The connection between Entrepreneurs and risks is clear. The dictionary can scarcely define an entrepreneur without including the fact that he accepts risks as part of his fundamental job descriptions.
While we cannot remove risks from businesses generally, and entrepreneurship specifically, there is a clear difference between taking risks and having risky behaviors. There have over time grown a number of myths about the entrepreneur that must be perforated.
Entrepreneurship may be hard, but you also need to be very sane and collected to make it consistently over a period of time in this business.
Here are a list of 4 myths and what actually happens.
1. Myth #1; All Entrepreneurs Exhibit High Risk Behavior
Ross Levine of the Haas School of Business, University of California at Berkeley, and Yona Rubinstein of the London School of Economics’ Department of Management studied the traits associated with successful entrepreneurs, using longitudinal data that included individuals’ responses as teenagers.
They found that “aggressive/illicit/risk-taking tendencies,” when combined with intelligence and other factors, helped predict success in entrepreneurship.
While this study has been proven true in some cases, there are also just as many entrepreneurs who have never shown high risk behavior who are successful.
Successful entrepreneurs know that all their mental energies need to be directed towards their business and so they stay healthy and avoid all the health and strength draining activities like, smoking and alcohol abuse. They know that any run-in with the law naturally reflects on their businesses.
Does it mean Entrepreneurs don’t take risks?
They do! But they carefully calculate things, study statistics, ask questions, carry out huge surveys, quantify risks and even have risk management soft wares to aid them.
They readily face challenges if they believe the odds are in their favor, and not blindly. I mean, it will still always be a risk to throw money into a venture you cannot vouch for 100%, but their cautious approach makes me call entrepreneurs calculated risk takers, and not just risk takers.
2. Myth #2: Entrepreneurs Are Mainly Motivated To Get Rich Quick
If you wanted a get rich scheme, entrepreneurship is not the way. The goal of entrepreneurship is profit and the result of consistent profit and increase in profit is riches, but it is still a myth that entrepreneurs are primarily concerned about quick bucks.
New businesses usually take from one to three years to turn a profit on the average and an entrepreneur is generally considered to be doing well if He or she breaks even during the business start-up stages.
Successful entrepreneurs do not buy anything they do not need, such as fancy cars. Most drive junk cars and use their surplus money to pay off debt or reinvest it in the business. Their focus is on creating a company with a strong financial base for future expansion.
An entrepreneur has to be motivated by money to endure this, but they are more about strategy and patience.
3. Myth #3: An Entrepreneur Has To Be an Expert in The field Of His Business
The first business I ever started and grew successfully was one I had not previously seen myself in and I previously had no knowledge in.
Entrepreneurs are motivated by opportunities and strong ideas, when strong ideas researched reveal real opportunities then often times an entrepreneurship venture is born. Many entrepreneurs make a business out of their passion, but many more just take advantage of open opportunities and learn on the job.
Besides, you only need to have one real expert on the staff and it must be you. If an entrepreneur has a strong idea outside of his field, he partners with someone who does have that expertise. The plain truth is, you don’t need to know it all, but you can learn and partner.
4. Myth #4: Entrepreneurs Are Hermits And Loners
Entrepreneurs will often retreat to think and work on an idea, they may even be found tinkering with stuff in a garage or an office for days, but how do they execute the ideas that they harvest in solitude?
Real entrepreneurs have to be skilled in the art of marketing themselves and their business. They know that they have to cultivate all sorts of partnerships to be able to execute their business ideas and plans and they know that entrepreneurship thrives on the wings of relationships on all planes.
Business is a world that requires a lot of traits to survive in, but these myths are not part of them.
This article was originally written by Toby Nwazor and appeared here.