Psychology September 6, 2025 10 min read By Peter Wins

How Social Media Created a Generation of Fake Entrepreneurs

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In This Article

Everyone’s a CEO of their own personal brand, running a business that doesn’t exist, selling courses about success they’ve never achieved, to people who want to quit their jobs and become entrepreneurs without ever learning how to actually build a business.

Social media has created the largest generation of fake entrepreneurs in human history, and they’re all selling dreams to each other.

Millions of people think they’re business owners when they’re actually just unemployed with a LinkedIn profile. It’s created a culture where selling courses about making money online counts as entrepreneurship, and everyone thinks they’re one viral post away from financial freedom.

The Entrepreneurship Illusion

Let’s start with what real entrepreneurship actually looks like versus what social media says it looks like.

Real entrepreneurs solve problems, create value, and build systems that generate revenue without their constant personal involvement. They have customers, employees, and businesses that could survive without them posting about it every day.

Social media entrepreneurs have personal brands, morning routines, and courses about entrepreneurship. Their entire business model is convincing other people they’re successful entrepreneurs.

Real entrepreneurs often work 80-hour weeks for years before seeing significant profits. They deal with inventory, customer service, legal issues, and the constant stress of keeping a business alive.

Social media entrepreneurs post motivational quotes, share productivity tips, and sell dreams of passive income and financial freedom.

The fundamental difference is this: real entrepreneurs create businesses that serve customers. Fake entrepreneurs create personal brands that serve their own egos and bank accounts.

But social media makes the fake version look more appealing because it’s easier to photograph a laptop on a beach than it is to photograph the unglamorous reality of building an actual business.

The Guru Economy

Social media has created an entire economy of people teaching entrepreneurship who have never successfully run a traditional business.

These “gurus” make money by selling courses about making money online, hosting webinars about passive income, and coaching people on business strategies they’ve never actually implemented outside of their personal brand.

Their only real business skill is marketing themselves as business experts. They’re essentially running pyramid schemes where the product being sold is the dream of becoming like them.

The formula is always the same: rent a nice car, pose with expensive things you don’t own, post screenshots of income that may or may not be real, and then sell courses about how others can achieve the same “success.”

But here’s the catch: their income comes from selling the dream of entrepreneurship, not from actually building businesses that create value for customers.

They prey on people who are frustrated with traditional employment and want to believe there’s a shortcut to financial freedom that doesn’t require years of learning actual business skills.

The really insidious part is that some of these gurus do make significant money—but they make it by exploiting people’s entrepreneurial dreams, not by teaching legitimate business principles.

The Personal Brand Obsession

Social media has convinced people that building a personal brand is the same thing as building a business, and it’s creating a generation of unemployed influencers who think they’re entrepreneurs.

Everyone’s trying to become the next Gary Vaynerchuk or Grant Cardone without understanding that these people built actual businesses before they became personal brands.

Gary V built a wine business that generated millions in revenue. Grant Cardone built a real estate empire. Their personal brands came after they proved they could build real businesses.

But social media entrepreneurs skip the part where you build an actual business and jump straight to building a personal brand around the idea that you’re going to build a business someday.

They spend their days creating content about entrepreneurship instead of actually doing entrepreneurship. They’re performing the role of business owner without having a business to own.

This creates a feedback loop where they get validation and followers for talking about business, which makes them feel like they’re making progress, even though they’re not actually building anything of value.

The personal brand becomes the business, but it’s a business with no real product or service beyond the personal brand itself.

The Course Economy Scam

The easiest way to spot a fake entrepreneur is that their primary business model is selling courses about how to become an entrepreneur.

They’ve never built a successful restaurant, but they’ll sell you a course on starting a food business. They’ve never run a successful e-commerce store, but they’ll teach you dropshipping. They’ve never managed employees, but they’ll coach you on leadership.

Their expertise is in marketing courses, not in the subjects they’re teaching. They’re essentially selling people the right to use the same business model: selling courses to other people about selling courses.

This creates a pyramid-like structure where everyone is trying to get rich by teaching other people how to get rich, but nobody is actually creating any real value for end customers.

The course economy has convinced people that knowledge is a product, but most of these courses are just repackaged free information from YouTube and Google, sold at premium prices to people who want shortcuts.

Real business education comes from actually running businesses, making mistakes, and learning from experience. It can’t be compressed into a $997 online course that promises to teach you everything you need to know in 6 weeks.

The Passive Income Lie

One of the biggest lies in the fake entrepreneur space is the concept of passive income and the promise that you can get rich without working.

Social media entrepreneurs constantly post about their “passive income streams”—affiliate marketing, course sales, investment returns—making it look like money just appears in their bank accounts while they sleep.

But what they don’t show you is the massive amount of active work required to build these supposedly passive systems. Creating a course that generates passive income requires months of active work. Building an affiliate marketing business requires constant content creation and audience building.

Even traditional passive income like rental properties requires active management, maintenance, and dealing with tenants and market fluctuations.

The passive income promise attracts people who want the results of entrepreneurship without the work of entrepreneurship. It’s a fantasy that feeds on people’s desire to escape the daily grind without understanding that building anything worthwhile requires sustained effort.

Real entrepreneurs understand that income is usually directly correlated with value creation, and value creation requires work. The “set it and forget it” mentality is a recipe for failure in any real business.

The Employment Shame

Social media entrepreneurs have created a toxic culture that shames traditional employment and makes people feel like failures for having regular jobs.

They constantly post about “escaping the 9-to-5” and “being your own boss” as if working for someone else is inherently inferior to working for yourself.

But most successful entrepreneurs worked traditional jobs where they learned valuable skills, built networks, and gained experience before starting their own businesses.

Traditional employment provides training, mentorship, steady income, and the opportunity to learn how businesses actually operate from the inside. These are incredibly valuable experiences for future entrepreneurs.

The anti-employment messaging preys on people’s legitimate frustrations with their jobs and convinces them that the solution is to quit and become an entrepreneur, rather than learning skills and building experience that would actually help them succeed in business.

This has led to thousands of people quitting stable jobs to pursue entrepreneurial dreams they’re not prepared for, often ending up worse off financially and professionally than when they started.

The Skill Deficit

The fake entrepreneur culture has created a generation of people who think they’re business owners but lack the fundamental skills necessary to run actual businesses.

They know how to create Instagram content and run Facebook ads, but they don’t understand accounting, operations, customer service, inventory management, or any of the unglamorous skills that actually keep businesses running.

They can talk about mindset and motivation, but they can’t read financial statements, manage cash flow, or navigate legal and regulatory requirements.

Real entrepreneurship requires technical skills that take years to develop. You need to understand your industry, your customers, your competition, and the practical realities of delivering value consistently and profitably.

But social media entrepreneurship focuses on the glamorous aspects—the lifestyle, the freedom, the potential for unlimited income—while ignoring the boring but essential skills that actually determine business success.

This creates a huge gap between people’s entrepreneurial aspirations and their actual capabilities, leading to a high failure rate among social media-inspired entrepreneurs.

The Real Path to Entrepreneurship

If you actually want to become an entrepreneur, here’s what the path really looks like:

Learn valuable skills first: Get good at something that businesses need. Sales, marketing, programming, design, finance—develop expertise that creates value for customers.

Work in your target industry: Understand how the industry operates, what customers actually want, and what problems need solving before you try to start a business in that space.

Start small and test everything: Real entrepreneurs start with minimum viable products, test with real customers, and iterate based on feedback. They don’t launch with flashy marketing campaigns and big promises.

Focus on customers, not content: Spend your time understanding and serving customers, not building a personal brand. Customers pay for value, not for your morning routine posts.

Build systems, not just income: Create businesses that can operate without your constant personal involvement. This requires building teams, processes, and systems—not just personal branding.

Measure real metrics: Revenue, profit margins, customer acquisition costs, and retention rates matter more than followers, likes, or social media engagement.

Real entrepreneurship is less glamorous but more rewarding than social media entrepreneurship because you’re actually building something valuable instead of just performing success.

The Real Truth

Social media has created a generation of fake entrepreneurs who are performing business ownership instead of actually building businesses.

The real tragedy isn’t just that these people are wasting their own time and money—it’s that they’re convincing others to do the same thing, creating a cycle of entrepreneurial failure that discourages people from pursuing legitimate business opportunities.

If you want to be an entrepreneur, focus on learning real skills, understanding real customers, and solving real problems. Don’t get distracted by the performance art of fake entrepreneurship on social media.

The world needs more real entrepreneurs who create value, solve problems, and build sustainable businesses. It doesn’t need more personal brands selling courses about how to build personal brands.

What About You?

What real entrepreneurship means to you? What valuable problems are you working to solve, rather than just building a personal brand around the idea of solving problems?

Share this with someone who’s been caught up in the fake entrepreneur hype and needs to understand what real business building looks like.

Remember: real businesses serve customers, not followers. Real entrepreneurship is harder than social media makes it look, but it’s also more rewarding because you’re actually building something that matters.

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