These findings from the SBA, Kauffman Foundation and a research paper by Gompers and his colleagues imply two things:
1- Startups Are For Entrepreneurs And Not Wantrepreneurs
In addition to the 50% failure rate of all new businesses within the first 5 years, a report by the Startup Genome shows that 92% of startups eventually fail. Who’s going to want to take repetitive shots at such a high-risk career path? certainly not the wantrepreneur. Entrepreneurs are believers; they don’t get defeated by failure whereas wantrepreneurs are gold diggers; they play for the money and rarely willing to sacrifice. Startups are for entrepreneurs.
2- The Persistent Entrepreneur Is Eventually Rewarded
The positive correlation between education and success rates is attributed in small part to knowledge. In other words, the most knowledgeable college graduates don’t necessarily always make smarter startup decisions. Instead, they’re more likely to learn from their mistakes, enhance their skills, read and ask the right questions, plan carefully and surround themselves with the right people. They are rewarded because of their smart persistence.