THE MYTHS OF

NTREPRENEURSHIP

MYTH #1

Get Rich Quick!

Truth is
Life as an entrepreneur is not about money.
Success rarely happens overnight.
It's about what you want to do with your life.

MYTH # 2

You must be born an

entrepreneur
(trait theory)
Truth is:
some of the most successful entrepreneurs are
the most unlikely.
It is a lifestyle choice, not an accident.

MYTH # 3
You must be at the right place at the
right time
(environment theory)
Truth is:
successful entrepreneurs operate whatever the
macroeconomic and structural factors are

MYTH # 4

"I'll have all this free time"

Truth is entrepreneurs work many
hours
advantages are:
control of time
variety of tasks

MYTH # 5

It gets easier.
Truth is it gets more challenging
must work faster, smarter & longer
must enjoy the battle

MYTH # 6

If you build it, they will come.

Truth is building your business is just the
start.
Next is the real work:
planning
timing
strategizing and more.

MYTH # 7

It's all about the bottom line.

Truth is that the bottom line is necessary
but not sufficient
purpose and meaning to the business
inspire customers and employees
Wall Mart concept of Customer Service

MYTH # 8

Entrepreneurs are risk takers

Truth Entrepreneurs are calculators
Studies show entrepreneurs are only
moderate risk takers

MYTH # 9

You have to have a great idea

Truth
Your
Your
Your
Your

idea
idea
idea
idea

must
must
must
must

be
be
be
be

good
doable
wanted or needed
priced right

MYTH # 10

It takes a lot of money

Truth Over 50% start for under $10,000
Also look for
Certain business types
Turn-around situations
Possibility of using other peoples money
Market Niche

ST
YL
E
LI
FE

Tim
eW
Fam ith
ily

One Last Myth

The key to success is a great idea

The keys are:

Good idea

Great plan

KSA

The Entrepreneurial Mindset

Entrepreneur Background & Characteristics

1.

Education
- Formal education is not necessary for starting a new business.
- Research shows education provides a good background,
although majority of successful venture owners like Henry
Ford, Bill Gates were college dropouts.
- Only a few have relevant degrees in engineering, science or
math.

2. Personal Values
- Research shows that entrepreneurs have different set of
attitudes in the field of management process.
- Five core characteristics are superior product quality, quality
service to customers, flexibility & ability to adapt to changes in
the market, high caliber management, honest & ethics in
business.

Entrepreneur Background & Characteristics

3. Age
- Most entrepreneurs initiate their entrepreneurial careers
between the chronological ages of 25 and 45.
- Generally, Male entrepreneurs start their first venture in their
early 30s whereas women do so in their middle 30s.

4. Work History
- Dissatisfaction with various aspects of ones job such as lack of
challenge, or promotional opportunities, frustration, boredom
etc motivates the launching of new venture.

Role Models & Support Systems

Moral Support Network: Individuals who give psychological

support, advice to the entrepreneur like friends, relatives

etc.
Professional Support Network: includes mentor, business

associates, suppliers, trade associations, or personal

affiliations who give advice and counseling to the
entrepreneur.

Comparison of Male & Female Entrepreneurs

Characteristic

Male Entrepreneurs

Female Entrepreneurs

Motivation

Achievement-strive to make
things happen, Personal
independence, Job satisfaction
arises from the desire to be in
control

Achievement- Accomplishment
of a goal, independence-to do it
alone

Departure point

Dissatisfaction with present job,

sideline in college, present job,
or outgrowth of present job,
discharge or layoff, opportunity
for acquisition

Job frustration, interest in and

recognition of opportunity in the
area, change in personal
circumstances, personal assets &
savings, personal loans

Sources of funds

Personal assets & savings, bank

financing, investors, loans from
friends and family

Personal assets & savings,

personal loans

Occupational
background

Experience in line of work,

Recognized specialist or
achiever, competent in variety of
business functions

Experience in area of business,

Middle management or
administrative level experience
in the field, service related
occupational background.

Comparison of Male & Female Entrepreneurs

Characteristic

Male Entrepreneurs

Female Entrepreneurs

Personality
characteristics

Opinionated & persuasive, Goal

oriented, innovative & idealistic,
High level of self confidence,
Enthusiastic & energetic, Must
be own boss

Flexible & tolerant, goal oriented,

Creative & realistic, medium level
of self confidence, enthusiastic &
energetic, ability to deal with the
social & economic environment.

Background

Age= 25-35, father was selfemployed, college educated

(degree in business or technical
area)

Age= 35-45, father was self

employed, college educated
(degree in liberal arts), firstborn
child

Support groups

Friends, professional
acquaintances(lawyers,
accountants), business
associates, spouse

Close friends, spouse, family,

womens professional groups,
trade associations

Type of
Manufacturing or construction
business started

Service related- educational

services, consulting or public
relations

Characteristics of an Entrepreneurial Environment

New ideas encouraged
Trial & error encouraged
Failures allowed
No opportunity parameters
Resources available & accessible
Multidiscipline teamwork approach
Long time horizon
Volunteer program
Appropriate reward system
Sponsors available
Support of top management

Wishful Thinking

Seta big dream and put your

time and thinking into
chasing it, your painful
memories will have no room
to bother you again.
(dont know who said it)