| Myth |
ENTREPRENEURS ARE BORN, NOT MADE |
| Reality |
While entrepreneurs are born with certain native intelligence,
a flair for creating, and energy, these talents by themselves are like unmolded clay or an unpainted
canvas. The making of an entrepreneur occurs by accumulation the relevant skills, know-how experiences,
and contacts over a period of years and includes large doses of self-development. The creative capacity
to envision and then pursue an opportunity is a direct descendent of at least 10 or more years of
experience that lead to pattern recognition.
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| Myth |
ANYONE CAN START A BUSINESS |
| Reality |
Entrepreneurs who recognize the difference between an idea and an
opportunity, and who think big enough, start businesses that have a better chance of succeeding. Luck, to
the extent it is involved, requires good preparation. And the easiest part is starting up. What is
hardest is surviving, sustaining, and building a venture so its founders can realize a harvest. Perhaps
only one in 10 to 20 new businesses that survive five years or more result in a capital gain for the
founders.
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| Myth |
ENTREPRENEURS ARE GAMBLERS |
| Reality |
Successful entrepreneurs take very careful, calculated risks.
They try to influence the odds, often by getting others to share risk with them and by avoiding or
minimizing risks if they have the choice. Often they slice up the risk into smaller, quite digestible
pieces; only then do they commit the time or resources to determine if that piece will work. They do
not deliberately seek to take more risk or to take an unnecessary risk, nor do they shy away from
unavoidable risk.
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| Myth |
ENTREPRENEURS WANT THE WHOLE SHOW TO THEMSELVES |
| Reality |
Owning and running the whole show effectively puts a ceiling on growth.
Solo entrepreneurs usually make a living. It is extremely difficult to grow a higher potential venture
by working single-handedly. Higher potential entrepreneurs build a team, an organization, a company.
Besides, 100 percent of nothing is nothing, so rather than taking a larger piece of the pie, they
work to make the pie bigger.
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| Myth |
ENTREPRENEURS ARE THEIR OWN BOSSES AND COMPLETELY
INDEPENDENT |
| Reality |
Entrepreneurs are far from independent and have to serve many masters
and constituencies, including partners, investors, customers, suppliers, creditors, employees, families,
and those involved in social and community obligations. Entrepreneurs, however, can make free choices
of whether, when, and what they care to respond to. Moreover, it is extremely difficult, and rare, to
build a business beyond $1 million to $2 million in sales single-handedly.
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| Myth |
ENTREPRENEURS WORK LONGER AND HARDER THAN MANAGERS
IN BIG COMPANIES |
| Reality |
There is no evidence that all entrepreneurs work more than their corporate
counterparts. Some do, some do not. Some actually report they work less.
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| Myth |
ENTREPRENEURS EXPERIENCE A GREAT DEAL OF STRESS AND
PAY A HIGH PRICE |
| Reality |
No doubt about it: Being an entrepreneur is stressful and demanding. But
there is no evidence that it is any more stressful than numerous other highly demanding professional
roles, and entrepreneurs find their jobs very satisfying. They have a high sense of accomplishment, are
healthier, and are much less likely to retire than those who work for others. Three times as many
entrepreneurs as corporate managers say they plan never to retire.
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| Myth |
STARTING A BUSINESS IS RISKY AND OFTEN ENDS IN FAILURE |
| Reality |
Talented and experienced entrepreneurs—because they pursue attractive
opportunities and are able to attract the right people and necessary financial and other resources to make
the venture work—often head successful ventures. Further, businesses fail, but entrepreneurs do not.
Failure is often the fire that tempers the steel of an entrepreneur's learning experience and street savvy.
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| Myth |
MONEY IS THE MOST IMPORTANT START-UP INGREDIENT |
| Reality |
If the other pieces and talents are there, the money will follow, but it
doesn't follow that an entrepreneur will succeed if he or she has enough money. Money is one of the least
important ingredients in new venture success. Money is to the entrepreneur what the paint and brush are
to the artist—an inert tool which, in the right hands, can create marvels. Money is also a way of keeping
score, rather than just an end in itself. Entrepreneurs thrive on the thrill of the chase; and, time and
again, even after an entrepreneur has made a few million dollars or more, he or she will work incessantly
on a new vision to build another company.
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| Myth |
ENTREPRENEURS SHOULD BE YOUNG AND ENERGETIC |
| Reality |
While these qualities may help, age is no barrier. The average age of entrepreneurs
starting high potential businesses is in the mid-30s, and there are numerous examples of entrepreneurs starting
businesses in their 60s. What is critical is possessing the relevant know-how, experience, and contacts that
greatly facilitate recognizing and pursuing an opportunity.
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| Myth |
ENTREPRENEURS ARE MOTIVATED SOLELY BY THE QUEST FOR THE ALMIGHTY
DOLLAR |
| Reality |
Entrepreneurs seeking high potential ventures are more driven by building
enterprises and realizing long-term capital gains than by instant gratification through high salaries and
perks. A sense of personal achievement and accomplishment, feeling in control of their own destinies, and
realizing their vision and dreams are also powerful motivators. Money is viewed as a tool and way of keeping
score. |
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| Myth |
ENTREPRENEURS SEEK POWER AND CONTROL OVER OTHERS |
| Reality |
Successful entrepreneurs are driven by the quest for responsibility,
achievement, and results, rather than for power for its own sake. They thrive on a sense of accomplishment
and of outperforming the competition, rather than a personal need for power expressed by dominating and
controlling others. By virtue of their accomplishments, they may be powerful and influential, but these are
more the by-products of the entrepreneurial process than a driving force behind it.
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| Myth |
IF AN ENTREPRENEUR IS TALENTED, SUCCESS WILL HAPPEN IN
A YEAR OR TWO |
| Reality |
An old maxim among venture capitalists says it all: The lemon ripens
in two and a half years, but the pearl takes seven or eight. Rarely is a new business established
solidly in less than three or four years.
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| Myth |
ANY ENTREPRENEUR WITH A GOOD IDEA CAN RAISE VENTURE CAPITAL |
| Reality |
Of the ventures of entrepreneurs with good ideas who seek out venture capital,
only 1 to 3 out of 100 are funded.
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| Myth |
IF AN ENTREPRENEUR HAS ENOUGH START-UP CAPITAL, HE/SHE
CAN'T MISS |
| Reality |
The opposite is often true; that is, too much money at the outset often
creates euphoria and spoiled-child syndrome. The accompanying lack of discipline and impulsive spending
usually lead to serious problems and failures.
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