There are many commonly held beliefs about entrepreneurs that are misconceptions. Entrepreneurs are often regular people like you and me, who dedicate themselves to working for themselves rather than a big corporation. David E Rye, author of How to Start and Operate a Successful Business, attempts to dispel some of these myths.

Myth: Entrepreneurs are born
Most people believe that entrepreneurs were born with their talents, however experts agree that they learn to become entrepreneurs. This can be seen in the number of entrepreneurship programs offered at various learning institutions.

Myth: Entrepreneurs take risks
Entrepreneurs are often thought to be high risk takers, however they know that taking big risks is dangerous. Entrepreneurs prefer situations in which they can influence the outcome, and they only take on challenges when they believe that they are likely to win. Entrepreneurs have an inherent ability to understand the complex, and they rarely act until they have calculated all the risks associated with a venture.

Myth: Entrepreneurs are motivated by money
Any entrepreneur will tell you that starting your own business does not guarantee you a quick buck, but rather that it will take you up to three years before you make a profit. During the start-up stage of the business, entrepreneurs aim to break even, and prefer to reinvest in the business rather than splash out on fancy cars or big houses. Entrepreneurs look to establishing future financial security, in order to expand their business, rather than immediate gratification.

Myth: Entrepreneurs have no personal lives
While it is true that entrepreneurs work long hours, this is not unique only to entrepreneurs - many managers and executives in large corporates work long hours as well, however the entrepreneur has more control over how they spend their time. While entrepreneurs work long hours, their private time is important to them and they will take time out to be away from their business.

Myth: Entrepreneurs are introverts and loners
While it is true that an entrepreneur may spend many hours alone in the initial development of their ideas, the successful entrepreneur knows that he or she needs to learn from the experience and ideas of others. Entrepreneurs will ask for advice and make many important contacts.

Myth: Entrepreneurs are "high-tech wizards"
While there are a couple of well publicised high-tech success stories (e.g. Bill Gates), only a small amount of today's small businesses can be considered to be high-tech. It does not take high-tech to make an entrepreneur, but rather high profit margins!

Myth: Entrepreneurs are job hoppers
Entrepreneurs use the corporate environment to learn everything that they can about starting and managing a business, and many work for large companies for a number of years before going out on their own.

Myth: Entrepreneurs rely on Venture Capital
In truth, entrepreneurs will only use venture capital as a last resort, as they know that it is one of the most expensive forms of funding they can get. Most entrepreneurs will rather rely on their own savings or borrow from friends or banks.

Myth: Entrepreneurs are deceptive!
Some people think that in order to be successful on your own you need to step on people and be deceptive in your methods. The opposite is in fact true, in that entrepreneurs need to establish networks and contacts to help spread a good reputation.

How to Start and Operate a Successful Business by David E Rye is available from Exclusive Books, ISBN: 1-58062-006-X, for approximately R93.00
See www.exclusivebooks.com

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