Book Review by Malcolm Abel

Title: “The Illusions of Entrepreneurship”

Author: Scott A. Shane

Publisher: Yale University Press

Length: 208 pages

Price: $26.00

Reading Time 3 - 5 hours

Reading rating: 6 (1 = very difficult; 10 = very easy)

Overall rating: 3 (1 = average; 4 = outstanding)

We are awash in the mystical beliefs about entrepreneurship. “The Illusions of Entrepreneurship” debunks those myths, presents the facts, and describes the reality. Anyone who has entertained the idea of going into business for themselves should read this book.

The typical entrepreneur has not completed college, begins a low tech business related to his work primarily to earn a living, and is a sole proprietor with “no plans to employ lots of people or make lots of money.” If this seems counter to what most of us are told about entrepreneurs, it is.

And, that’s only the beginning. Throughout the book, the author takes up one belief after another and demolishes them. Each chapter has a list of “Busted Myths and Key Realities.” For example: many entrepreneurs don’t think about the opportunities in business. They usually start a business first, and then identify the business idea.

As you read through this book, it only gets better. The typical entrepreneurial startup creates only one job, much like the job the entrepreneur had with a previous employer. New business formation has been in decline in the United States for at least 20 years. Business start ups are more likely to be in geographical areas which are poorer or dependent upon agriculture, rather than in those areas where high tech and high growth companies are located.

An education which focuses on business subjects or entrepreneurship is not requisite for the entrepreneur. Studying subjects which correspond to the type of business one wants to run is just as likely to be important. And, entrepreneurship is not a young person’s game; the majority of self-employed and business owners are 45 to 64.

There are several reasons for reading “The Illusions of Entrepreneurship.” One, you want to make an informed decision about starting a business. Two, you are already in the business of advising others in the formation of business enterprises. And, of course, three, you are already in business, and want to correct some of your mistakes or make adjustments in your perspective.

I read the book in a hard back copy, but, it is also available on Kindle, for less.

Malcolm Abel is a professor of business law in the College of Business at Western Carolina University. His scholarly interests include intellectual property, marketing, and hospitality law. For previously reviewed books, visit our Web site at www.wcu.edu/cob/reviews.