The Illusions of Entrepreneurship: The Costly Myths That Entrepreneurs, Investors, and Policy Makers asin: 0300113315 binding: Hardcover list price: $26.00 amazon price: $17.16

When we have needed to understand the empirical evidence and realities of a certain aspect of franchising, Blue MauMau has sought out Scott Shane.

In his latest book, The Illusions of Entrepreneurship, Shane declares, "The information in this book will help you to get the facts right and disabuse you of many of the myths about entrepreneurship." And after reading his book, I am convinced he is right.

As a publisher, I hear stories like franchise investors walking into a sandwich shop and deciding on the spot, "I'm going to own one of these." They are in pursuit of a dream. Consultants and journals publish such myths to help build heroic entrepreneur stories and dreams. It sells magazines while pleasing franchisor advertisors.

Shane, Professor of Entrepreneurial Studies at Case Western Reserve University, shares with us that most entrepreneurs do not engage in due diligence and writing business plans. And unfortunately, their bad information and over-optimism will lead them to make poor investment decisions. Shane makes a simple argument: Entrepreneurs should focus on industry segments that have higher profit and higher potential. He shares how to identify them.

The Illusions of Entrepreneurship is written in an easy to read and direct style. Besides charts and supporting evidence to explain why a particular myth isn't valid, all busted myths are summarized at the end of each chapter.

If you are interested in making informed investment decisions based on better evidence and less conjecture, then Shane's The Illusions of Entrepreneurship is an indispensable handbook to help point you in the right direction to make more profitable decisions.