275 © Springer International Publishing Switzerland 2017
M. Brännback, A.L. Carsrud (eds.), Revisiting the Entrepreneurial Mind,
International Studies in Entrepreneurship 35,
DOI 10.1007/978-3-319-45544-0_18
Chapter 18
Thoughts Have Consequences: Attributions
By and About Entrepreneurs
Kelly G. Shaver
Ninety percent of all startups fail….
18.1 Introduction
We have all heard claims like this. Frequently, they are uttered by people who might
be entrepreneurs, journalists, or venture investors, but who are completely unfamil-
iar with the relevant distinctions and data. But as we shall see in this chapter,
thoughts like this one have important consequences for understanding who entre-
preneurs might be or are, and why they actually do what they do.
The claim contains three critical elements: a stated percentage, a target referent
(“startup”), and an outcome (“fail”). By itself, the “ninety percent” is probably true
but uninformative in the same sense that the statement “100 % of all human beings
die” is true but uninformative. Of course human beings die; nobody lives forever. The
important questions for individual human beings are when they will die and what will
they accomplish in life before that eventual end overtakes them. Some companies
still in business today were founded more than 300 years ago—Beretta (1526),
Lloyd’s of London (1688), and Haig distilling (1627)—but it is a safe bet that well
over 90 % of the companies founded before 1700 no longer exist. Some new ventures
being founded today may last for more than 300 years, most will certainly not.
In some quarters such as Silicon Valley, people like to claim in print (http://www.
forbes.com/sites/theyec/2012/08/15/are-you-building-a-small-business-or-a-
startup/) or in a video such as the one by Steve Blank (https://www.youtube.com/
K.G. Shaver (*)
Department of Management and Marketing, School of Business, College of Charleston,
5 Liberty Street, Room 331, Charleston, SC 29401, USA
e-mail: shaverk@cofc.edu