In addition to my studies in strategic management and economics, I am very interested in entrepreneurship. It only seems natural given the increasing rates of entrepreneurship in this country and the fact that the United States leads the world in rates of entrepreneurial activity. Plus, people are risking very large pools of capital in launching new start-ups.
So, what’s the problem? The problem is that the three facts I just cited are flat wrong. The rate at which start-ups are forming in the US is actually declining over time, and the US ranks quite low across a number of measures of entrepreneurial activity. And the large capitalization of new businesses? The typical start-up only requires about $25,000 in capital.
How do I know these facts are wrong? Because I just finished reading The Illusions of Entrepreneurship by Scott Shane, one of the top scholars in the field of entrepreneurship. With a very readable approach, Shane shatters some of the most common myths surrounding entrepreneurship using the best evidence we have available regarding those who actually engage in the process of starting new businesses. Shane also provides useful advice for those who want to become entrepreneurs themselves based on the real facts. Take the quiz and see how well you know the facts.
My favorite quote from the book:
But the odds of getting venture capital are lower than the odds that you will get hurt mowing your lawn (3,623 to 1) or fatally slip in the bath or shower (2,232 to 1). When you are thinking about your new business in the shower tomorrow, don’t ponder getting venture capital, think about making sure you don’t fall. The chances are that it will be a better use of your time.
For less than $20 on Amazon, this book is a steal for anyone interested in studying or practicing entrepreneurship.
No comments:
Post a Comment