Nick Gilson is an entrepreneur. Growing up in Rhode Island, he often sailed with his father and even once helped him build a catamaran, which are faster than traditional yachts because of their twin-hulled design. Nick wondered if a similar design could be applied to snowboards. So, as a teen, Nick decided he was going to design a snowboard based on the double-hulled catamaran design. In 2013, he co-founded Gilson Boards. The snowboards feature two runners along the bottom, which gives a rider more versatility and control in different snow conditions. By 2016, the company had sold more than 1,000 boards with a revenue approaching $1 million. Now, with 11 full-time employees, company sales have grown 200 percent every year. And it’s branched out with its unique design into a line of skis.2 Nick Gilson is engaged in entrepreneurship, the process of capitalizing on opportunities by starting new businesses for the purposes of changing, revolutionizing, transforming, or introducing new products or services. An entrepreneur sees an opportunity or an unmet need and won’t stop searching and searching until finding a way to meet that need.

Many people think that entrepreneurial ventures and small businesses are the same, but they’re not. Entrepreneurs create entrepreneurial ventures (EVs)—organizations that pursue opportunities, are characterized by innovative practices, and have growth and profitability as their main goals. On the other hand, a small business is an independent business having fewer than 500 employees that doesn’t necessarily engage in any new or innovative practices and that has relatively little impact on its industry. A small business isn’t necessarily entrepreneurial because it’s small. To be entrepreneurial means that the business is innovative and seeks out new opportunities. Even though entrepreneurial ventures may start small, they pursue growth. Some new small firms may grow, but many remain small businesses, by choice or by default.

As we continue our exploration of what entrepreneurship is, it may help to clarify the concept by explaining what it isn’t. Although entrepreneurial activities have been studied for well over three centuries, there are some common misconceptions about it.3

1. Successful entrepreneurship needs only a great idea. Having a great idea is only part of the equation for successful entrepreneurship. Understanding the demands of the different phases of the entrepreneurial process, taking an organized approach to developing the EV, and coping with the challenges of managing the EV are also key ingredients to successful entrepreneurship.

2. Entrepreneurship is easy. You may think that because you’re pursuing your passion and have an intense desire to succeed, it’s going to be easy. Be forewarned, however! Entrepreneurship is not easy! It takes commitment, determination, and hard work. And even if you have those qualities, it still isn’t effortless. Entrepreneurs often encounter difficulties and setbacks, but the successful entrepreneurs are those who push on in spite of the difficulties.

3. Entrepreneurship is a risky gamble. Typically, because entrepreneurship involves pursuing new and untested approaches and ideas, it must be a gamble, right? Not really. Although entrepreneurs aren’t afraid to take risks, entrepreneurship involves calculated risks, not unnecessary ones. In fact, there are times when successful entrepreneurship means avoiding or minimizing risks.

4. Entrepreneurship is found only in small-sized businesses. Many people have the mistaken idea that entrepreneurship is associated only with small-sized organizations. The truth is that entrepreneurship can be found in any size organization. On the other hand, just because an organization is small doesn’t automatically make it entrepreneurial.

5. Entrepreneurial ventures and small businesses are the same thing. This is a widespread misconception that we addressed earlier.