Business

The 8 myths about entrepreneurs that you should stop believing

Get rid of the eight misconceptions about entrepreneurs and encourage you to start your business.

Popular knowledge is sometimes not very wise. Prejudices about entrepreneurs abound. Sayings such as “it is easy to create a company” or “success depends only on luck” are frequent in conversations. Here we give you a list of some of the most frequent myths, and we demolish them with the help of some experts such as Scott Shane, author of the book Illusions of ship; The costly myths with which entrepreneurs, investors and policy makers are governed .

s are born, they are not made

More than an excuse, a myth. At present, business schools are blurred all over the world and self-learning books to achieve success abound in bookstores. It is undeniable that some basic physical and mental conditions are needed, such as good health, willingness to work and intelligence. But the employer must also learn to be, there is no way that the child is born knowing everything and it is statistically verifiable that it is not necessary to be a descendant of entrepreneurs to be.

The creation of a company is easy

The 8 myths about entrepreneurs that you should stop believing
The 8 myths about entrepreneurs that you should stop believing

It is not really so and most people who start the process of starting a new business fail. Seven years after starting the process of establishing a company, only a third have a positive cash flow greater than the salaries and expenses of the owners for more than three consecutive months.

It takes a lot of money to finance a new business

It is not true. The typical start-up only requires about 25 thousand dollars. Successful entrepreneurs who do not believe in myth design their companies to operate with little cash. They finance or rent instead of paying cash, pay commissions instead of salaries.

Banks do not lend money to new businesses

Another myth Federal reserve data shows that 16% of all financing provided by the financial sector corresponds to companies with two years or less created and this value is higher than the typical sources that everyone talks about going: friends , family, angels, venture capitalists, strategic investors or government agencies.

Most entrepreneurs start businesses in attractive industries

Sadly, the truth is just the opposite. The correlation between the number of entrepreneurs who start business in an industry and the number of companies that fail in the sector is 0.77. This means that most new entrepreneurs choose industries where they are prone to fail.

The growth of the new company depends more on the talent of the entrepreneur than on the type of business chosen

The industry where you choose to start has a huge effect on the chances of growth. In the last 20 years, a company in the IT sector had 840 times more possibilities for rapid growth than a company in the hotel sector. There is no discovery about the effect of entrepreneurial talent that has a similar magnitude on the growth of new businesses.

Most entrepreneurs are financially successful

ship creates a great deal of wealth, but it is distributed unevenly. The average profit of an entrepreneur is $ 39,000 per year. The typical entrepreneur earns less than he would get working as an employee. Only 10% achieve higher remuneration. Many companies achieve sales growth than investors. Of the 590 thousand companies that are founded each year in the US only 1.6% achieve sales for more than 5 million in the first 6 years, 0.08% reach 50 million expectations of sophisticated angels and only 0.03%, 200 companies, reach 100 million in sales that It is the figure that venture capitalists look for.

Luck is everything

While luck can help, it is not decisive. Actually, more than luck a good entrepreneur need the right attitude to capitalize on opportunities. Many have missed a good opportunity and did not see it or did not take it. The one who is lucky is because he has the ability to take advantage of it.

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