Most believe new businesses provide substantial economic benefits. Scott Shane explains why this isn't normally the case
Myth: The typical entrepreneur creates jobs, generates innovation, provides wealth, and rejuvenates communities.
Reality: Only a minority of entrepreneurs start businesses that provide these benefits.
While it may be true that some entrepreneurs provide substantial economic benefits, our view of what the typical entrepreneur can—and wants to—accomplish is greatly overestimated. In large part, this is because the typical entrepreneur—out of about 12 million people trying to start businesses every year—has low aspirations.
A Typical Entrepreneur's Aspirations
