Five myths of entrepreneurs

These days, when entrepreneurship is put forward as the solution of the cultural field’s economic difficulties, and when funding bodies on all levels are talking more frequently of Artists and cultural organizations having to be more entrepreneurial, searching for “sponsorship”, “alternative funding” and “market demand”, it might be time to kill some myths.

An issue of the Economist this spring (March 14–20, 2009) with a special focus on entrepreneurship, put forward five myths of entrepreneurs that needs to be put aside if we are to understand and catalyze entrepreneurship.

Myth 1. Entrepreneurs are lonely, socially incompetent geniuses that come up with great ideas. Instead, the article argues, entrepreneurship is a social activity. An entrepreneur might be very independent, but needs a business partner or social networks to succeed.

Myth 2. Most entrepreneurs are extremely young. Some have been very young, like Steve Jobs and Bill Gates, the article lift forward. But a significant amount is also older, like Gary Buller who started the GPS company Garmin at the age of 52.

Myth 3. Entrepreneurship is driven mainly by venture capital. In fact, venture capitalists fund only a very small fraction of start-ups. Majority of money put into start-ups, the article shows, come from personal debts and of the “three f:s”: Friends, fools and families.

Myth 4. To succeed, entrepreneurs must produce a world-changing product. Instead, experience shows that the most successful entrepreneurs focus on processes rather than products.

Myth 5. Entrepreneurship cannot flourish within large companies. Small start-ups are very important, the article points out, but also large companies are being successful in keeping an attitude of entrepreneurship. The company Johnson & Johnson is put forward as an example.

The personal computer, the mobile phone and internet has made entrepreneurship flourish. Many initiatives has grown since these technological changes were introduced, entrepreneurs come from all parts of the world. Due to falling prices in communication, a global market can be reached instantly.

One interesting initiative is the The Indus Entrepreneur (TIE), started in Silicon Valley in 1992 by a group of Indian entrepreneurs living in the valley. Today they have 12.000 members spread in 12 countries. The idea was to promote entrepreneurship through mentoring, networking and education. A network meeting is held in Stockholm, on 27th of May, organized at the Stockholm-based meeting place the Hub.