4 Misconceptions on Entrepreneurship

Doing something for the first time don’t always provide satisfying results; this is partially true especially when getting started in businesses. In line with that, the lack of knowledge and experience can be harmful to the company you are beginning.

Here are four misconceptions on entrepreneurship.

Entrepreneurship is Simply Opening a Business

Contrary to what most think, entrepreneurship is a long process. Opening the business is just the first step. After that, a long process of environmental scanning will take place. Following that is when you will identify the opportunities and threats to your business. Then you will also create a business plan and feasibility study to increase your chances of succeeding.

Various stages also will follow as your business grows, so you can ensure that your business is not being stagnant. Allowing your business to expand will then create more income for you.

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Entrepreneurship Only Applies to Manufacturing Businesses

Entrepreneurial concepts also apply to other types of businesses as well. Merchandising is also a business. In merchandising, the creativity and innovation needed are minimal, for you are selling to sellers. However, this kind of business will still provide high income if done correctly.

Another kind of business is a service-providing business. A few examples of this are barbershops, makeup services, spas, and salons. These businesses do require more creativity but need less money since your skills are your capital.

Entrepreneurship Only Applies to Degree Holders

A degree will provide an advantage, but will not assure success — one’s ability to analyze threats and opportunities matter more than the degree. There are also a lot of successful entrepreneurs that are college dropouts.

Mark Zuckerberg and Steve Jobs are great examples. Zuckerberg dropped out to devote himself to Facebook full-time, and Jobs also dropped out to start Apple. Jobs and Zuckerberg weighed the opportunity and threats that were presented and successfully did it. As a result, Zuckerberg now has a net worth of $71 billion as of 2018, and Jobs has a $10 billion net worth when he passed away in 2011.

Entrepreneurship only Applies to Good Economy

An entrepreneur can find opportunities in both good and bad economies. In distressed economies, big businesses usually decrease their output. On the other hand, small businesses are expected to increase their production output.

Both kinds of businesses may suffer in a bad economy, but it is still up to the owner on how he/she will act. The owner must also be able to maximize other assets that they have for the business to sustain itself.

Following entrepreneurial concepts will increase your chances of succeeding, but it will not assure anything. If you are getting started in businesses, you must always be willing to know more. The knowledge you have will always be one of the greatest assets you have as go on this risk-taking venture.