Myth 1: Entrepreneurs are doers, not thinkers
- Reality: Although entrepreneurs are action oriented, but they are also a thinkers
- They make careful plan & strategy.
- Entrepreneur will try to come out with alternative action towards a solution.
- In the era of globalization & hyper-competition, entrepreneurs need to be good thinkers.
Myth 2: Entrepreneurs are born, not made
- The idea that the characteristics of entrepreneurs cannot be taught or learned. Entrepreneurs are born with special traits or characteristics.
- Traits such as include aggressiveness, initiative, drive, a willingness to take risks, analytical ability, and skill in human relations.
- Reality: Like all disciplines, entrepreneurship has models, processes, and case studies that allow the traits to be acquired through learning.
- Reality: Research has proven that entrepreneurs can be produced, and it is not limited to certain race, group or individuals.
Myth 3: Entrepreneurs are always inventors
- Not all inventors are entrepreneurs.
- Reality: Many successful entrepreneurs are not inventors, but rather use creative ideas in doing something. They will modify & innovate to suit the market demand.
Myth 4: Entrepreneurs are academic and social misfits
- This myth results from people who have started successful enterprises after dropping out of school or quitting a job
- Long time ago, educational and social organisations did not recognise the entrepreneur
- Reality: The entrepreneur is now viewed as a highly educated professional, who is well versed and sociable with excellent communication skills, and strives in economic development of the community & the country.
Myth 5: Entrepreneurs must fit the "profile"
- Many books & articles have presented checklists of characteristics of the successful entrepreneur
- Reality: It is not necessary for the individual to have ALL the characteristics, as described previously, to become a success (only some will do).
Myth 6: All Entrepreneurs Need Is Money
- Every biz. venture needs capital to survive
- Large number of business failures occur because of lack of financing
- Failure due to lack of financing indicates other problems
- Managerial incompetence;Lack of financial understanding; Poor investments; Poor planning; Reality: Money is a resource, not the ultimate objective.
Myth 7: All Entrepreneurs Need Is Luck
- Being in the right place at the right time is always an advantage
- "Luck" happens when preparation meets opportunity
- What appears to be lucky could really be several other factors
a. Preparation & hard works
b. Determination
c. Desire
d. Knowledge
e. Innovativeness
Myth 8: Ignorance is bliss for an entrepreneur
- The myth that too much planning and evaluating will give rise to problems. In the competitive world of business, which demanded detailed planning & preparation, entrepreneur should be equipped with solid knowledge and strategies, which would be keys to success.
- Reality: Careful planning- Not ignorance is regarded as beneficial, since Key success factors are;
a. ability to identify strengths and weaknesses of a venture
b. Setting up clear timetables with contingencies for handling problems
c. Minimizing problems through careful strategy formulation
- Careful planning is the mark of an accomplished entrepreneur
Myth 9: Entrepreneurs seek success but experience high failure rates.
- Many entrepreneurs suffer a number of failures before they are successful
- Failure can teach many lessons to those who are willing to learn and failure often leads to future success
Myth 10: Entrepreneurs are extreme risk takers (gamblers)
- The concept of risk is a major element in the entrepreneurship process
- While it may appear that an entrepreneur is "gambling" on a wild chance, the fact is that the entrepreneur is usually working on a moderate or "calculated" risk
- Reality: Most successful entrepreneurs work hard through planning & preparation to minimize the risk involved.