It's the age of the aspiring American entrepreneur. MBAs make up the largest percentage of master's degrees earned today, with 50 percent of MBA grads looking to start their own company.

But are these young people prepared for the risks that come with choosing the rollercoaster life of an entrepreneur?

"They certainly should not be discouraged," Richard Branson told Inc.'s President and Editor-in Chief Eric Schurenberg. "If they find that entrepreneurship isn't for them they're going to have a much easier time getting a more conventional job at a big company as a result of everything they've learned in their attempt to become an entrepreneur."

Branson's notion that ex-entrepreneurs will be able to make a smooth transition to a corporate job may allay some fears around launching a startup, but is it accurate? In the U.K., Branson's home turf, researchers found that salaried employees were 60 percent more likely than former entrepreneurs to get a call back after submitting a job application.  

Still, Branson is an advocate for taking a chance, but being fully aware of the risks of starting your own company.  

"You have to realize that 8 out of ten people who do give it a go do not succeed," the Virgin founder continued. "Go into it with your eyes open, work really hard to make your idea succeed, and if it doesn't, bow out gracefully. Either try again or put it down as a wonderful learning experience." 

To hear more from Branson about minimizing startup failure, watch the video below.