The document outlines ten common myths about entrepreneurs and discusses several theories of entrepreneurship. It debunks myths such as entrepreneurs working 24/7, taking lots of risks, and only being motivated by money. It also summarizes theories like the risk bearing theory, entrepreneurship theory, sociological theory, and innovation theory. The document provides an overview of what myths and theories relate to entrepreneurship.

1. Cebu Technological University – Main Campus
Graduate School
JEZHABETH M. VILLEGAS
MPA 606 – MANAGEMENT AND ENTREPRENEURSHIP
SAT 12:00-1:00PM

2. Outline
Ten Myths of Entrepreneurs
Theories of Entrepreneurship

3. What are myths?
Myths reflect the mindsets and goals
of contemporary societies

5. Myth #1: Entrepreneurs don’t have a personal life
• Lots of people think that entrepreneurs
work 24 hours a day, 365 days a year.
• Part of being your own boss means that
you can schedule your own hours – to
some extent.
• One of the keys to being a successful
entrepreneur is mastering your time
management skills.
• Entrepreneurs who can master their
time management skills will have plenty
of time for a personal life.

6. Myth #2: Entrepreneurs take lots of risks
• Entrepreneurs take risks. With that said,
they don’t necessarily take lots of risks
or put themselves in high-risk situations
all the time.
• Entrepreneurs learn how to take
calculated risks.
• Entrepreneurs aren’t gamblers.
Gambling implies there’s luck involved.
Sure – entrepreneurs may have some
good or back luck over time.
• But ultimately, you can’t rely on luck to
run your business

7. Myth #3: Entrepreneurs are only motivated by money
• Financial gain is not the only motivation for small business owners.
• Achieving a lifelong dream is the main motivation for entrepreneurs.
• Financial stability is second on the list. Being financially stable means that you’re
comfortable and able to make ends meet.
• Money is definitely a motivator, but it’s not as important to entrepreneurs as
people assume.

8. Myth #4: Entrepreneurs raise money from venture capitalists
• Not all entrepreneurs raise money from
venture capitalists.
• Venture capital money is on the list, but
personal loans, credit, friends, and family
far outweigh the venture capitalist
funding. If you want to be a successful
entrepreneur, you need to put up your
own money. You can’t guarantee on
securing your finances from banks, angel
investors, or VCs.
• Risking your own money is part of being
an entrepreneur.

9. Myth #5: Entrepreneurs have great ideas
• Some people may not attempt to start
their own business because they don’t
have a unique idea.
• Just because someone has a new and
innovative idea, product or concept, it
doesn’t make them an entrepreneur.
• There’s nothing wrong with taking an
existing idea and making your own
business out of it.
• As long as you’re not infringing on
anyone else’s trademarks, patents, or
intellectual property – it’s fine.

10. Myth #6: Anyone can be an Entrepreneur
• Not everyone can be an
entrepreneur.
• Not everybody has what it
takes to start and run their own
business.
• Not everyone has the
personality or resources to do
this either.
• You need to be highly
motivated to be a successful
entrepreneur.

11. Myth #7: Entrepreneurs have formal training and education
• You don’t need to study
business or entrepreneurship to
have a successful startup
company.
• While education helps, it’s not
completely necessary.
• In fact, the majority of
entrepreneurs do not have a
college degree.

12. Myth #8: Entrepreneurs are young
• Age has no limitations when it
comes to entrepreneurship.
• People may have reservations
about starting their own
business because of their age.
• However, entrepreneurship is
on the rise for younger
generations.

13. Myth #9: Entrepreneurs don’t quit until they succeed
• While the mentality of entrepreneurs
may not accept failure, the reality is
quite different. Entrepreneurs will fail.
• It’s not easy to start and run your own
business. You need to accept failure
as a potential reality. If your business
is going to fail, you need to do
whatever you can to minimize the
damage.
• So to debunk the myth – yes,
entrepreneurs have to quit without
succeeding.

14. Myth #10: Entrepreneurship is genetic
• You are not born an
entrepreneur. It’s not a trait
that you can inherit from your
parents. Even if your entire
family runs their own business,
it doesn’t mean that’s your
destiny as well. On the flip side,
this means you can be an
entrepreneur even if your
family doesn’t own a business.

16. What is a theory?
 A theory is a well-substantiated explanation
of an aspect of the natural world that can
incorporate laws, hypotheses and facts.

17. A. Risk Bearing Theory
 Frank Knight considered the risk taking
behavior as an important feature in the
concept of entrepreneurship. The theory
focuses on the main strength of
entrepreneur is the ability to anticipate the
future but on the same time it considers
risk and uncertainty as important factors
which are rewarding in terms of heavy
profits if successful.

18. B. Entrepreneurship Theory
 According to this theory of Alfred Marshall, a
successful entrepreneur must have the following
characteristics:
· Up so far knowledge and understanding of
the market.
· Must be a good leader.
· Be able to forecast the demand and supply
statistics and respond accordingly while
taking risk if required.

19. C. Sociological Theory
 The theory considers the driving force of
entrepreneurship is the social cultures and
societal needs. The entrepreneur envisages a
vision in conformity with the expectations of the
society. The idea entrepreneur conceives also
take care of religious beliefs, customs, traditions,
eco systems and sentiments of the society. Max
Weber stated religion as the key deciding force
for the type of the product or service
entrepreneurship business results, and stressed
on the strength of capitalism, which highlights
economic freedom and private enterprise.

20. D. Economic Theory
 Mark Casson suggested that entrepreneurship is the outcome
of favorable economic environment. Economic factors that are
responsible for entrepreneurship to occur are;
· Tax structure of the country,
· Policy for the industries,
· Availability of required raw materials,
· Availability of loans at attractive rates,
· Availability of reliable information through market
information system,
· Supporting infrastructure and technology,
· Opportunities and government support for marketing.

21. E. Innovation Theory
 Joseph Schumpeter’s rolled out the theory of
innovation to conceptualize entrepreneurship and
stated that an entrepreneur is the person who should
have three main characteristics: innovative,
foresighted, and creative. Entrepreneurship occurs
when the entrepreneur;
 Develops a new service or a product,
 Improvises new methods and techniques in production,
 Introduces new market for a product,
 Discovers new sources to gather raw material,
 Discovers a new path to establish organisation.

22. F. Theory of Entrepreneurship
 Israel Kirzner (1935-) hold’s that spontaneous
learning and application as two major characteristics
of entrepreneurship, and entrepreneurship is that
the transformation of spontaneous learning to
conscious knowledge, motivated by the prospects of
some gain. Kirzner considers the alertness to
acknowledge opportunity more characteristic than
innovation in defining entrepreneurship. The
entrepreneur either remedies ignorance or corrects
errors of the purchasers .

23. G. Theory of Entrepreneurship
 Harvey Leibenstein, called entrepreneur as a person who
fills in the gaps. To justify his theory he suggested three
traits of entrepreneurship as under;
 Ability to analyse trends in the market
 Ability to generate new demand and fulfill the same with
new products
 Promote profitable ventures
 Entrepreneurs have the skills to explore the new markets
and ability to fill in the gaps by ensuring balance
between demand and supply of new innovative
products.

24. H. Theory of Achievement Motivation
 McClellands Theory of accomplishment Motivation hold
that folks have three motives for accomplishing things: the
necessity for achievement, need for affiliation, and wish for
power. Need for achievement and wish for power drive
entrepreneurship
 . David McClelland (1917-1988) considers that
“Entrepreneurs are peoples that do things during a better
way and make decisions in times of uncertainty. The dream
to realize big things overpowers monetary or other
external incentives”. His experiment revealed that traditional
beliefs don’t inhibit an entrepreneur, which it’s possible to
internalize the motivation required for achievement
orientation through training.

25. I. Theory of Entrepreneurship
 The theory of entrepreneurship given by Peter
Drucker considers innovation, resources and an
entrepreneurial behavior as primary fundamentals
of entrepreneurship. He says entrepreneurship
involves
 Increase in value or satisfaction to the customer
from the resource
 Creation of new values
 Combination of existing materials or resources
during a new productive combination

27. References
 https://neilpatel.com/blog/myths-about-entrepreneurs/
 https://link.springer.com/chapter/10.1057/9780230583603_3
 https://www.amnh.org/exhibitions/darwin/evolution-today/what-is-a-
theory
 https://www.tourismbeast.com/theories-of-entrepreneurship/