Why Entrepreneurs Fail: How to Avoid the Traps

Would‐be entrepreneurs who start or acquire businesses, driven by the popular belief that executive competence can conquer all, are likely to be disappointed. Executive competence, while important, is often subordinate to the concept and capital utilization characteristics of the business in determining organizational outcomes. Proposes five guidelines for starting or acquiring a business which, if observed, will increase the chances of entrepreneurial success and corresponding wealth accumulation.