THE PM CHRONICLE: 12 Surprising Facts About Entrepreneurs

Tuesday, May 13, 2014

12 Surprising Facts About Entrepreneurs

12 Surprising Facts About Entrepreneurs
May 12, 2014

I have a picture in my head of what the average entrepreneur is like. My guess would be that they're generally pretty young (think Facebook, Twitter, Google, etc.) living the ramen noodles lifestyle and working a crazy number of hours and often sleeping under their desk.

On some parts, I’m probably right — but on many, I’m flat-out wrong. This is demonstrated by one of my favorite reports on entrepreneurship (from a few years ago, but still relevant): It's from the the Kauffman foundation for entrepreneurship. The report is titled “T he Anatomy of an Entrepreneur”. It’s based on a survey of 549 company founders across a variety of industries (that was my first mistake, as it turns out entrepreneurs start companies other than Internet software companies — who knew?)

In any case, here are some of the points from the report that I found the most interesting.

1. The average and median age of company founders when they started their current companies was 40.

2. 95.1 percent of respondents themselves had earned bachelor’s degrees, and 47 percent had more advanced degrees.

3. Less than 1 percent came from extremely rich or extremely poor backgrounds

4. 15.2% of founders had a sibling that previously started a business.

5. 69.9 percent of respondents indicated they were married when they launched their first business. An additional 5.2 percent were divorced, separated, or widowed.

6. 59.7 percent of respondents indicated they had at least one child when they launched their first business, and 43.5 percent had two or more children.

7. The majority of the entrepreneurs in the sample were serial entrepreneurs. The average number of businesses launched by respondents was approximately 2.3.

8. 74.8 percent indicated desire to build wealth as an important motivation in becoming an entrepreneur.

9. Only 4.5 percent said the inability to find traditional employment was an important factor in starting a business.

10. Entrepreneurs are usually better educated than their parents.

11. Entrepreneurship doesn’t always run in the family. More than half (51.9 percent) of respondents were the first in their families to launch a business.

12. The majority of respondents (75.4 percent) had worked as employees at other companies for more than six years before launching their own companies.

Which of the above surprises you the most and alters your mental model of what entrepreneurs are like?

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Dharmesh Shah is founder/CTO of HubSpot. He's currently working on SiteAlerts.com a free tool for entrepreneurs to get instant insights and ideas from their competitors' websites.

Photo: ~ @alliance / fotolia

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