Which one is better and why?
Failure makes people not want to work hard.
Failure makes people do not want to work hard.
I wish I had better English, but I work hard to improve it. I'm studying for IGCSE, so I'm only interested in BrE.
The second one is not grammatical.
I'm not a teacher, but I write for a living. Please don't ask me about 2nd conditionals, but I'm a safe bet for what reads well in (American) English.