7 common myths about entrepreneurship (Busted)
The craze to found a startup is rising exponentially and is the most positive indicator of the economy’s growth. However, with the popularity comes some misconception and myths about entrepreneurship that needs to be addressed.
Thus, this blog post bust some myths to help an entrepreneur know the reality of building something on own. Commonly heard misconceptions related to characteristics of entrepreneurs and success are addressed here.
Myth #1: Entrepreneurship is a sure-shot way to build wealth
Profit is the goal of any business, but many people, especially young entrepreneurs, mistake that entrepreneurship is a quick route to being a wealthy person. But the reality is completely different, as entrepreneurship doesn’t guarantee anything but learning, personality growth, and perseverance.
Entrepreneurship is one of the toughest professions. Almost 90% of startups fail in their first year. Those who survive; struggle to generate profit. In the initial years, a startup just rapidly burns the funds to grow and achieve scalability. Thus, it is not a shortcut nor a sure-shot way to build wealth.
In the end, it is important to know that entrepreneurship is about finding a unique solution to a common problem and building a scalable and revenue-generating model around it.
Myth #2: Ideation is the most crucial stage of a startup
Many people have the misconception that a good idea is the most important part of a startup. Ideation is a reflection of your passion and purpose, and it does determine the trajectory, but it is just the 1% of the entrepreneurial journey.
The success and survival of the business depend on lots of things than just ideation. A business grows with seamless execution, improvements, and feedback from the customer.
Also, no matter how great a product or service is, if it is not known to the target audience, it will never bring growth for the startup. Thus, the right utilisation of marketing channels and creatives can make a significant impact.
The success of a startup is a combination of lots of controllable and uncontrollable factors, and the idea is just a tiny part of it. So, a young business enthusiast should not just focus resources on the best idea.
Myth #3: Becoming a successful internet entrepreneur is easy
With the ease of internet connectivity and digital penetration, the information access is just at the tip of the finger. But many times, wrong or half-baked information can make a young professional fall into a trap.
To earn more, people spread false information about the ease to start an internet business and glorify the funding valuation of some startups. An enthusiast falls prey to such contents and considers walking on the same line without looking at the complete picture and gravity.
Starting as an internet entrepreneur is sure easy, but achieving success and earning some profit is a different ball game. You have to learn many things and persist to even make people follow your content.
It’s a process of a long time, and instant results are just a hallucination. Internet space is supersaturated, and you have to go the extra mile to acquire and delight customers.
Remember, if it’s easy then many people can do it. Success is achieved by a few. In the internet space, you have to be persistent, unique, and honest to walk the path of success.
Myth #4: MBA is necessary for an entrepreneur
Entrepreneurship and MBA has no relation as such. If you dare to start something on your own, face uncertainties, lead people, and drive profit, then you are far ahead of a person who is academically sound in business administration.
Entrepreneurship demands character, taking the right decisions at the right time, and thinking of solutions that are out of the box; these things can’t be taught in a school. The only school that builds an entrepreneur is a live market.
A person with an MBA can become a successful entrepreneur, but a successful entrepreneur doesn’t necessarily have to have an MBA.
Myth #5: External funding is necessary to go big
Funding does help a startup to increase its footprint and expand the range of products and services, but it’s not necessary. Fundings and high valuations glorification sure hide the fact the ownership and decisive power of an entrepreneur dilutes with each round of fundraising.
The goals of the startup should be only to go big and increase profit margins rather than looking for valuation. Many entrepreneurs take such financial decisions and find success in the same. Take the example of unicorn Indian startup Zerodha; it went big but remained bootstrapped.
Myth #6: An entrepreneur should not quit
Perseverance is surely the foremost quality of an entrepreneur, and the preparation should be for a long haul and uncertain future. An entrepreneur should not give up easily and must find ways to innovate and sustain the business.
However, it is a wrong presumption that an entrepreneur never quits in his life. Many successful entrepreneurs have quit multiple ventures in their initial days to find success in their new startup. It is important to quit if things are not working after the utilisation of all the viable solutions.
It is crucial to learn from past failures and make sure that the mistakes will not be repeated. A fresh start with learnings from the past improves the chances of business success.
Myth #7: A founder is responsible for the success
Though a founder sets the foundation and vision for the startup, he is just the tip of the iceberg. The success of the startup not only depends on the leadership qualities of an entrepreneur but also on the individual contribution of the first employees.
A founder should be humble and accept the fact that employees play a crucial role in driving sales and profit. Thus, it is essential to make every employee feel like a partner in the organization than just an employee who must be dictated to work.
Conclusion:
The knowledge of entrepreneurship comes from getting into the real world and slogging your gut out. Also, there isn’t a designated path to success in entrepreneurship; it all depends on an individual’s conditions, decisions, and industry. So don’t fall prey to the myths mentioned above. Go out there and test your ideas and skills.
What are some myths of entrepreneurship you have come across? Share them in the comment sections to kickstart an insightful conversation.
