Entrepreneur – definition and examples
An Entrepreneur is a person who creates and manages any business by identifying a need and benefiting from the opportunity. This usually comes with considerable risk, personal sacrifice, and initiative.
We usually see the entrepreneur as an individual who innovates and produces new ideas, goods, or services.
They are also at risk of losing their capital. They run that risk because like any other business in the world, there is a chance of failure.
An entrepreneur can be the owner, a partner, or in some cases the majority shareholder in the venture. They usually assume all roles that involve managing the business activities.
According to the Cambridge dictionary, an entrepreneur is:
“Someone who starts their own business, especially when this involves seeing a new opportunity.”
Entrepreneurship
Entrepreneurs design, launch, and run new businesses. Therefore, most of their companies are initially small ones. They have ‘entrepreneurship.’
Entrepreneurship is the capacity and willingness to create and manage a business venture. It also includes being willing to take risks so that their venture can make a profit.
Entrepreneurs are enterprising people, i.e., they are daring in business and pursue their new ideas, regardless of the risks.
Furthermore, successful entrepreneurs often possess a unique blend of vision, resilience, and adaptability, allowing them to navigate the challenges and uncertainties inherent in starting and growing a business.
In the digital age, entrepreneurs have increasingly leveraged technology and online platforms to reach global markets, making it possible to scale businesses rapidly and more efficiently than ever before.
Entrepreneurship and jobs
Entrepreneurs have long been recognized as drivers of economic growth and job creation. Setting up a business is no easy task. Those who eventually succeed do not only benefit themselves, but the economy does too.
By introducing innovative products, services, and ideas to the market, entrepreneurs make an important contribution to the local and often national economy.
In an article published by Economic Impact Catalyst, Shannon McKenzie explains:
“Entrepreneurship creates jobs both directly and indirectly and affects employment growth overall. In addition to employment growth, job creation plays a huge role in many moving parts of the economy, affecting and shaping the world we live in today.”
Etymology of entrepreneur
Etymology is the origin of words and how they evolved over time.
The word ‘entrepreneur’ emerged in the English language in the 19th century. Initially, it meant a ‘manager or promoter of a theatrical production.’ The word comes from the French word ‘entreprendre,’ which means ‘to undertake.’
According to etymonline.com:
“The word first crossed the Channel late 15c. (Middle English entreprenour) but did not stay. Meaning ‘business manager’ is from 1852.”
According to the economist Joseph A. Schumpeter, an entrepreneur is not always driven by profit. Instead, they use it make comparisons with their previous performance to gauge their success. Schumpeter (1883-1950) was an Austrian-American political economist who worked as a Harvard University professor.
Entrepreneurs are important components of a capitalist economy. They are important because they contribute to the development of new goods and services.
They also ensure that larger companies adapt to the changes in the market because of the increasing competition that entrepreneurs represent.
Not all entrepreneurs follow the same path. However, typically they first identify an opportunity in the market or a problem that needs solving.
Then they plan how to solve that problem or exploit that opportunity by using a diverse set of skills.
Video – What is an Entrepreneur?
This video, from our sister channel on YouTube – Marketing Business Network, explains what an ‘Entrepreneur’ is using simple and easy-to-understand language and examples.