Entrepreneurs are born, not made!
Entrepreneurship is for tech geniuses.
You need a business degree to start a business.
Are you looking to start a business and have heard any of these before?
With the recent surge in entrepreneurship, there has been a rise in common misconceptions about being an entrepreneur. Even prior to the new interest that it has sparked, there were still commonly held beliefs about starting a business that held little truth to them. The media for one has played a massive role in that perception and social media has further created a thin line of what is true and what is not.
With that, we decided to explore five common myths about entrepreneurs and entrepreneurship and uncover their realities in the hopes that it will still encourage your pursuit.
1. Entrepreneurs are young
It’s widely believed that the most successful entrepreneurs are young. When we think of an entrepreneur, an image of a youthful man or woman in their 20’s or 30’s in professional wear sitting in front of a laptop or computer desk, normally comes to mind. If you also search for stock images, the results are of that same fresh faced youth bearing a smile similar to what you envisioned. Or maybe you think of a college dropout who is a tech geek and builds a platform in his dorm room that becomes a hit. Sounds familiar?
But why might this be?
Well, we mentioned it earlier. The media has helped to shape our perception of what is. What we should look like, where we need to be at a certain age in life etc. Likewise, the success of young entrepreneurs in the media is often sensationalized more than others, because, well, one cannot deny it is an extraordinary feat. It also tells an amazing yet compelling story. From Forbes’ lists to the popular success stories of Steve Jobs co-founding Apple at 20 and Bill Gates and Mark Zuckerberg dropping out of college to focus on their ventures at 19 – this creates the allure of finding entrepreneurial success at a young age.
The Reality
Entrepreneurship has no bias when it comes to age. In fact, a widely mentioned 2018 study I found in my research, concluded that the average age of entrepreneurs at the time they founded their companies is 45. Additionally, a new book called Super Founders: What Data Reveals About Billion-Dollar Startups reported that the median age of the founders when starting their businesses was 34. This data was pulled from startups valued at $1 billion or more created over the last 15 years.
However, if we want to talk success stories in relation to age, a notable mention is Jeff Bezos, the founder of Amazon who launched the company at 30 years old. His business has grown since then and he became a billionaire at 35 and is now one of the richest in the world. Furthermore, even though Steve Jobs started Apple at a young age, his most profitable invention, the iPhone did not come until 32 years later, when he was 52.
As we mention the journeys of Bezos and Jobs, one key takeaway we can acknowledge is that not only can success come later in life but also with age comes experience. From the time of starting the business, to all the times spent researching and perfecting, you learn more to gain more and become a greater success. Once you have accomplished it all, it also takes some level of maturity to be able to manage and receive your success.
While there is great focus placed on the early successes of Mark Zuckerberg and even Bill Gates, what many may also fail to realize is that with all the challenges and risks that come with entrepreneurship, when one finds initial success at a young age, it is a fantastic achievement that deserves to be highlighted.
As a result, younger generations are showing an interest and gravitating towards entrepreneurship, especially during this pandemic. While this is admirable, we do not want young people falling into the trap of wanting to find success at an early age because in reality, there is a lot to learn that comes with being an entrepreneur and success is not guaranteed immediately.
So, although the fresh college dropout who finds success starting his own business is a great story, it might not be your story. So don’t let that deter you because age really does not matter. It obviously didn’t matter to Colonel Sanders who started KFC when he was 65!
2. Entrepreneurship requires a business degree
Another common notion is that launching a business requires a business degree or an MBA. A formal education grants you more opportunities, it allows to better understand the inner workings of business before entering the industry and builds your credibility.
The Reality
An MBA or any other business degree is not a requirement for entrepreneurship. Undoubtedly, education has its benefits, and that is why many people opt to get a degree in their niche like engineering, or computer programming rather than a business degree. People are often more interested in getting an extensive range of skill sets and the expertise necessary to develop in-depth knowledge about the industry.
Likewise, the business world is again full of popular success stories that show that you do not need a business degree to start. On one hand, we have Jeff Bezos who received a Bachelor of Science in Electrical Engineering and Computer Science while Elon Musk , centibillionaire and CEO of Tesla, graduated with two degrees – one in Economics and the other in Physics. Mark Cuban is a business man and serial entrepreneur. He graduated with a Bachelor’s in Management and explained that he is not a fan of MBAs. He states that “there are so many online ways to learn and I think you can get far more experience in the workforce and learn more and be in a better position to succeed.“
On the other end of the spectrum are those who failed to continue pursuing an education like Jan Koum, co-founder of WhatsApp and Travis Kalanick, Uber’s co-founder who both had enrolled to study computer programming and computer engineering, respectively. Another dorm room legend, is Michael Dell, founder of Dell who quit college in his very first year there.
This is in no means a discouragement or a deterrent towards education but what it points out is that you can get a degree but it does not have to be one in business. Importantly, it also in no way guarantees success and it is not a condition that has to be met in order to pursue entrepreneurship.
Additionally, once you do get a formal education, it does not stop there. As an entrepreneur, you are constantly evolving, curious and wanting to learn more and be more innovative. That requires reading, researching, developing and experimenting on your own. You also learn from experiences and develop critical thinking, strategic planning and problem solving that just cannot be formally taught.
In conclusion, you do not need a business degree or MBA to start a business. It is a combination of ways that one can gain knowledge before starting. And while it is possible to be successful without an advanced education, there is no guarantee of that success with or without a degree.
3. Entrepreneurs take huge risks
A popular conception regarding entrepreneurs is that they are risk takers. We even cover it as one of the qualities of an entrepreneur that one must nurture and develop. People believe that entrepreneurs are taking extreme risks daily and that grants them success. Risk is presented as a great deviation for the norm and putting it all on the line. Again, we can attribute some of that perception to the media. The single mom of two who comes up with this great idea from her garage while still working two jobs will make headlines rather than the college graduate that comes up with an amazing invention in his free time after his 9-5.
The Reality
Starting a new venture in itself is risky.
In fact, Zuckerberg asserts that “the biggest risk is not taking any risk. In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.”
Does this mean risks are being taken just because they present themselves? No.
But how the risk is approached is what makes the difference.
Mark Cuban shared on CreativeLive’s 30 Days of Genius, that he hates taking risks. But his approach is mitigating that risk with thorough preparation. He spends time conducting extensive market research and keeping up to date with industry trends in order to take more calculated risks.
Smaller bets and combatting lesser losses will prepare you to take more calculated bets in the future. They are able to balance and manage their risks which is a skill that is developed with time.
Essentially, entrepreneurs take calculated risks and many times after evaluation, they may decide not to take that risk at all. Also, they may take a risk in one area, then play it safe in another one. They are masters of understanding the risk-to-reward ratio and actually aren’t taking risks as some sort of addiction.
4. Entrepreneurs always have great, new ideas
There is a big misconception perpetuated by popular media that having a different and brilliant idea means instant results. The hard work, sleepless nights and determination to achieve are not highlighted. On the contrary, the ideas that have failed before getting to the winning one is almost never featured.
Certainly, having an excellent idea is the start but it is also misleading to think that the one idea will be an overnight success.
The Reality
You can have a good idea and it is not successful. Entrepreneurs have failed many times even with hard work and dedication.
Zuckerberg has advised that “the greatest successes come from having the freedom to fail.” He had also built games, chat systems, study tools and music players. But none of those inventions gained traction. Even though nobody likes failure, it is necessary as it allows you to grow and learn from the experience.
“One success, one winner can pay for dozens and dozens of failures” Bezos has said.
On the bright side, every idea starts small then blossoms into greatness. Just think of how e-commerce and tech giants, Amazon and Apple got their start. But an idea doesn’t just bloom on its own. It takes proper execution that involves planning, researching, improving and more.
Billionaire entrepreneur, Richard Branson says the key to finding a good business idea is noticing what could be improved in your own life. He advised that entrepreneurship in its truest form is about identifying a gap in the market and creating something to fill that gap to improve people’s lives.
Furthermore, all successful businesses aren’t born from unique ideas. You don’t have to reinvent the wheel to be successful in entrepreneurship. There are numerous businesses with the same concept.
Zaxbys, Wingstop, Buffalo Wild Wings and even Hooters are restaurants known for their wings. Aren’t they entrepreneurs?
5. Entrepreneurs are only motivated by money
Starting a business requires great motivation. You will need motivation to give you the drive to continue pursuing your dreams despite all the obstacles you may face, to keep your focus and maintain the hard work and determination.
So what can be a greater motivator than money? Many pursue entrepreneurship because they believe it is an easy way to gain great financial rewards once you have a great idea.
The Reality
True entrepreneurs are rarely only motivated by money. This is because an entrepreneur is cognizant that starting a business is a journey and money does not always come immediately. If personal wealth is your sole motivation then what happens when you are not able to reap any of the monetary rewards within a specified time? You will only get discouraged and fail to want to continue. Additionally, if getting rich is your sole source of inspiration, you will make decisions for the wrong reasons which can hurt your business instead of helping it.
Needless to say, money can be good motivation but it cannot be the single reason for your pursuit. What that means is that even if the money doesn’t come, you still have the will and drive to want to do it anyway.
So what else drives entrepreneurs to success?
Successful entrepreneurs are more focused on satisfying internal interests and desires which will likely lead to more success and ultimately increased satisfaction. They set goals that are centered around finding a purpose, a deeper meaning and making a difference while doing so.
Elon Musk, in speaking at the National Governors Association 2017 Summer Meeting stated “The thing that drives me is that I want to be able to think about the future and feel good about that. We are doing what we can to have the future be as good as possible, to be inspired by what is likely to happen and to look forward to the next day.”
Life on Mars is a goal of Musk’s SpaceX, which aims to use reusable rockets to eventually create “a self-sustaining civilization” there. To sum it all up, as bizarre as it may seem, Musk has a desire to change the world that he is living in and that is the purpose and meaning that keeps him motivated.
Another means of motivation is problem solving. When Zuckerberg launched Facebook, he says he was simply solving a problem around him and he wanted to make an impact. He saw that there was a need to connect people at colleges and created something to fill that gap which made him filthy rich in the process.
Your passion is also a driver towards keeping your focus even when it is difficult. In the words of Steve Jobs, “Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do.”
Money is a factor for motivation but it is not as important as people make it to be. It is the long term that matters with entrepreneurship so if you are in the business for a get-rich-quick scheme, revisit and refocus why you got into it in the first place.
Disclosure: This post may contain affiliate links. At no additional cost to you, if you should make a purchase through these links, we may earn a commission.
