There’s a major push in business schools to make entrepreneurship courses more realistic. In school, most outcomes are normally distributed. In a power law distribution, a few cases account for a large portion of the distribution’s total outcome. Because entrepreneurship classes are a stylized setting in which a normal distribution of outcomes is artificially imposed, many students are left thinking that their efforts are better than they actually are.
- There’s a major push in business schools to make entrepreneurship courses more realistic.
- Whether or not students would gain a better understanding of entrepreneurship from more realistic classes, structuring entrepreneurship courses to be more realistic is unworkable in practice.
- They just choose not to do it because the realism of starting companies is inconsistent with the academic evaluation system.
“The failure of academics to approach entrepreneurship with the realism of the market imposes a cost on society.”