Small businesses fail due to lack of entrepreneurship from "summary" of The E-Myth Revisited by Michael E. Gerber
The fatal assumption that an individual who understands the technical work of a business can successfully run that business has been the root cause of most small business failures. This assumption arises from the belief that the technician can be an entrepreneur simply by virtue of understanding the technical work of the business. This misconception leads to the neglect of the three essential roles that must be fulfilled in any successful small business: the entrepreneur, the manager, and the technician.
Entrepreneurs are the visionaries who dream up new ideas and ways of doing things. They are the individuals who take risks and are constantly seeking new opportunities for growth and innovation. Managers, on the other hand, are the individuals who plan, organize, and control the day-to-day operations of the business. They are responsible for implementing the systems and processes that keep the business running smoothly. Technicians, as the name suggests, are the individuals who actually do the technical work of the business. They are the craftsmen who produce the product or deliver the service to the customers.
The problem arises when the technician, who typically starts a small business because they are skilled at the technical work of the business, fails to also fulfill the roles of the entrepreneur and manager. Without the entrepreneurial vision to guide the business and the managerial skills to implement systems and processes, the business is doomed to fail. Small businesses fail not because the technician lacks the technical skills, but because they lack the entrepreneurial spirit and managerial mindset necessary for success.
To avoid this common pitfall, small business owners must learn to balance the three essential roles of the entrepreneur, manager, and technician. They must develop the entrepreneurial vision to guide the business, the managerial skills to implement systems and processes, and the technical expertise to deliver the product or service to the customers. By embracing all three roles and understanding the importance of each in the success of a small business, entrepreneurs can avoid the fate of so many others who have failed due to a lack of entrepreneurship.
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