This article is the second in a series dedicated to the entrepreneur who lives in each of us. It is not a crash course in how to get rich and famous quickly. If anything, I hope you will find inspiration and some pieces of the puzzle that compose your own theory of life. Debunking entrepreneurial myths comes with sometimes counterintuitive ideas. I invite you to take them with a grain of salt, read the arguments and the stories and decide for yourself.

The media is blurring our vision with stories of billionaire entrepreneurs, unicorns, and people who have abilities that we feel are way out of our reach. But do not let the lights of the media blind you in the same way that city lights prevent you from seeing the myriads of stars in the sky. There is more to entrepreneurship than Steve Jobs, Elon Musk, Mark Zuckerberg, or unicorns.

You don’t need to be on the front cover of some business magazine to enjoy the benefits of running the business of your career and life on your own terms.

We all know the story: the star entrepreneur has a bright idea that nobody had before, writes a business plan and raises millions of investment money from venture capital funds, builds a business that grows hockey-stick, sells or goes through an IPO, and retires in glory. That is not really what statistics show. The bankruptcy rate of VC-funded startups is almost four times higher than the average. Only 2% of startups reach an IPO. And so on …

The success stories featured by the media often lead us into the trap of what behavioral scientists call: the availability bias. When the information at hand, and being at hand is highly aggravated by social media and the online advertising industry, mainly refers to huge success stories, unconsciously we tend to think that this is the norm and become blind to the rest of the information, unless we deliberately search for it.

 

The wonderful world of the small entrepreneur

In the US and Europe only, close to three million companies are created each year. And the good news is that slightly more than half of these companies are still in operation after five years, and four out of ten after eight years.

Please do not misread the numbers! It does not mean that six out of ten have failed. They may have been closed for various reasons: owners retiring, mergers and acquisitions, or simply closed by the owners who decided to pursue a different path.

92% of startups close without debt, and that, after paying their bills and salaries, including owner’s salary

Statistics show that 92% of these companies close without debt after paying their loans, suppliers, salaries. And that includes the founder’s salary. Some 20% close with a profit. At the other end, about 30% of the companies funded by venture capital, almost four times more, go bankrupt.

I receive each week, from dedicated search services in the US, announcements of established small businesses that made solid five-figure profits or more in the past three years and are for sale. To me, this is another proof that the world of “small” entrepreneurs is big.

One does not need to be on the front cover of some business magazine to enjoy the benefits of running the business of your career and life on your own terms. It can be a full-time or a side activity complementary to your day job, or it can be continuing and boosting your actual career or changing it.

The key element is that you are doing it on your own terms.

In France, where I live, one in five entrepreneurs is pursuing an activity complementary to their existing, ongoing jobs. Concerning the nature of these entrepreneurial initiatives, 70% are in a different field than their actual job specialization. Also, men founders account for 64% of new business creation. Interestingly, when looking at the educational achievements, 42% of women and 30% of men entrepreneurs hold a university degree or higher.

On the perils of dreaming BIG

One common idea, spread by various sources of entrepreneurial education, is the need to dreaming BIG. I do not think that dreaming big is a prerequisite of successful entrepreneurship. It may help or hinder. Don’t get me wrong: dreaming, visualizing an outcome is essential. If you like to dream big, that’s great, if not, do not push yourself to dream too big. The problem often arises from the confusion between dreaming big and setting too high expectations. As a matter of fact, setting too high expectations, for example, of market share, or time-to-market is one of the most common failure causes among startups.

I, therefore, believe that dreaming too big can be even detrimental. In today’s fast-paced world, dreaming too big is sometimes associated with having to make big steps. It can lead to losing motivation, especially in the beginning, when the first steps of an entrepreneur are small and shaky.

Aiming at a too high achievement or constantly comparing oneself with the success stories featured in popular media, could also lead to the development of inferiority complexes or an impostor syndrome in the aspiring entrepreneur. He or she starts to respond with self-doubt, over-preparation, perfectionism, or procrastination.

A little story: on Saturdays, at the butcher in the nearby village, there is always a queue of customers extending out in the street. I don’t think that he ever dreamed of becoming a nationwide meat supplier. But I know for sure that he is proud of the quality of the products he offers and the rewarding feedback of his clients. How many freelance consultants, for example, would not like to have a long line of clients waiting?

But, if you’re one of those who like to dream big, go for it, and most important act on it. Why not today?

However, how big is big? Success (and big) are relative words that have different interpretations for each of us. A venture capitalist will seek a return of at least 10x the investment to call this a success. A small entrepreneur will be happy to pay the bills, make a good return (for example, more than the average return on the general stock market) for his shareholders (if he has), and stash away some profits.

Nevertheless, dreaming and having a purpose aligned with your personal values, setting goals along the path certainly is a prerequisite for success! Just do not confuse your dream with your immediate goal! Put some lighthouses on the path towards your dream destination. And if you’re one of those who like to dream big, go for it, and most important act on it. Why not today?

You have all what it takes to start. Do not let yourself intimidated by the attention-seeking media. Wake up! Start dreaming! And acting!

Note: You can always reach me via the form at the bottom or via LinkedIn. Should you have, or know someone who does, stories of small entrepreneurs, please share them with me or ask those willing to inspire other entrepreneurs to share their stories.

Data sources: Europe – Eurostat, US – US Bureau of Labor Statistics, France – Institut national de la statistique et des études économiques

Photo by Miriam Espacio from Pexels