UILDING

M Y T H S N DR E A L I T I EC O N C E R N I N G T R E P R E N E U R S H I P A S EN
Acc'ordingto noteclauthor-lecturer-consultant Peter Drucker, entrepreneurs defy stereotyping. He states, "l have seen people of tl-renrost cliversepersonalities and tenrperamentsperlbrm well in entrepreneurial challenges."'This suggeststhat some entrepreneursmay be true eccentrics while clthersare rigid conformists; solne are sl'rortand fat while others are tall and thin; solne are real worriers while others are very laid-back autl relaxed:some clrink and smoke verv heavily while others abstain completell':some are people of ereat wit and c:hamrwhile otl-rers have no more personality than a frozen fish. Despiteall that is knorvn abcrutentrepreneurs and entrepreneurship, goocldeal of folkiore ancl many a stereotvpesretnain. Part of the problem is that while sorne generalities mav apply to certain types of etrtrepretreurs and certain situations,most entrepreneurialtypes tend to defy generalization. The following are examplesof long-standing myths about entrepreneurs and entrepreneurship:t' . Myth I Entrepreneursare born, not rnacle. Reality While entreprenerrrs may l-re horn r,r,ith r-.ertain a native intelligence.a flair for innovation,a high lei'el of energy.and a core of other inborn attributesthat vou either have or you don't. it is apparentthat rnerelypossessing these characteristics does not necessarilymake you an entrepreneur. The making of an entt'epreneur occursthrough a combinationof work experience.know-how,personalcontacts,and the development ltusinessskills acquired over time. In fact, other attributesof equal importancecan alscr of be acrquired throughunderstanding, hard work, and patience. . Myth 2 Anyone can start a business.It's just a matter of luck and guts. Reality Entrepreneursneecito recogni the difference between an idea and a real opportunity to signifze ic:antly improvetheir chancesof success. you want to iaunch anclgrow a high-potentialnew venture,you If nrusl unclerstancl many things that you have to do to get the odds in your favour. You cannot think ancl the act like a typical bureaucrat,or even a manager;you must think and act like an entrepreneur.That often meansinitiating action even'i{'conditions uncertain and existing rules have to be pushed to the lirnit. are Myth 3 Entreprenellrsare gamblers. Reality Su<:cessful entrepreneursonly take what they perc:eiveto be very carefullv cralc:ulaterl risks. They ofterrtry to influence the odds by getting others to share the risk with them or by avoiclingor minirnizrngthe risk if t6ey have the choice.They clonot cleliberatelv seek to take rnorerisk or to take unnecessaryrisks. but they will not shy away from taking the risks that may be necessary suc,ceec.l. to Myth 4, Entrepreneurs want to run the whole slrow thernselves. Reality Orvningand mnning the whole show effectively iimits the potential for the business to grow. Single etrtrepreneurs can make a living, perhapseven a good one, but it is extrenrelydiflicult to grow a business lty working single-handedly.Most succ:essful ventures typically evolve to require a frrrmal organization. management a team. and a corporatestructure. Myth 5 Entreprenelrrs their own bossesand completely inclepenclent. are Reality Mosl enlreprenerrrs aref ar from indepenrlent to anrl l-rave servea nrrmherof c:r-rnstituencies ancl:r variety of'tnasters, inciuding partners.investors,customers.employees,suppliers, c:r'editors. their families, anclpressures from social and community obligations.The-vclohave the choice. however.to clecidewhether anclwhen to responcl these pressllres. to Myth 6 Entreprer)eurs work longer and harder than corporate lnanagers. Reality There is no evidence at ail that entrepreneurs work har:cler than their crorporate crounterparts. Sotrte sotnedon't. Both are demandingsituationsthat require lor-rg do, hours antl harclwork. However.as ownersthev are tied to the businessanclresponsil-rle ways that are different frorn ernployees' in lrles. Myth 7 Entrepreneurs far,egrealerstressanclmore pressures.and thus pay a higher personalpric,ein t her r ' . jo l rs :m tl o o th e r In a n a g e rs . th Reality l3eingan errtrepreneur uncloulrterlly is But there is no evirlenceit is stressfulanrl clemanding. any nlore stresslulthan trutnerous otherhighly clernanding professional roles, such as lreing the princ:ipal

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1. Poor cash flowmanagement of of 2. Absence a reliable of hiring and system a lacl< understandi ng how to hi re,retai n,and mot ivat e people the rightjob the right for moni tor ing or of monitoring lacl< understanding use of performance and 3. Absence performance of information payon theirdebts ti me and not coordi nati ng of 4. Poordebtmanagement: a combination not paying ments with incoming flows cash reduced and leveraged debtis not being is 5. 0verborrowing; company excessively the reliance a few keycustomcrs on 0. Excessive wantsandneeds of understandingthe marl<et's 7. Poormarl<et research leading an inaccurate to planning of and 8. Lacl< financial insufficient 9. Failure innovate to 10. Poorinventory management tt 1 1 . P o o r o m m u n i c a t i oh rs u g h o uh e b u s i n e s s c tno and 1-2.Failure recognize ownstrengths wealcnesses to their external help and themselves notseek 13. Trying go it alone; to to attempting do everything
Factors-Thirteen Failure Common [email protected], Corp., Deborah ProfitCranker Barrie, MBA, Principle Source: (www.cbsc.orglalbertaltbl.cfm?fn=tip4), August 18,2004. accessed Failure of Causes Business
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partner in a legal or accolrntingpractice or the heaclof'a division of a major corporationor gttvet'ntrtent Fot'thern it agencv.Most entrepreneurs enjoy what they do. They have a high senseof acc'tttnplishntent. job anclare mut;h of They thrive on the flexibility and innovativeaspecrts their is lun rather than druclgery. less likely to retire than those who work for someoneelse. Myth B Starting a business is risky and often enclsin failure, Reatity This statementis undoubtecllytrue in many instances.Some studies have indicated th* upward of'80 per cent of new businessstart-upsfail within their first five years.However.successtends to be ntore by common than failure for higher-potential ventures becausethey tend to be clirectecl talented antl experienced people able to attract the right personnel and the necessaryfinancial ancl other resources. Vince I-ombarcli, well-known former coach of the Green Bay Packers.is famttusfot' the quotation. the "Winning cluoteof'his is closer to the lrue isn't everything- I1'5 the orulything." But a lesser-known

BYJOHNNY HART

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UILDING

Lombardi was once hearclto remark,'o'We Looking back on a season, personalpl-rilosophy. entrellreneul's learn from experience we clicln'tlose anv sames last seasonn just ran out of time twice." Entrepreneurs anclare inc'linedto believe they have {'ailedif they quit. have to be preparedto run out Owning vour own businessis a competitivegame,anclentrepreneurs experifail but entrepreneurs not. Many well-known entrepreneurs do Businesses oftinte oc'c:asionally. severaltimes, before achieving success. ence failure" sumetitnes Myth 9 Monel' i-r the most important ingredientfor success. Reality If the other importantelementsand the people are there. the moneytends to follow. But it is not if tme that entrepreneursare assuredof succ,ess they have enough molley. Mcineyis one of the least imporlant inererlientsof new venture success. Myth l0 New llusinessstart-upsare for the young anclenergetic. Reality While youth anclenergy may help, age is absolutely no barrier to starting a businessof your own. However"nrany people {eel there is sonrethreshold for an individual's perceivedcapacity fcrrstarting a These facrtors increase new venture. Oi'er tirne you gain experience,competence,and self-conficlence: such your capacitv anclreadinessto eml-rark an entrepreneurialcareer.At the santetinre, c'otrstraints on other obligationsgrow and negativeiyaffect your freedom to choose. as increasesin your financial and 'fhe inclividualreacliness and these restraintstypically result in most high-potential lretrveen trarle-of{.s betweenthe agesof 25 and 40. new businesses lieing startedby entrepreneurs Myth 11 Entrepreneurs are motivated solely by their quest for the almighty clollar. entrepreneursare more driven by the challenge of building their enterprise atrd Reality Grou,th-mirrcled Having Iorrg-tenn r:apitalappreciationthan by the instant gratificationof a high salaryand other rewarcls. a sense of personal accomplishrnentand achievement,feeling in control of their own destiny. and realizing their vision ancldreamsare also powedul motivators.Money is viewed principally as a tool ancl "keeping st,ore." a wav of "in charge." Myth l2 Entrepreneursseek power and control over other people so that they can feel atrrl results are clriven by the cluestfor responsihility,at'ltievement, entrepreneurs Reality Sur.cessful and r-athelLhanfur lx)wer for iLsown sake. They thrive on a senseof at,c'omplishment of outper{urming other rather than a personalneed for power expressedlty dominatingancl c:otttrolling tlre c,onrpetitiorr. 'l'hev peolrle. gain cotrtrolby the results they achieve.

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