This document discusses myths and realities of small business ownership and entrepreneurship. It notes that small businesses are the primary job creators and make up over 99% of US employers. While definitions vary, both entrepreneurs and small business owners contribute significantly to the economy. Common myths include that starting a business is easy and will make you rich quickly. In reality, success depends on traits like passion, creativity, willingness to learn from mistakes, and strong people skills. These traits can be learned. The document provides resources for small business owners seeking more information.

1. Be Your Own Boss!!
Glenn Muske
Rural and Agribusiness Enterprise Development Specialist
NDSU Extension Center for Community Vitality
Glenn.Muske@ndsu.edu
701-328-9718
April, 2011

2. Be Your Own Boss:
Myths, Realities, and Why We Discuss
Why are we here?
Who are we talking about?
What are the realities? And the myths?
Will I be successful? Is it for me?

3. Why are we here?
For: Communities and Economic Developers

4. Why are we here?
For: You

5. Who are we talking about?

6. Small Businesses Are the Base
# of Businesses
Small Businesses
Small Businesses
Myth
Reality

7. Definitions
• Are entrepreneurs and small business owners the
same thing?
– We don’t know (and we don’t care)
• Academic definitions
– Entrepreneur – An individual who establishes and manages a
business for the principal purposes of profit and growth
» Achievement, innovation, planners, growth, risk taker
– Small business owner – An individual who establishes and manages a
business for the principal purpose of furthering personal goals
» Work-life balance, not dominant, slow development
Carland, Hoy, Bolton & Carland
• What about inventors and innovators?
– Great, IF they take the next step and create a business
(or sell/license the idea)

8. Reality
• We don’t care
– Why?
• Both add to the economy
• New businesses (5 yrs or less) are the job creators
• We don’t know who will be the fast-growth firm
• May change over time – maybe several times
• Highly dependent on each other
• World rarely differentiates in broad economic terms

9. What we know about Small Businesses
• 99.7% of US employers (6 M) with 50% of jobs
– + 22,000,000 non-employers + 2 million farms
– ND – 17,448 small businesses (96% of employers)
• + 47,000 non-employers
• 7 to 35% of SBOs fit entrepreneur definition
• Contribute 30 - 50% of business receipts
• Other names – family business, home-based
business, micro business, copreneurs

10. Entrepreneurial Typologies
Serial vs. Single
Opportunity vs. Necessity
Investment vs. Lifestyle
Farm vs. nonfarm
High-tech vs. Low-tech
High-growth vs. Low-growth

11. What are the Myths?
• FREE MONEY
• Get rich quick
• You must be born an entrepreneur
• Right place and the right time
• If you build it, they will come
• You need a great idea
• It takes a lot of money

12. Will I be successful? Is it for me?
These help:
– Passion
– Creativity
– See the need
– Willingness to learn
– Willingness to make mistakes
– People-person skills
– Ability to execute
– Can you make money?
The Secret:
– Traits are not genetic – YOU CAN LEARN THEM!

13. Questions??
For resources: www.ag.ndsu.edu/smallbusiness
Glenn Muske
Rural and Agribusiness Enterprise Development Specialist
NDSU Extension Center for Community Vitality
Glenn.Muske@ndsu.edu

14. Resources
SBA ND Profile -
http://www.sba.gov/sites/default/files/nd12.pdf
Monthly newsletter – email:
glenn.muske@ndsu.edu or go to:
www.ag.ndsu.edu/smallbiz
Online marketing tools
http://go.unl.edu/DirectMarketingFood
http://go.unl.edu/agritourism