1------------ Common Myths

 
three most influential myths related to entrepreneurship.

1) Financial Capital vs. Human/Social Capital

2) Solo Entrepreneur vs. Co-Founding Teams

3) Friends/ Family vs. Professional Partners

MYTH # 1: FINANCIAL CAPITAL VS. HUMAN/SOCIAL CAPITAL

We conducted a survey during IIM Bangalore's annual entrepreneurship event
(EXIMIUS) and asked people who attended as what is the biggest stumbling
block to starting a venture? 

The response overwhelmingly was 'lack of finance'.

While it is true that a lot of startups fail to achieve their potential because
funds dry up, current research on entrepreneurship shows that the main cause
driving startup failures is not primarily due to lack of funding.

As per Noam Wasserman's research (The Founder's Dilemma), almost 65% of

startups fail because of various people issues. These include, but not limited to,
inability to hire the right talent and inability to take all stakeholders along -
employees, investors, suppliers, partners, customers, etc.

Also, there is a lot of buzz in popular media about the role of venture capital
funding. Recent Kauffman Foundation research highlights that only 5% of
entrepreneurial funding is through venture capital (check Kauffman Blog
through this link)  

Thus, more often than not it is not the lack of financial capital, but the inability
to identify, influence and build the right human/social assets that hinder the
growth of any startup. 
MYTH # 2: SOLO FOUNDER VS. CO-FOUNDING TEAMS
Notwithstanding popular press and the heroic portrayals of individual founders
(for example, Steve Jobs), the process of entrepreneurship is essentially a
collective/social process.

In fact, data from the US (one of the most individualistic cultures as per
Hofstede's cultural parameters and studies) shows that only 16% of ventures
are solo-founded, while a vast majority of startups (84%) are co-founded.

In our research on the Bangalore entrepreneurial eco-system, we have found

that it is important for founders to identify both their strengths and limitations.
After all, no matter how talented each one of us is, each individual is
constrained by their resources.

Given the high levels of volatility, uncertainty, complexity and ambiguity

(VUCA) that defines most startup environments, founders are thus well
advised to identify and form a diverse team of three to five team members
who bring complementing human and social capital to the table.

(see Stanford Technology Ventures Program Youtube video/ Kathleen

Eisenhardt's views on Team Composition - Click here)

MYTH # 3: FAMILY/FRIENDS VS. PROFESSIONAL PARTNERS

It is commonly believed that it would be easier to navigate the volatile world of
startups if we were to have friends/ family members as co-founders. 

While friends/family do constitute a very important source of funding (and

thus a key investor constituency), it is important to appreciate that when it
comes to identifying people to build a nascent product, service, market or firm
it is important to identify people who have complementing skill-sets and who
can conduct themselves professionally.

Research bears out this view. Noam Wasserman finds that while 50% of

ventures are founded with friends and family, teams comprising of friends and
family are the least stable of the various types of teams and thus the least
likely to succeed
Concept of Equifinality:

There's a concept called equifinality, which suggests that

similar results may be achieved with different initial conditions and many different ways.

Many a time, we assume that entrepreneurs and their paths to their ventures
are similar. This could be because of news, popular media, and social networks
etc. Be cautious that this is not always true!

There are multiple ways to start a venture and multiple paths to run a venture.
This follows the principle of equifinality. Equifinality is the principle that in
open systems a given end state can be reached by many potential means. In
simple words, it suggests that same results can be achieved with different
initial conditions and through many different paths.

There's a concept called equifinality, which suggests that

similar results may be achieved with different initial conditions and many different ways.

Types of Entrepreneurs:
1. User Entrepreneurs-Alma Nourisher
Alma Nourisher addresses child nutrition problems at the pre-school stage and helps
parents and teachers flag irregular height, weight, and eating habits. Such preventive
programmes can help with nutrition for child improvement. The social enterprise
offers guidance, analytics, and knowledge resources for a fee of Rs 300 per child per
year.

Read more at: https://yourstory.com/2016/12/social-enterprises-impact-metrics

https://yourstory.com/smbstory/waterscience-water-purification-entrepreneur

2. Take -a -Break Entrepreneur- Achitra Borgohain

This is someone who wants to become an entrepreneur but doesn't have a clue as to what
sort of venture she wants to start. So, this person decides to take a break and be away from
 day-to-day hassles that one finds being a part of a regular job and spend some time just
reflecting on what is that big problem that they would like to solve.
http://www.theweekendleader.com/Success/2747/bin-there-done-that.html
3. Moon lighting entrepreneur - Thanmaya Bekkalale
This is someone who has some clarity as to what she would like to do. However, before committing
to an idea completely, she chooses to work on it part-time. Thus, they would continue to work full-
time in their regularjobs or other activities while tinkering over the idea, seeking feedback on the
same, and fine-tuning it during their spare time. Usually in the evenings or over the weekends.
Further, the full-time job serves as a source of either skill or networks and the savings and if it will
serve them well when she finally starts the venture.

http://www.schooloffishtech.com/

4. Accidental entrepreneur- JUST BOOKS

http://www.forbesindia.com/article/work-in-progress/reading-made-easy-why-just-books-
libraries-work/25832/1
5. Make Dent entrepreneur- Amagi Media Labs
https://www.amagi.com/about/philosophy/

https://yourstory.com/2015/02/smac-day-2015