Myth No. 1: The same number of entrepreneurs buy an existing business as start from scratch.
Fact: some three-quarters of new businesses are started from scratch.
Myth No. 2: It takes years to start a business from scratch.Fact: Most businesses are established within six months, but those thinking about or avoiding starting a business tend to assume that it takes substantially longer, on average, deterring some from starting up.
Myth No. 3: It’s hard to get a bank loan to start a business.
Fact: While it may be slightly harder to get a start-up loan without a track record, only 10-20% of applications for a business loan are rejected, overall. There is, however, one group of entrepreneurs for whom this myth is actually reasonably accurate: individuals from lower socio-economic groups who lack their own capital.
Myth No. 4: A business plan is the most essential element in start-up.
Fact: Although many non-entrepreneurs believe this to be the case, business owners who have been through the process tend to downplay the importance of a business plan in favour of obtaining finance (although a business plan is usually required to raise finance). The learning process that accompanies the actual construction of a business plan is often considered to be more important than the plan itself. For some, it may prove to be a deterrent to start-up if they feel that cannot draft a business plan.
Myth No. 5: Small businesses don’t generate much turnover in their first year.
Fact: The average income, forecast by new entrepreneurs for their first year of trading, is only half of the figure actually achieved by small businesses.
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