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"It's time we told the truth about entrepreneurship. A lot depends on it. Over $530 billion, yes billion, is spent on launching startups every year. Most of that money comes directly out of the entrepreneurs' pockets, or from the equity in their houses, or from debt. Much of it also comes from gifts, loans, or investments from friends and family. Only 10 to 20% of this money, depending upon the year and the state of frenzy in venture investing, comes from complete strangers and professional investors. Most of this money is wasted by ill-prepared entrepreneurs who have virtually no chance of success. And it will continue to be wasted, along with the time and effort that many hard working people put into these doomed enterprises, unless we can introduce them early on to the truth about what it takes to create and sustain a new business."
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"It is one of our saddest economic statistics: More than half small businesses fail within a few years of startup. Unlike the cheery pictures presented in advertising or the success stories showcased on Shark Tank, a significant percentage of fledgling enterprises sputter and eventually die. Only 1 in 43 has any employees after 10 years. These startups don't create much economic value. The vast majority don't even earn as much for their founders as those people could have earned working for someone else. Dreams die, jobs are lost, and communities lose their vitality.
It does not have to be this way. In fact, if we want a robust economy with job growth, we must do something about it. I think that the solution is deceptively simple: entrepreneurs should stop thinking so much about the idea behind the business and focus instead on how to lead it."
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