Entrepreneurship has definitely taken off over the last ten to fifteen years. Most of that has to do with the internet and technological advances that have made resources more readily available to us. However, there are a lot of misconceptions about what it takes to be an entrepreneur and how they come up with their ideas. Here, we are going to look at a couple of them:
1. Entrepreneurs are the smartest, most high-achieving people in the room.
This is a myth that is perpetuated by entrepreneurs themselves. Entrepreneurs are not looking to please other people; they are trying to figure out what they are really passionate about, and they kind of reject everything else. They are more likely to get a plus in one class but not the other, which is the reason why we see many entrepreneurs dropping out of school. If you are in school, this is not an encouragement for you to do so.
2. Entrepreneurs are individuals who make things happen by themselves.
Ed Roberts’ research shows that teams are much more likely to succeed than individuals. If you have two people on your team, you’re more likely to succeed than one person. Three are more likely to succeed than two, and four more than three. So it is not an individual sport. So, entrepreneurs as individuals is not true, for one needs to be looking to find people to join their team.
3. Entrepreneurs are born, not made.
Research has shown again and again that entrepreneurs really do not necessarily come from parents who were entrepreneurs, and that there’s no statistical correlation between them, nor is there a gene that makes you an entrepreneur. It’s basically a skill that can be acquired over time.
4. Entrepreneurs love risk.
I know you have heard all this time and time again. Research has shown that the typical entrepreneur is not any more risk-seeking than the typical manager. They can be described as clever risk managers. They seek to mitigate the risk of venture capitalists and investors before they invest. Other entrepreneurs manage a management team in charge of risk by hiring key employees or building potent advisory boards. So entrepreneurs don’t seek out risk. They don’t prefer it. They attempt to manage it through careful experimentation and resource leveraging.
5. Successful entrepreneurs are charismatic.
Entrepreneurship is about effecting change, and effecting change is about leadership. Research has actually shown that charisma is not correlated with success in changing the world, but it focuses on these things:
- Do you have a vision?
- Do you have the sense-making capability to understand what’s going on in the world?
- Do you have the ability to make sense of what’s going on in the world?
6. You have to be rich to be an entrepreneur or have a ton of money to get started.
Jeff Bezos started on a shoestring and funded Amazon with his parents’ guarantees, supplier loans, and overdrawn credit cards. In other words, with his available means. Instead of going on vacation, you can start a venture. In small, explorative steps, you employ the available means—your money, time, and other people’s trust.