Even presidential contender Hillary Clinton has bought into some of the myths about startups. What are the truths about U.S. startups in 2015?
When you think about startups, what type of person do you picture founding new businesses in tech with the intent of disrupting the status quo? If you are like many people, including Hillary Clinton, your mind creates an image of men in their 20s dominating the startup scene and pursuing big payouts. Like many stereotypes, however, this portrait is a myth according to a report by the accounting software firm Sage, published in 2015 State of the Startup. So what are the myths and the truths about startups?
Four Myths and Truths about Startups
Based on the responses of 620 startup founders and mentors, the following are some examples of the myths and realities about startups.
- Myth: The Millennial generation dominates the startup landscape.
Truth: Gen Xers, who are 30-50 years old, founded the majority of startups (55%).
- Myth: Women are virtually absent from the startup ecosystem.
Truth: During the past five years, 57 percent of startup founders were women.
- Myth: People who launch startups are motivated by the promise of big money.
Truth: The reasons founders gave for starting their business included the following:
- 1. Wanting to be their own boss
- 2. Having the freedom to follow their passions in business
- 3. Fulfilling a desire for independence
- Myth: Only workaholics start new businesses.
Truth: More than half of startups founders (58%) state they are committed to spending time with family, friends, and pursuing their personal, non-work related interests.
What effect do you think these myths have on people thinking about starting their own ventures?