Just Read: The Illusions of Entrepreneurship – Part II

Business plan

Caution for Entrepreneurs

Prospective entrepreneurs should also think hard before venturing into new businesses, especially if they are already gainfully employed. The data show that the most educated and experienced are able to find high-quality jobs, leaving entrepreneurship to people with fewer options. Most entrepreneurs start companies because they are fed up with working for someone else, not because they are well-suited to the new role.
They also choose the wrong types of businesses. Often, they stay in the sector of their old employment. Also most rookies choose businesses in sectors with lower barriers to entry, rather than based on rigorous research to ensure a good fit for long-term financial and personal success.

This does not mean that no new businesses should be started. It just means that when going into business, careful thought is needed. The choice of sector, the business model, resourcing should all be carefully considered and executed.

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