Shattering the 7 Myths of Student Entrepreneurship

Why Starting a Business Now May Be the Best Way to Achieve Your Dreams

Young Money Magazine - October/November 2003
by Michael Simmons (Young Entrepreneur Journey) author of The Student Success Manifesto

According to a 1997 Gallup study, 7 out of 10 high school students say they want to start their own business. And why not? Starting and running your own business while still in school is a great opportunity to grow, learn, network, and accumulate wealth. However, only a tiny proportion of students actually start a business.

Because of a lack of direct experience with entrepreneurship, students develop unfounded beliefs about it that can stop them from starting a company. In this article, I will address these “The 7 Myths of Student Entrepreneurship”:

1. I don’t have enough money Many of America’s largest corporations started on a shoestring budget out of somebody’s garage. A successful Web development company a friend and I started in high school cost only $80 to set up. To compensate for a low budget, you have to be creative, resourceful and make realistic plans. To get in the right frame of mind, you may want to read Seth Godin's e-booklet, The Bootstrapper's Bible, available on Amazon.com.
   
   
2. I don’t have enough time Many of America’s largest corporations were started in people’s spare time. Perfect examples are Hewlett-Packard, Microsoft, and Dell, all of which were started on part-time schedules. All of us have 24 hours in a day. If the business is important to you, you will prioritize it over less important activities and create a business model that fits your schedule. For example, one student at California State University started a business teaching financial skills to high school students during summers. With the money he earned from starting the business, he is putting himself and his brother through school in addition to paying off all of his other expenses.
   
   
3. I’m not smart enoughSays who? SATs and grades have very little correlation to people’s potential to be successful entrepreneurs. In fact, 50% of millionaire entrepreneurs never graduated college and 75% of U.S. presidents were in the lower-half club in high school, according to Mathew Lesko in his book, Free Money to Change Your Life. Some examples of businesses started by individuals while still in school are Microsoft, Dell, Napster, Netscape, Fedex, Apple, Tripod, and TheGlobe.com.
   
   
4. I’m not creative so I can’t come up with good ideasThere are many books in the library or book store with low-cost business ideas. One specific book of ideas for student entrepreneurs is Generation Inc.: The 100 Best Businesses for Young Entrepreneurs. Or you can find young entrepreneurs at your school or in the media and ask them how they came up with their business idea. Networking with other youth entrepreneurs will also adjust your own mindset to be open to ideas for a business. Also, there area lot of business ideas already out there that work, that you could replicate or modify slightly.
   
   
5. I can’t because the economy is bad Many of the most successful corporations were started during recessions. During recessions talent is easier and cheaper to find, rent is lower, and there is less competition. All of this adds up to recessions being one of the most opportune times to start a business.
   
   
6. I don’t have enough experience Microsoft, Dell, Kinkos, and Yahoo are just a few of the many successful companies started by people with no business experience. Your experience can certainly affect the success of your company, but you have to start somewhere. If your first business fails financially, then you still will have gained the unique experience, learning, network and growth from running the business that will give you an edge over your peers. I’ve heard many people say they’d rather employ somebody with a failed business than somebody with no experience at all. Companies would rather you fail and learn on your dime than on their dime.
   
   
7. I can’t because I’m afraid of failing According to most statistics, the majority of businesses fail financially after the first few years. In fact, the most successful people in the long-term often have the most failures in their life. So, it is OK to fail. The key is whether you fall forward. You can fall forward in front of your other classmates with the network, experience, and personal growth you got from starting your business. According to Napoleon Hill, a bestselling author who researched the habits of extremely successful people such as Andrew Carnegie, Thomas Edison, and Henry Ford, Every failure has within it the seeds for equal or greater success. It is your decision whether you plant these seeds.

Taking Action

Now that you are more aware of unfounded beliefs that you or others may have, you are more prepared to make the decision of whether or not student entrepreneurship is right for you. Below are resources to take advantage of as you begin your journey:

• Youth Venture (http://www.youthventure.org)
  
  
• Students in Free Enterprise (http://www.sife.org)
  
  
• Collegiate Entrepreneurs’ Organization (http://www.c-e-o.org)
  
  
• Service Corps of Retired Executives (http://www.score.org)
  
  
• Professors, mentor networks, or entrepreneurship centers at your school
  

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Michael Simmons is the author of the best-selling book, The Student Success Manifesto: How to Create a Life of Passion, Purpose and Prosperity and an award-winning entrepreneur. You can view his online journal at Young Entrepreneur Journey and/or download his free success ebook.

Why Every Student Should Start a Business

9 reasons to abandon your fear of start-up and launch a business today

Entrepreneur.com - July 2002 by Michael Simmons (Young Entrepreneur Journey) author of The Student Success Manifesto


With the economic downturn, students in all the major business schools have been dropping out of their entrepreneurship classes and transferring back to classes where they think they have a secure future. Students and professionals who were once planning to start businesses now have decided to go back to their cushy jobs. Everything is going back to normal. Or at least that is how it looks. Below are nine reasons why any student should start a business:

1. You gain experience. Owning and running your own business is an incredible way to gain experience and credentials regardless of whether you decide to stay in business once you graduate. Jaime Gonzalez of Oklahoma State University received the highest job offer in his entire graduating class. Now, there are two kickers: First, he was the founder of an IT consulting company, and second, he had a 2.4 GPA. Hmmm...I wonder if starting a business helps in getting a better job when you graduate?
2. You have nothing to lose. I think it's safe to say that most students dip into their parents' checkbook when it comes time to pay the bills. In general, students aren't paying child support, rent, utilities and many other expenses. The worst thing that could happen if your business fails is that you get a job, have an incredible credential on your resume, and have experience that will increase your chances of success in the future. The best thing that can happen is that you'll become the next Microsoft. I don't know about you, but I think that is better than choosing between no job and jobs that you're in just for the money.
3. Two-thirds of millionaires are entrepreneurs, according to Thomas Stanley and William Dank, authors of The Millionaire Mind. If it's the money you want, then consider entrepreneurship. You receive not only a salary, but also a lot of money if you're lucky enough to sell your company or take it public. Michael Furdyk, a successful young entrepreneur, was able to sell his business, MyDesktop.com, for $1 million when he was 16 years old!
4. You develop networking skills. You've likely heard that your network increases your net worth. Consider the fact that by running a business and constantly being in a business community, you will develop excellent contacts. If you choose to get a job after you graduate, you will have a great pool of people who will be more than happy to hire you or send your resume to somebody who wants to.
5. You increase your value. Put simply, starting a business in college increases the value of "the brand called you" and gives you more options. For example, an entrepreneur with a large brand value can publish a book, star in a documentary movie (i.e., Startup.com), or go straight to the top of another company. I recently met one of the founders of Diversity Planet, a job site for minorities. He spent a year working very hard on the company and has since left to take a reporting job with Dateline NBC at the ripe age of 20! People don't often don't get an opportunity like that until they are much older.
6. Operating a profitable business in the long term is less risky than being an employee in the long term. For example, just look at the recent economic downturn. Tens of thousands of people have been laid off. I can guarantee the owners of profitable businesses are still with the business. They will be the last people to go down with a ship. Business owners can have multiple streams of incomes from different customers. If you're an employee, you only have one stream of income and therefore are bearing more risk.
7. You will learn more about yourself and what they don't teach or prepare you for in school. Furthermore, entrepreneurship is the combination of all the disciplines of business. It includes knowledge of marketing, accounting, management and operations. Already having knowledge of these topics before you take classes on them allows you to see more clearly how everything applies. Also, you will be able to learn early-on what subjects you like so you can make better decisions on what to major in and what industries to target.
8. It is yours. You make the rules, create your own hours, work from wherever you want and choose who you want to work with. You can also pick what interests you the most in the world and then start a business that is related to that topic in some way. If you like art, you can start a design business. If you like marketing, you can create or choose a product and then market it. If you like writing, you can write a book and do your own public relations and marketing. If you like the Internet, you can start a Web development business.
9. You'll grow. I personally have grown a lot from owning a business. I used to be terrified to speak in front of others. Now I look forward to it. Before owning a business, I had probably read a total of five books outside of school, and I only read them because my mom made me. Since starting my business, I've probably read more than 100 books. The business has also allowed me to learn more about myself. I know that I will be an entrepreneur forever in some way, shape or form!

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Michael Simmons is the author of the best-selling book, The Student Success Manifesto: How to Create a Life of Passion, Purpose and Prosperity and an award-winning entrepreneur. You can view his online journal at Young Entrepreneur Journey and/or download his free success ebook.

Copyright 2002 Entrepreneur.com. All Rights Reserved.