THE MYTHS OF ENTREPRENEURSHIP

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 #1

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 # 2

You must be at the right place at the right time(environment theory)

Truth is:successful entrepreneurs operate whatever the macroeconomic and structural factors areMYTH # 3

"I'll have all this free time"

Truth is entrepreneurs work many hoursadvantages are:control of timevariety of tasksMYTH # 4

It gets easier.

Truth is it gets more challengingmust work faster, smarter & longermust enjoy the battleMYTH # 5

If you build it, they will come.

Truth is building your business is just the start.Next is the real work:planningtimingstrategizing and more.MYTH # 6

It's all about the bottom line.

Truth is that the bottom line is necessary but not sufficientpurpose and meaning to the businessinspire customers and employeesWall Mart concept of Customer Service MYTH # 7

Entrepreneurs are risk takers

Truth Entrepreneurs are calculatorsStudies show entrepreneurs are only moderate risk takersMYTH # 8

You have to have a great idea

Truth Your idea must be goodYour idea must be doableYour idea must be wanted or neededYour idea must be priced rightMYTH # 9

It takes a lot of money

Truth Over 50% start for under $10,000Also look forCertain business typesTurn-around situationsPossibility of using other peoples moneyMarket Niche MYTH # 10

LIFE STYLETime With Family

One Last MythThe key to success is a great ideaGood ideaGreat plan KSA .Passion!The keys are:

The Entrepreneurial Mindset

Entrepreneur Background & CharacteristicsEducation- 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.

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.

Entrepreneur Background & Characteristics

Role Models & Support SystemsMoral 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 EntrepreneursCharacteristicMale EntrepreneursFemale EntrepreneursMotivationAchievement-strive to make things happen, Personal independence, Job satisfaction arises from the desire to be in controlAchievement- Accomplishment of a goal, independence-to do it aloneDeparture pointDissatisfaction with present job, sideline in college, present job, or outgrowth of present job, discharge or layoff, opportunity for acquisitionJob frustration, interest in and recognition of opportunity in the area, change in personal circumstances, personal assets & savings, personal loansSources of fundsPersonal assets & savings, bank financing, investors, loans from friends and familyPersonal assets & savings, personal loansOccupational backgroundExperience in line of work, Recognized specialist or achiever, competent in variety of business functionsExperience in area of business, Middle management or administrative level experience in the field, service related occupational background.

Comparison of Male & Female EntrepreneursCharacteristicMale EntrepreneursFemale EntrepreneursPersonality characteristicsOpinionated & persuasive, Goal oriented, innovative & idealistic, High level of self confidence, Enthusiastic & energetic, Must be own bossFlexible & tolerant, goal oriented, Creative & realistic, medium level of self confidence, enthusiastic & energetic, ability to deal with the social & economic environment.BackgroundAge= 25-35, father was self-employed, college educated (degree in business or technical area)Age= 35-45, father was self employed, college educated (degree in liberal arts), firstborn childSupport groupsFriends, professional acquaintances(lawyers, accountants), business associates, spouseClose friends, spouse, family, womens professional groups, trade associationsType of business startedManufacturing or constructionService related- educational services, consulting or public relations

Characteristics of an Entrepreneurial EnvironmentNew ideas encouragedTrial & error encouragedFailures allowedNo opportunity parametersResources available & accessibleMultidiscipline teamwork approachLong time horizonVolunteer programAppropriate reward systemSponsors availableSupport 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)

*So how do you reach success? As mentioned in the myths, people will not typically beat a path to your door if you have the greatest idea. Your idea needs to be good in the sense it must meet peoples needs by offering them the benefits they want not the features but the benefits.

What is more important is that a great plan be built around the good idea. Parts of the plan include where and how to market the product or service, the right price, record keeping, locating other professionals to be part of your team, etc.

Finally the owner need commitment to continue on when nothing seems to be going right or sitting all day without one customer entering the door. *