The Top Myths About Entrepreneurs
1. It is believed that out of 10 businesses, 9 fail.
This is false. The rate at which businesses fail is not this high. From the findings of the Small Business Administration, about two thirds of new businesses make it for 2 years and approximately 44% make it for the next five years.
2. It is believed that entrepreneurs are all young.
This is false. As statistics have revealed, the average entrepreneur starts a businesses when they are 39 years of age.
3. Entrepreneurs are well educated.
This is a fact as a survey performed by the Kauffman Foundation reveals that about 95% of entrepreneurs have earned Bachelors Degree while other 45% had post graduate degrees.
4. It takes money to make money.
This is a common belief but it can not be substantiated as surveys have revealed that most business start ups get investments from friends and families and the average amount required is a range of $15,000 to $20,000.
5. You need a great idea to become an entrepreneur.
This is false because being a successful entrepreneur is a product of innovation with respect to existing concepts.
6. Entrepreneurs are born with it.
This is considered to be true as about 61% of entrepreneurs sited their inner drive as a motivation towards starting up the business, while only about 1% attributed to a higher education.
7. Entrepreneurs come from money.
This is false because only about 6% of entrepreneurs come from the elite class. About 70% are from the middle class, while 22.5% can be referred to as working class.
8. If I am smart, I should be profitable after six months.
This is false. If an entrepreneurs is so smart in what he does, it requires some measure of patience to reap the rewards.
9. Banks do not lend money to start-ups.
This is true. The Federal Reserve conducted a survey and it was discovered that financing of about 16% of start ups come from the banks.
10. Entrepreneurs are experts in their industries.
From statistics, it was observed that of about 500 incorporation’s, approximately 40% of the owners had no prior experience when they began. Overtime they grew and became experts in their industries.