Common Myths about Entrepreneurs

Myth 1: Entrepreneurs Are Born Not Made

This myth is based on the mistaken belief that some people are genetically predisposed to be entrepreneurs. The consensus of many studies is that no one is “born” to be an entrepreneur; everyone has the potential to become one. Whether someone does or doesn't become an entrepreneur, is a function of the environment, life experiences, and personal choices.

Although no one is “born” to be an entrepreneur, there are common traits and characteristics of successful entrepreneurs.

Myth 2: Entrepreneurs Are Gamblers

Most entrepreneurs are moderate risk takers.The idea that entrepreneurs are gamblers originates from two sources:

§  Entrepreneurs typically have jobs that are less structured, and so they face a more uncertain set of possibilities than people in traditional jobs.

§  Many entrepreneurs have a strong need to achieve and set challenging goals, a behavior that is often equated with risk taking.

Myth 3: Entrepreneurs Are Motivated Primarily by Money.

While it is naïve to think that entrepreneurs don’t seek financial rewards, money is rarely the reason entrepreneurs start new firms. In fact, some entrepreneurs warn that the pursuit of money can be distracting.

Myth 4: Entrepreneurs Should Be Young and Energetic.

The most active age for business ownership is 35 to 45 years old. While it is important to be energetic, investors often cite the strength of the entrepreneur as their most important criteria in making investment decisions.

§  What makes an entrepreneur “strong” in the eyes of an investor is experience, maturity, a solid reputation, and a track record of success.

These criteria favor older rather than younger entrepreneurs

Types of Start-Up Firms