Introduction Initial venture in the company is at times very challenging. Business environment is always very dynamic and uncertain. First-timer ventures in particular face greater threats. A successful start-up company is largely attributed to acquiring skills to manage the business enterprise. Consequently first time entrepreneurs have a low percentage of success as compared to successful entrepreneurs with a chronological track of success. To add on even those who had tried and failed never find it any better. This view is articulated in Schumpeter (1934, p, 137) when he claims “The entrepreneur is never the risk bearer, but rather an innovator, that is one who discovers new production process finds new markets, creates new types of organization or introduces new products.” It therefore implies that for one to implement successfully in business functions then skills are instrumental. Business entrepreneurs based on luck alone are bound to fail. This is because skills contribute a lot to the success of a company. Main text The skill hypothesis in business success is of the contrary to Khilstrom and Laffont’s (1979) belief. These two authorities attach success in initial investment in business operation to luck. They state that, “Luck is the only determinant of entrepreneurial success.” This can never be true. Luck alone cannot determine the viability of the business development. According to them, entrepreneur models are simple risk-averse individuals who are willing to guarantee workers’ wages and bear residual risk. The concept of luck in business success cannot be outrightly being outlawed. It does constitute as part of success in initial business success. In fact there is business entrepreneur who has made it in life due luck. These are the propellers of the luck hypothesis and disregard the skills hypothesis. In the world of today, entrepreneur success cannot be largely attributed to luck. Even though it has a part in business success. Consequently this paper empirically disregards the view valued by Kihlstrom and Laffont of luck hypothesis favoring initial business investment success. This dissertation rather argues in preference of Schumpeter model, that emphasizes success in business initial set up on skills. The claim that skills are an important component of entrepreneurship is very paramount. This view is further confirmed by an empirical model that indicates that proponents who succeed in prior venture – started a company that is perceived profitable by public – have a 30% chance of succeeding in their next venture. In contrary, first time investors hold a slim chance of 18 per cent. This shows and attributes success in business venture on skills. The reason why those who have past success in business setting a higher chance of success is because of their past experience and acquired skills. Even though it might be better to be lucky than smart. The evidence outlined in this presentation indicates that being smart has value too. Most companies fail because they are capitalized, investment demands huge capital. At times individuals may not be in a position to finance the initial financial demand of a company. Borrowing from financial institutions is therefore an option. These create a burde