Myths about Entrepreneurship
How to Start and Operate a Business: Winning the Entrepreneurial Game, which I
published a number of years ago, author David Rye lists and debunks a number of
these myths.
Myth No. 1: Entrepreneurs Are High Risk Takers
Entrepreneurs, Rye states, are often thought of in terms of the risk they assume. Even
the dictionary describes an entrepreneur as one who assumes business risks. However,
like all prudent businesspeople, entrepreneurs know that taking high risks is a gamble.
Entrepreneurs are neither high nor low risk takers. They prefer situations in which they
can influence the outcome, and they like challenges if they believe the odds are in their
favor.
Entrepreneurs tend to carefully seek the best risk/reward action.
They seldom act until they have assessed all the risks associated with an endeavor,
and they have an innate ability to make sense out of complexity. These are traits that
carry them on to success where others fail.
I certainly agree with Rye. Entrepreneurs generally seek the best risk/reward situation.
Like most humans, they are often are a little hesitant to risk everything and take wild
chances.
One way entrepreneurs can limit the risk they are exposed to is by choosing one of
the best business ideas out there. Knowing which businesses to start and which to
avoid is the first step towards success.
Myth No. 2: Entrepreneurs Are Born
Many people, Rye says, believe that entrepreneurs possess innate, genetic talents.
However, experts generally agree that most entrepreneurs were not born; they learned
to become entrepreneurs. The recent proliferation of college and university courses on
the subject supports this point. Entrepreneurship is currently being successfully taught.
Again, I agree with Rye. I can’t overemphasize the fact that almost anyone can be a
successful entrepreneur. However, every aspiring entrepreneur should ask
themselves these questions before committing to a business. Starting your own
company is not an easy decision and you must understand that it will change your life in
many ways.
Myth No. 3: Entrepreneurs Are Mainly Motivated to Get Rich
Any successful entrepreneur, argues Rye, will tell you that starting a business is not a
get-rich-quick alternative. New businesses usually take from one to three years to turn a
profit. In the meantime, you’re considered to be doing well if you break even. During the
, business start-up stage, entrepreneurs do not buy anything they do not need, such as
fancy cars. Most drive junk cars and use their surplus money to pay off debt or reinvest
it in the business. Their focus is on creating a company with a strong financial base for
future expansion.
Becoming an entrepreneur is not a get-rich-quick alternative.
I largely agree with Rye. For entrepreneurs, money isn’t everything. But there’s nothing
embarrassing about being partially motivated by money, as are most entrepreneurs. If
entrepreneurs didn’t have the ability to get rich and get financially rewarded for their
work, the United States could be almost as poor as Cuba. It is OK to make money, build
a business, and help build your local economy in the process.
Knowing what motivates you to start a business is just the beginning. Pay attention to
these 5 crucial steps to start your own business.
Myth No. 4: Entrepreneurs Give Little Attention to Their Personal Life
All successful entrepreneurs, Rye says, work long hours, which cuts into their personal
life. However, long working hours are not unique to entrepreneurs. Many corporate
managers and executives work well beyond the average 40-hour workweek. The
primary difference between the entrepreneur and his or her corporate counterpart is
schedule control.
In the corporate world, you may not have control over your schedule. If some higher-
level manager calls a Saturday meeting, you’ve got no choice but to be there.
Entrepreneurs don’t mind working 60- to 70-hour weeks, but they will do everything they
can to preserve their private time. They schedule important meetings during the week
so that they can have weekends off for their personal life, which is very important to
them.
Entrepreneurs are not afraid to work long hours, but they will do everything to preserve
their private time and schedule control.
I find what Rye says is true, that most entrepreneurs do not give a lot of attention to
their personal lives. I have, at times, been an outlier and had almost no personal time,
such as when I was a full-time student at Harvard Business School and running four
start-up businesses at the same time, or was a full-time college student and starting an
independent newspaper business. Sometimes, as an entrepreneur with an especially
fast-growing business, you are going to have to sacrifice personal time.
Even if you are likely to sacrifice some of your personal time to get your business off the
ground, starting it isn’t the most time-consuming part of the process. It doesn’t take
How to Start and Operate a Business: Winning the Entrepreneurial Game, which I
published a number of years ago, author David Rye lists and debunks a number of
these myths.
Myth No. 1: Entrepreneurs Are High Risk Takers
Entrepreneurs, Rye states, are often thought of in terms of the risk they assume. Even
the dictionary describes an entrepreneur as one who assumes business risks. However,
like all prudent businesspeople, entrepreneurs know that taking high risks is a gamble.
Entrepreneurs are neither high nor low risk takers. They prefer situations in which they
can influence the outcome, and they like challenges if they believe the odds are in their
favor.
Entrepreneurs tend to carefully seek the best risk/reward action.
They seldom act until they have assessed all the risks associated with an endeavor,
and they have an innate ability to make sense out of complexity. These are traits that
carry them on to success where others fail.
I certainly agree with Rye. Entrepreneurs generally seek the best risk/reward situation.
Like most humans, they are often are a little hesitant to risk everything and take wild
chances.
One way entrepreneurs can limit the risk they are exposed to is by choosing one of
the best business ideas out there. Knowing which businesses to start and which to
avoid is the first step towards success.
Myth No. 2: Entrepreneurs Are Born
Many people, Rye says, believe that entrepreneurs possess innate, genetic talents.
However, experts generally agree that most entrepreneurs were not born; they learned
to become entrepreneurs. The recent proliferation of college and university courses on
the subject supports this point. Entrepreneurship is currently being successfully taught.
Again, I agree with Rye. I can’t overemphasize the fact that almost anyone can be a
successful entrepreneur. However, every aspiring entrepreneur should ask
themselves these questions before committing to a business. Starting your own
company is not an easy decision and you must understand that it will change your life in
many ways.
Myth No. 3: Entrepreneurs Are Mainly Motivated to Get Rich
Any successful entrepreneur, argues Rye, will tell you that starting a business is not a
get-rich-quick alternative. New businesses usually take from one to three years to turn a
profit. In the meantime, you’re considered to be doing well if you break even. During the
, business start-up stage, entrepreneurs do not buy anything they do not need, such as
fancy cars. Most drive junk cars and use their surplus money to pay off debt or reinvest
it in the business. Their focus is on creating a company with a strong financial base for
future expansion.
Becoming an entrepreneur is not a get-rich-quick alternative.
I largely agree with Rye. For entrepreneurs, money isn’t everything. But there’s nothing
embarrassing about being partially motivated by money, as are most entrepreneurs. If
entrepreneurs didn’t have the ability to get rich and get financially rewarded for their
work, the United States could be almost as poor as Cuba. It is OK to make money, build
a business, and help build your local economy in the process.
Knowing what motivates you to start a business is just the beginning. Pay attention to
these 5 crucial steps to start your own business.
Myth No. 4: Entrepreneurs Give Little Attention to Their Personal Life
All successful entrepreneurs, Rye says, work long hours, which cuts into their personal
life. However, long working hours are not unique to entrepreneurs. Many corporate
managers and executives work well beyond the average 40-hour workweek. The
primary difference between the entrepreneur and his or her corporate counterpart is
schedule control.
In the corporate world, you may not have control over your schedule. If some higher-
level manager calls a Saturday meeting, you’ve got no choice but to be there.
Entrepreneurs don’t mind working 60- to 70-hour weeks, but they will do everything they
can to preserve their private time. They schedule important meetings during the week
so that they can have weekends off for their personal life, which is very important to
them.
Entrepreneurs are not afraid to work long hours, but they will do everything to preserve
their private time and schedule control.
I find what Rye says is true, that most entrepreneurs do not give a lot of attention to
their personal lives. I have, at times, been an outlier and had almost no personal time,
such as when I was a full-time student at Harvard Business School and running four
start-up businesses at the same time, or was a full-time college student and starting an
independent newspaper business. Sometimes, as an entrepreneur with an especially
fast-growing business, you are going to have to sacrifice personal time.
Even if you are likely to sacrifice some of your personal time to get your business off the
ground, starting it isn’t the most time-consuming part of the process. It doesn’t take
