MYTHS OF ENTREPRENEURSHIP

PRESENTED BY: ANEELA SALEEM ROZINA YOUNUS

Entrepreneurs Are Academic And Social Misfits Today The Entrepreneur Is Considered A Hero- Socially, Academically And Economically And Now Entrepreneurs Are No Longer A Misfit And Viewed As A Professional Role Model

Hassan Sheheryar Yasin

Entrepreneurs Are Always Inventors Ray Kroc Did Not Invent The Fast Food Franchise, But His Innovative Ideas Made McDonalds' The Largest Fast Food Enterprise In The World.

The Venture Capital Myth “Most Successful Entrepreneurs Start Their Companies With Millions In Venture Capital To Develop Their Idea, Buy Supplies, And Hire Employees.” In 1999, For Example, Fewer Than 4,000 Of The Roughly 700,000 New Businesses Created Were Venture Capital-funded.

The Venture Capital Myth Even Bill Gates And Paul Allen, Founders Of Microsoft, Failed To Secure Venture Capital When They Started Their Company In And Networking Giant Cisco Systems Was Initially Financed From The Personal Savings And Borrowings Of Its Two Founders.

The Expert Myth “Most Successful Entrepreneurs Have Strong Track Records And Years Of Experience In Their Industries” A Full 40 Percent Of Inc. 500 Founders Had No Prior Experience In The Industry They Were Entering, According To NCOE Research.

The Expert Myth Jann Wenner Started Rolling Stone Magazine When He Was Just 21 And Just Out Of College. Steve Wozniak, Who Helped Found Apple Computers, Was An "Undistinguished" Engineer At Hewlett-packard When He Built The First Apple Computer.

Entrepreneurs Are Born Not Made Environment has more to do with being an entrepreneur than genetics

Some Costly Myths That Entrepreneurs, Investors, and Policy Makers Live By

Banks Don’t Lend Money To Start-ups. Federal Reserve Data Shows That Banks Account For Sixteen Percent Of All The Financing Provided To Companies That Are Two Years Old Or Younger, It Is Three Percent Higher Than The Amount Of Money Provided By The Next Highest Source – Trade Creditors, And Is Higher Than A Bunch Of Other Sources That Everyone Talks About Going To….

Start-ups Can’t Be Financed With Debt. According To The Federal Reserve’s Survey Of Small Business Finances, Fifty-three Percent Of The Financing Of Companies That Are Two Years Old Or Younger Comes From Debt And Only Forty-seven Percent Comes From Equity. According To The Federal Reserve’s Survey Of Small Business Finances, Fifty-three Percent Of The Financing Of Companies That Are Two Years Old Or Younger Comes From Debt And Only Forty-seven Percent Comes From Equity.

Most Entrepreneurs Are Successful Financially. The Typical Profit Of An Owner-managed Business Is $39,000 Per Year. Only The Top Ten Percent Of Entrepreneurs Earn More Money Than Employees. And The Typical Entrepreneur Earns Less Money Than He Otherwise Would Have Earned Working For Someone Else.

Most Entrepreneurs Start Businesses In Attractive Industries. The Correlation Between The Number Of Entrepreneurs Starting Businesses In An Industry And The Number Of Companies Failing In The Industry Is That Means That Most Entrepreneurs Are Picking Industries In Which They Are Most Likely To Fail.

The Growth Of A Start-up Depends More On An Entrepreneur’s Talent Than On The Business He Chooses. Over The Past Twenty Years Or So, About 4.2 Percent Of All Start-ups In The Computer And Office Equipment Industry Made The Inc 500 List Of The Fastest Growing Private Companies In The U.S.

The Growth Of A Start-up Depends More On An Entrepreneur’s Talent Than On The Business He Chooses Percent Of Start-ups In The Hotel And Motel Industry And Percent Of Start-up Eating And Drinking Establishments Made The Inc That means the odds that you will make the Inc 500 are 840 times higher if you start a computer company than if you start a hotel or motel.

Quiz: Are You An Entrepreneurial Type?? 1. People who become entrepreneurs generally share similar psychological profiles such as being leaders, risk-takers, or adventurous.

Quiz: Are You An Entrepreneurial Type?? False: As a group, entrepreneurs show no consistent or characteristic psychological profiles. For every study concluding that entrepreneurs are adventurous risk-takers, another finds they are timid risk-avoiders. 2. Most entrepreneurs are under 40 years of age.

Are You An Entrepreneurial Type?? False: More than 60% of business owners and more than 54% of self-employed workers in the U.S. are 45 years old or older. 3. Among entrepreneurs, people with strong networking skills outnumber “lone wolfs”

Are You An Entrepreneurial Type?? False: Compared to salaried employees, entrepreneurs have fewer mentors and get less help from other people. 4. College-educated people are less likely to become entrepreneurs.

Are You An Entrepreneurial Type?? False: College education (though not necessarily graduation) is more common among entrepreneurs. False: College education (though not necessarily graduation) is more common among entrepreneurs. 5. The desire to make money is the most common reason why people become entrepreneurs.

Are You An Entrepreneurial Type?? False: The most common reason for becoming an entrepreneur is the wish to avoid working for others. In fact, most entrepreneurs earn less than they would in comparable salaried jobs. 6. Working for someone else decreases the chances that a person will become an entrepreneur

Are You An Entrepreneurial Type?? False: Experience as a salaried employee increases the probability that someone will become an entrepreneur. 7. Immigrants are more likely than non- immigrants to become entrepreneurs

Are You An Entrepreneurial Type?? False: Immigrants are no more likely than their non-immigrant compatriots to start their own businesses. False: Immigrants are no more likely than their non-immigrant compatriots to start their own businesses. 8. Most entrepreneurs work in technology, software, and other high growth sectors rather than in mature industries

Are You An Entrepreneurial Type?? False: Worldwide, the overwhelming majority of entrepreneurs work in mature, mundane industries such as food service and insurance. Relatively few entrepreneurs work in innovative or high-growth sectors. False: Worldwide, the overwhelming majority of entrepreneurs work in mature, mundane industries such as food service and insurance. Relatively few entrepreneurs work in innovative or high-growth sectors.