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.ĭefinitions of Entrepreneurship Įconomists have never had a consistent definition of "entrepreneur" or "entrepreneurship" (the word "entrepreneur" comes from the French verb entreprendre, meaning "to undertake"). Given the riskiness of a new venture, the acquisition of capital funding is particularly challenging, and many entrepreneurs deal with it via bootstrapping. He or she typically creates a business plan, hires labor, acquires resources and financing, and provides leadership and management for the business.Įntrepreneurs commonly face many obstacles when building their companies. An entrepreneur combines these to manufacture goods or provide services. Strive for distinction through excellence Įntrepreneurship is sometimes categorized among the factors of production, along with land/natural resources, labor and capital.As the main decision maker the entrepreneur monitors and controls the business activities.Īccording to Joseph Schumpeter (1883 - 1950) entrepreneurs regard profit as a standard for measuring achievement or success. The entrepreneur assumes all the risks and rewards of the venture and is usually the sole proprietary, a partner or the owner of the majority of shares in an incorporated venture.
Many fail, lose money, and close the business. Those who fail suffer losses and become less important in the markets. These are the people who have the skills and initiative necessary to anticipate current and future needs and bring good new ideas to market.Įntrepreneurs who are successful in taking on the risks of a startup are rewarded with profits, fame and continued growth opportunities. Entrepreneurs play a key role in any economy. An entrepreneur is a person who organizes a venture to benefit from an opportunity, rather than working as an employee.
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