understanding that setbacks are an inevitable part of growth.

Lesson 4: Thriving beyond survival

An important outcome of psychological courage is the realization that one can thrive, not just survive, within extraordinary challenges. While many startups may not achieve a major monetary exit, personal growth and a deeper understanding of oneself through the journey are invaluable achievements. Courageous individuals reflect on their experiences with a sense of fulfillment, knowing they have grown through adversity.

Psychological courage is the unsung hero behind successful startups. It enables individuals to confront reality, solve complex problems, push through struggles and ultimately thrive in an unpredictable environment. By recognizing and cultivating psychological courage, both founders and employees can build stronger, more resilient organizations and individuals.

Related: 4 Ways to Exercise Your Courage Muscle