There are a number of misconceptions when it comes to who entrepreneurs are and what is a motivating factor for their unbridled ambition. A lot of the misunderstanding might come from the media’s coverage of the unicorn companies like Facebook, Spotify, and newly IPO’d Airbnb. The hype and buzz surrounding such companies leads people to believe that these startups are the rule instead of the exception. Many businesses would love to have the level of mythical commercial success as these billion dollar behemoths, but the reality is much different than what’s apparent. We’ll dive into the common myths and misconceptions of entrepreneurship.
1. Entrepreneurs are Born That Way
Some people believe that successful entrepreneurs have a predisposition to the field. In this, they discount the idea that their environment and upbringing play an enormous role in whether they will take the path of launching a new venture. Life experiences, personal choices, and availability all work as a function in determining a persons propensity for starting a business. However, there are certain characteristics and personality traits that are common to entrepreneurs. Children of parents that were self employed tend to become entrepreneurs later in life. After years of exposure to the independence of the workplace, a child will usually find this route to be more appealing. Similarly, those who know entrepreneurs that are successful, they will be more likely to start a business of their own. Those positive connections, associations, and observances, remove the layer of ambiguity and uncertainty. So, this isn’t to say that all entrepreneurs are naturally born proprietors, nor is this saying that all are forged in through their life journey, it’s to say that there is a balance between the two.
2. Entrepreneurs are Financially Unstable Gamblers
This is what you might hear every once in a while, “Entrepreneurs are just gamblers, it’s a matter of luck.” Entrepreneurs will take risks, that’s true. At times they will take great risks to see their dreams become a reality. However, much of the risks that entrepreneurs take are usually calculated. From 2011, some of our associates mentioned that having multiple streams of income is a far greater practice of stability than having one traditional stream from a traditional job. Why? Because, at any point, an employee can be terminated or laid-off whereas in a business that you own, only you can close the business or your clients can fire you. That’s it.
3. Entrepreneurs are Money Hungry
Yes, entrepreneurs are seeking to gain financially, but that isn’t the only reason why entrepreneurs launch new ventures. To only be in pursuit of money would lead entrepreneurs to become distracted by shiny object syndrome; wherever the money is they will follow. Which, in turns would lead an entrepreneur away from seeing any idea to its fullest. Additionally, if money is the end all be all, you’ll be afraid to invest it back into the business out of fear of losing it.
4. Entrepreneurship is a Young Person’s Game
Entrepreneurs have to wear multiple hats to manage many moving parts of the business. Activity is spread out across business operations. Now, assumption might have it that older demographics would be unable to keep up with the demands of entrepreneurship, especially when factoring in life events such as marriage, children, mortgages, increasing insurance premiums, etc. It’s important to be energetic, but what a mature entrepreneur loses in vigor they gain in experience, skills, connections, and a track record of success.
5. Entrepreneurs are Flashy Radical
Sure, some entrepreneurs are flashy and enjoy an extravagant lifestyle; although a majority of entrepreneurs don’t seek out public attention. Actually, since most entrepreneurs have their head down as they focus on developing their business, there isn’t much time to live lavishly. Here is something to note, part of business is gaining attention and interest of your consumers. Public relations and media placement lands the founders in the forefront of those publications as they are the leaders of the company. Naturally, founders might want to keep a lower profile, but they will have updates that need to be disseminated to the public when they are first starting, adding new product offerings, or are expanding operations. This will thrust the entrepreneur into the spotlight- this attention could be unwanted.
In Closing
Those are the five most common myths about entrepreneurship. When you hear these, don’t allow them to deter you from setting out to start your own business. Even if you think these yourself, think critically and ask entrepreneurs in your network if these myths are true. You’ll find that they are not common with most individuals that start businesses, but there are subsets of traits within any field.