The following are some of the myths associated with entrepreneurship:
- Entrepreneurs take wild risks at the start of their business. Even though risk is an integral part of business, the start of business is not considered the highest risk. An entrepreneur is more likely to face bigger risks at the latter stage of the business.
- Entrepreneurs introduce break-through inventions in their start-up business. It would be easy to assume that entrepreneurs introduce new inventions, usually technological inventions. This is not true. Innovation may be important, but what makes entrepreneurship successful is the ability to execute an ordinary idea exceptionally.
- Most successful entrepreneurs have years of experience in their chosen line of business. Bill Gates was still a student when he started Microsoft with Paul Allen. This story of several inexperienced entrepreneurs starting out a new business venture is replicated over and over again in the lives of millions of other successful entrepreneurs.
- One needs a lot of money to start a business. This is not so. Money is not always an important prerequisite to be able to start a business. What sets the successful entrepreneur apart from the not-so-successful is the ability to make do with what little he or she has. For instance, they look for other sources of money such as borrowing to grow their business.
- Start-ups use equity, not debt money. Entrepreneurs who put up equity coming from their own pocket only comprise less than 50% of the total start-ups. The majority of the companies are financed by debt.