Fatal Assumption

Category: Entrepreneurship, Philosophy

Last Updated: 28 Jan 2021

Pages: 2 Views: 489

The term "E-Myth" defined by Michael E. Gerber states that small businesses are started by entrepreneurs risking capital to make a profit. Gerber agreeably states that this is simply not true. We have learned from our textbook Entrepreneurship, E-Myth, and everyday life that small businesses are started for various reasons and the risk of losing money is not one. Most people do not start companies just to risk money and try to make a profit just for the thrill of it. Ideas for small businesses are usually triggered by corporate downsizing, global advancement, "...the paycheck you received on a Friday afternoon, or a sideways glance from the boss that just didn't sit right"(Gerber, 11). Those events usually trigger an "Entrepreneurial Seizure." The employee now wants to be the employer.

However, when hit with this burning desire to start a business one has a "Fatal Assumption." One assumes "if you understand the technical work, you understand a business that does this technical work"(Gerber, 13). This is a huge misconception. Just because one can do the technical work day-in and day-out, does not mean he/she can do all of the other tasks it takes to run a business. Instead of being an expert in one area, one must be burdened with the title of being a jack-of-all-trades. Before reading Gerber's theory of the "Fatal Assumption" I believed in going out to do what you love and make a profit from it. After reading his theory my belief has completely changed. The business part of my dream job had not entered my mine. Starting a successful business has more to do with it besides just loving what you do.

That is why I completely agree with Gerber's theory that everyone who goes into business is three people-in-one. In order to survive as a successful business one must be the entrepreneur, the manager, and the technician. Being all three allows one to know what is exactly going on in their business at all times. The entrepreneur is needed to start the business running, the manager is needed to make sure that all of the important issues of the business are being taken care of properly and the technician knows the product. This is true in such businesses like my aunt's cleaning service called Maid in America. It started out as a small business, having it being possible for her to oversee everything. However, time brought upon a growth of business and more contracts, making the business too large for her to oversee. This made it possible for the her to no longer over see everything in the company, which meant that the jobs done were no longer produced to its original standards, which in-turn left customers unsatisfied and which finally made the business close. Her desire to be an entreprneur, in addition to having experience in the janitorial field moved her too start the business, which completely supports my theory of which that an entreprenuer is not born , but made.

Order custom essay Fatal Assumption with free plagiarism report