Lesson 2:

The Myths of
Entrepreneurship

Specific Objectives:
1. Discuss the ten specific myths associated with entrepreneurship
2. Explain the major differences between an Employee and an Entrepreneur
3. Challenge to take any of the myths given

Motivation:

In the picture presented above describe ENTREPRENEUR.

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Discussion:
“Myth is a folklore genre consisting of narratives or stories that play a fundamental role
in a society, such as foundational tales or origin myths.” These might bring us the knowledge in
encouraging us to be a successful entrepreneur. Then, it might be a challenge for us. Let’s take a
look and discuss deeply the different Myths in Entrepreneurship.
The Myths of Entrepreneurship

A. Entrepreneurs are doers, not thinkers.

l. Entrepreneurs have a tendency toward action, but they are also thinkers.

2. Emphasis today is on the creation of clear and complete business plans.

B. Entrepreneurs are born, not made.

l. Traits include aggressiveness, initiative, drive, a willingness to take risks, analytical

ability, and skill in human relations.

2. Entrepreneurship has models, processes, and case studies that allow the traits to be
acquired.

C. Entrepreneurs are always inventors.

l. This is a result of misunderstanding and tunnel vision.

2. Many inventors or innovators are also entrepreneurs.

3. Numerous entrepreneurs encompass all sorts of innovative activities.

D. Entrepreneurs are academic and social misfits.

l. This myth results from people who have started successful enterprises after
dropping out of school or quitting a job.

2. Historically, education and social organizations did not recognize the entrepreneur.

3. The entrepreneur is now viewed as a professional.

E. Entrepreneurs must fit the “profile.”

l. Many books and articles have presented checklists of characteristics of the

successful entrepreneur.
 2. The environment, the venture itself, and the entrepreneur have interactive effects,
which result in many different profiles.

F. All you need is money to be an entrepreneur.

l. Venture needs capital to survive.

2. A large number of business failures occur because of lack of adequate financing.

3. Failure due to lack of financing indicates other problems.

a. Managerial incompetence

b. Lack of financial understanding

c. Poor investments

d. Poor planning

G. All you need is luck to be an entrepreneur.

l. Being in the right place at the right time is always an advantage.

2. “Luck” happens when preparation meets opportunity.

3. What appears to be luck could really be several factors.

a. Preparation

b. Determination

c. Desire

d. Knowledge

e. Innovativeness

H. Ignorance is bliss for an entrepreneur.

l. Key factors in successful entrepreneurship

a. Identifying the strengths and weakness of a venture

b. Setting up clear timetables with contingencies for handling problems

c. Minimizing problems through careful strategy formulation

2. Careful planning is the mark of an accomplished entrepreneur.

 I. Entrepreneurs seek success but experience high failure rates.

l. Many entrepreneurs suffer a number of failures before they are successful.

2. Failure can teach many lessons to those willing to learn and often leads to future
success.

J. Entrepreneurs are extreme risk takers (gamblers).

l. The concept of risk is a major element in the entrepreneurship process.

2. While it may appear that an entrepreneur is “gambling” on a wild chance, the fact is
that the entrepreneur is usually working on a moderate or “calculated” risk.

Employee and Entrepreneur

There are two types of workers in any organization:

 Workers with an Employee Mindset

 Workers with an Entrepreneurial Mindset

Both being an employee and being an entrepreneur have their own advantages and
disadvantages. Entrepreneurs are often portrayed as happy and free, risk takers that have the
benefits of controlling their own time and income. They often have uncapped potential earning
and can jump from industry to industry using and developing business skills that ultimately add
to their success and experience.

In the real life situation, many entrepreneurs fail. They don’t have the guaranteed income
and work available that a contracted employee can enjoy. Unfortunately, they often don’t have a
team of colleagues to rely and depend on, a paycheck to cash at the end of every month, a
company car and medical insurance, and a chance of career progression within the same
company in exchange for years of service.

So, what would you choose an Employee or an Entrepreneur?

Suggested Learning Activities/Exercises:

Activity 1.

Create and design a graphic organizer that describes between an employee and an entrepreneur.
 Practice Task/Assessment:

I. Choose two (2) of the different kinds of Myths of Entrepreneurship. Discuss briefly
on what you have understood.

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2. __________________________________________________________________
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Assignment:
1. Make a reaction paper. Why there is a Myth? Do we need to follow any of the myths
in order to be successful?