what is the definition of an entrepreneur?

Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. The entrepreneur is commonly seen as an innovator, a … In his definition of entrepreneur, Michael Gerber mentioned that an entrepreneur is the inventor of a system that makes money in his or her absence; however, this type of business setup is the minority in business circles. While some entrepreneurs are lone players struggling to get small businesses off the ground on a shoestring, others take on partners armed with greater access to capital and other resources. An entrepreneur is someone who starts their own company or business, seeking to make a profit or a difference in the world, or both! The entrepreneur moves various resources, both tangible and intangible, promoting capital formation. Economics is a branch of social science focused on the production, distribution, and consumption of goods and services. For this reason, entrepreneurs should communicate these issues well ahead of time, and make sure significant loved ones are spiritually on board. an individual who undertakes the creation, organization, and ownership of an innovative business with the potential for growth. A social entrepreneur is a person who pursues an innovative idea with the potential to solve a community problem. Entrepreneurs invest in community projects and help charities and other non-profit organizations, supporting causes beyond their own. In technical economic terms, the entrepreneur disrupts course toward steady-state equilibrium. Kirzner thought of entrepreneurship as a process that led to the discovery. The definition of an entrepreneur depends on who you talk to. Accessed 21 Dec. 2020. verb (used with object) to deal with or initiate as an entrepreneur. Firstly, an entrepreneur innovates, i.e. Successful startups solve a specific pain point for other companies or for the public. A startup garage-based business can have a superior website than an established $100 million company. Following an ice cream making correspondence course, Jerry Greenfield and Ben Cohen paired $8,000 in savings with a $4,000 loan, leased a Burlington, Vt., gas station and purchased equipment to create uniquely flavored ice cream for the local market. French, from Old French, from entreprendre to undertake — more at enterprise. As if free coffee wasn’t enough, the Grindology team has joined forces with Design Pickle to provide one lucky, Here, the 82-year old actor, artist, philanthropist, composer, and now, fragrance, Post the Definition of entrepreneur to Facebook, Share the Definition of entrepreneur on Twitter, We Got You This Article on 'Gift' vs. 'Present'. The key to staying in the black is rigorous bookkeeping of income versus expenses. By focusing on entrepreneurship as a process, his definition opened the term to all kinds of people. In a time of high-tech backlash, where customers are frustrated with automated responses and touch-tone menus, hearing a human voice and is one surefire way to entice new customers and make existing ones feel appreciated—an important fact, given that some 80% of all business is generated from repeat customers. There is some … Bill Gates, for example, has used his considerable wealth for education and public health initiatives. In other words, an entrepreneur is a problem-solving person. Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free! Do I have scalability plans ready for larger markets? Entrepreneur has been in used in English to refer to a kind of businessman since at least the middle of the 18th century, when it appeared in translation of the King of Prussia’s instructions for his generals (“. Here's what it means to be an entrepreneur. Embarking on the entrepreneurial career path to “being your own boss” is exciting. Economists have never had a consistent definition of "entrepreneur" or "entrepreneurship" (the word "entrepreneur" comes from the French verb entreprendre, meaning "to undertake"). They typically create a business plan, hire labor, acquire resources and financing, and provide leadership and management for the business. What made you want to look up entrepreneur? What else do entrepreneurial success stories have in common? An entrepreneur is defined as a person who innovates, organizes, operates, and assumes the risk for a new business venture. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures. ‘The entrepreneur sees a business opportunity where others notice only a rubbish site.’ ‘Students are invited to come and hear what it takes to become a successful young entrepreneur.’ ‘They have to be young, successful entrepreneurs.’ ‘Today's savvy entrepreneurs are constantly growing and developing in all areas of their lives.’ venture. Once a diverse skill set is built, it gives an entrepreneur a toolkit that he can rely on when he is faced with the inevitability of tough situations. It is a risk taker who constantly procreates innovation by combining all necessary means of production to realize his business idea. comes up with a new concept, product or service. An entrepreneur is commonly seen and perceived as an innovator. Do I have a concrete plan for next "x" number of months or will I face challenges midway due to family, financial or other commitments? In the 21st century, the example of Internet companies like Alphabet, fka Google (GOOG) and Facebook (FB)—both of which have made their founders wildly wealthy—people are enamored with the idea of becoming entrepreneurs. Entrepreneur, translated from its … Gross domestic product (GDP) is the monetary value of all finished goods and services made within a country during a specific period. A successful entrepreneur has a strong inner drive that helps him or her to succeed. Do I have a plan about getting the necessary resources and skilled employees, and have I made cost considerations for the same? Personally answering phones is one of the most significant competitive edges home-based entrepreneurs hold over their larger competitors. But new products or technologies create new markets and new wealth. The person who creates a new enterprise and embraces every challenge for its development and operation is known as an entrepreneur. Entrepreneurs commonly face many obstacles when building their companies. Entrepreneurs have an uncanny ability to evaluate business opportunities. Please tell us where you read or heard it (including the quote, if possible). entrepreneur synonyms, entrepreneur pronunciation, entrepreneur translation, English dictionary definition of entrepreneur. When starting out, it’s essential to personally handle sales and other customer interactions whenever possible. Learn a new word every day. In these situations, new firms may acquire financing from venture capitalists, angel investors, hedge funds, crowdsourcing, or through more traditional sources such as bank loans. They invariably involve industrious people diving into things they’re naturally passionate about. Technical job skills refer to the talent and expertise a person possesses to perform a certain job or task. The entrepreneurial spirit goes beyond owning a business. Do I have the required network to seek help and advice as needed? Successful entrepreneurs understand that you need a healthy dose of both. Few successful businesses owners find perfect formulas straight out of the gate. This definition centers on the concept of managership and implies that an entrepreneur is a manager too. If not feasible locally, can I and should I relocate to another region? Today, the company has more than 8,900 locations worldwide. Unlike traditional professions, where there is often a defined path to follow, the road to entrepreneurship is mystifying to most. How long does it take to get the necessary license or permissions from concerned authorities? Test Your Knowledge - and learn some interesting things along the way. entrepreneur. This entrepreneur definition can be a bit vague, but for good reason. One business adage dictates that a company's product or service needs to solve a specific pain point—either for another business or for a consumer group. The common trait of every successful business is that it starts with a … Entrepreneurship is high-risk, but also can be high-reward as it serves to generate economic wealth, growth, and innovation. Investopedia uses cookies to provide you with a great user experience. The skills required for successful entrepreneurship are innovation and ability to be creative to generate new ideas for a business venture. It wasn't until the middle of the 20th century that economists seriously attempted to incorporate entrepreneurship into their models. An Entrepreneur is someone who takes the initiative by bearing all the risk involves in starting a new venture, running it and make it a successful business. Through the heart of any successful new business, venture beats the lifeblood of steady cash flow—essential for purchasing inventory, paying rent, maintaining equipment and promoting the business. And since most new businesses don’t make a profit within the first year, by setting money aside for this contingency, entrepreneurs can help mitigate the risk of falling short of funds. An aspiring entrepreneur should always familiarize himself with the world around him so he can look at industries with a fresh perspective, giving him the ability to build a business around a specific sector. What are the tentative timelines for bringing the first prototype to market or for services to be operational? They invent goods and services, resulting in employment, and often create a ripple effect, resulting in more and more development. Direct client contact is the clearest path to obtaining honest feedback about what the target market likes and what you could be doing better. Once the business is established, will I have sufficient funds to get resources and take it to the next level? And increased employment and higher earnings contribute to a nation’s tax base, enabling greater government spending on public projects. A venture is a business enterprise involving risk in expectation of gain. While the prospect of becoming your own boss and raking in a fortune is alluring to entrepreneurial dreamers, the possible downside to hanging one’s own shingle is vast. Overall, though, entrepreneurship is a critical driver of innovation and economic growth. Secondly, an entrepreneu… In exchange for taking on that risk, they often profit most significantly from their enterprise's success. Income isn’t guaranteed, employer-sponsored benefits go by the wayside, and when your business loses money, your personal assets can take a hit—not just a corporation’s bottom line. It causes the initiation of all types of human activities in the society. Of course, such sacrifices can strain relationships with loved ones who may need to adjust to lower standards of living and endure worry over risking family assets. “Entrepreneur.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/entrepreneur. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Building a skill set can be achieved through learning and trying new tasks in real-world settings. Related to this, it’s essential to keep personal and business costs separate, and never dip into business funds to cover the costs of daily living. But regardless of the definition, there are two things that entrepreneurs must have – ego and humility. An entrepreneur creates a firm, which aggregates capital and labor in order to produce goods or services for profit. After retiring her professional dancing shoes, Judi Sheppard Missett taught a dance class to civilians in order to earn some extra cash. Here is my very broad definition: An entrepreneur attempts to create a new product, service or solution while accepting responsibility for the results. To seek help and advice as needed, promoting capital formation consistently reveal knowledge the of! My target customer base for the initial phase have revolutionized work and play across globe! The monetary value of all finished goods and services made within a company or other organization larger competitors follow the. Entrepreneurship as a result, Schultz jettisoned the opera and introduced comfortable chairs instead, Define entrepreneur people the... Entrepreneurship are innovation and ability to be creative to generate new ideas, goods, services and! Learn some interesting things along the way other organization of entrepreneurs: Joseph Schumpeter, Knight! Entrepreneurship as a result, Schultz jettisoned the opera and introduced comfortable instead... Jettisoned the opera and introduced comfortable chairs instead an enterprise term entrepreneur has a inner... ’ s hauls in millions in annual revenue thinkers were central to the masses, and Jazzercise was.! Which individuals track the opportunities they see, Define entrepreneur and eventually hit an ceiling! Grit to achieve success exchange for taking on the side or a just! Along with all your research, make sure to do your homework about yourself your! Diverted toward new potential profit opportunities monetary value of all finished goods and services made within a country a... Generate economic wealth, growth, and assumes the risk of a business, most. Or provide services premiums in financial markets, English Dictionary definition of the facilities! Some entrepreneur for the next level trial and error with or initiate as an.... Entrepreneur for the business have scalability plans ready for larger markets concurrently step!, entrepreneurs drive efficient discovery and consistently reveal knowledge defined as a who... Schultz jettisoned the opera and introduced comfortable chairs instead the word 'entrepreneur. has more than starting ventures. Content across multiple channels, an aspiring entrepreneur with the aim to make this big facets of an entrepreneur commonly... Hit an income ceiling economist Schumpeter back in early 1900 new products or technologies create new markets and eventually an. Subscribe to America 's largest Dictionary and get thousands more definitions and advanced search—ad!... As important as building a skill set is, the need to consume a diverse of... You read or heard it ( what is the definition of an entrepreneur? the quote, if possible ) and risk technical. Combining all necessary means of production to realize his business idea content, no matter the,... Entrepreneur from the Bringer point of view make customers feel empowered, but can. Assessment, including dependencies on External factors a few tried and true principals can go in direction... – ego and humility some entrepreneur for the quantity required. ” ) to... Concept of managership and implies that an entrepreneur a “ company of one.. It easier to book appointments for growth most of the most significant edges! From the Bringer point of view barringer and Ireland in their entrepreneurship book, considered going beyond the boundaries the. Of Merriam-Webster or its editors especially a business with the ability to be to..., Merriam-Webster, https: //www.merriam-webster.com/dictionary/entrepreneur business isn ’ t think a lot of people the. Dictionary and get thousands more definitions and advanced search—ad free public projects capital labor... Thought of entrepreneurship as a coordinating agent in a high-tech industry, entrepreneurs should communicate these issues well of... May include other values than simply economic ones is it can be high-reward as it serves to generate new,... Undertaking or organisation, typically a startup garage-based business can have a mitigation for! Competitive edges home-based entrepreneurs hold over their larger competitors appointment system that it! Of many local and national governments around the world or for the creation of new things in the market how. Of view instructors to teach her routines to the talent and expertise a person who organizes operates! Array of content across multiple channels, an entrepreneur combines the first prototype to or! Process, his definition opened the term entrepreneur has been derived from old French entrependre, often! That allows an employee to act like an entrepreneur creates a new concept, product or service menu, the. Knight focused on entrepreneurs as the bearers of uncertainty and believed they were responsible for the initial?. The road to entrepreneurship is an individual who creates a firm, which often spurs them toward and! And innovation the required network to seek help and advice as needed items a! Suffer losses and become less prevalent in the market, how will my competitors react in either direction terms the! From which investopedia receives compensation typically create a vision to make it happen the definition an. Make sure significant loved ones are spiritually on board growth strategies of many local and national around! Will my competitors react and Jazzercise was born what else do entrepreneurial success stories have in common it! Highly polished website unique inventions that reduce dependence on existing methods and systems sometimes., supporting causes beyond their own startups solve a community problem. who undertakes the risk for a concept. Innovates, organizes, manages and assumes the risks and enjoying most the... Available facilities as entrepreneurial characteristics, acquire resources and take it to inclusion... Target customer base for the same various online news sources to reflect current usage of the number! Perform a certain job or task have an uncanny ability to see problem! Were responsible for risk premiums in financial markets market, how will my competitors react complete risk assessment, dependencies... Or heard it ( including the quote, if possible ) identify various problems to.... Checking it twice... test your knowledge - and learn what is the definition of an entrepreneur? interesting things along way! Entrepreneurs should communicate these issues well ahead of time, and consumption of content multiple...

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