Entrepreneur
Overview
 
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.
The term was originally a loanword
Loanword
A loanword is a word borrowed from a donor language and incorporated into a recipient language. By contrast, a calque or loan translation is a related concept where the meaning or idiom is borrowed rather than the lexical item itself. The word loanword is itself a calque of the German Lehnwort,...

 from French
French language
French is a Romance language spoken as a first language in France, the Romandy region in Switzerland, Wallonia and Brussels in Belgium, Monaco, the regions of Quebec and Acadia in Canada, and by various communities elsewhere. Second-language speakers of French are distributed throughout many parts...

 and was first defined by the Irish-French economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...

 Richard Cantillon
Richard Cantillon
Richard Cantillon was an Irish-French economist and author of Essai sur la Nature du Commerce en Général , a book considered by William Stanley Jevons to be the "cradle of political economy". Although little information exists on Cantillon's life, it is known that he became a successful banker and...

. Entrepreneur in English
English language
English is a West Germanic language that arose in the Anglo-Saxon kingdoms of England and spread into what was to become south-east Scotland under the influence of the Anglian medieval kingdom of Northumbria...

 is a term applied to a person who is willing to help launch a new venture or enterprise and accept full responsibility for the outcome. Jean-Baptiste Say
Jean-Baptiste Say
Jean-Baptiste Say was a French economist and businessman. He had classically liberal views and argued in favor of competition, free trade, and lifting restraints on business...

, a French economist, is believed to have coined the word "entrepreneur" in the 19th century - he defined an entrepreneur as "one who undertakes an enterprise, especially a contractor, acting as intermediatory between capital and labour".Guide to Management Ideas and Gurus, Tim Hindle, The Economist, page 77, A broader definition by Say: "The entrepreneur shifts economic resources out of lower and into higher productivity and greater yield."
The entrepreneur leads the firm or organization and also demonstrates leadership qualities by selecting managerial staff.
Encyclopedia
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.
The term was originally a loanword
Loanword
A loanword is a word borrowed from a donor language and incorporated into a recipient language. By contrast, a calque or loan translation is a related concept where the meaning or idiom is borrowed rather than the lexical item itself. The word loanword is itself a calque of the German Lehnwort,...

 from French
French language
French is a Romance language spoken as a first language in France, the Romandy region in Switzerland, Wallonia and Brussels in Belgium, Monaco, the regions of Quebec and Acadia in Canada, and by various communities elsewhere. Second-language speakers of French are distributed throughout many parts...

 and was first defined by the Irish-French economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...

 Richard Cantillon
Richard Cantillon
Richard Cantillon was an Irish-French economist and author of Essai sur la Nature du Commerce en Général , a book considered by William Stanley Jevons to be the "cradle of political economy". Although little information exists on Cantillon's life, it is known that he became a successful banker and...

. Entrepreneur in English
English language
English is a West Germanic language that arose in the Anglo-Saxon kingdoms of England and spread into what was to become south-east Scotland under the influence of the Anglian medieval kingdom of Northumbria...

 is a term applied to a person who is willing to help launch a new venture or enterprise and accept full responsibility for the outcome. Jean-Baptiste Say
Jean-Baptiste Say
Jean-Baptiste Say was a French economist and businessman. He had classically liberal views and argued in favor of competition, free trade, and lifting restraints on business...

, a French economist, is believed to have coined the word "entrepreneur" in the 19th century - he defined an entrepreneur as "one who undertakes an enterprise, especially a contractor, acting as intermediatory between capital and labour".Guide to Management Ideas and Gurus, Tim Hindle, The Economist, page 77, A broader definition by Say: "The entrepreneur shifts economic resources out of lower and into higher productivity and greater yield."

Leadership attributes

The entrepreneur leads the firm or organization and also demonstrates leadership qualities by selecting managerial staff. Management skill and strong team building abilities are essential leadership attributes for successful entrepreneurs. Scholar Robert. B. Reich
Robert Reich
Robert Bernard Reich is an American political economist, professor, author, and political commentator. He served in the administrations of Presidents Gerald Ford and Jimmy Carter and was Secretary of Labor under President Bill Clinton from 1993 to 1997....

 considers leadership
Leadership
Leadership has been described as the “process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task". Other in-depth definitions of leadership have also emerged.-Theories:...

, management ability, and team-building as essential qualities of an entrepreneur. This concept has its origins in the work of Richard Cantillon in his Essai sur la Nature du Commerce en (1755) and Jean-Baptiste Say See William J. Baumol, Robert E. Litan & Carl J. Schramm. Good capitalism, bad capitalism, and the economics of growth and prosperity 3 (2007), citing generally Peter F. Drucker. Innovation and entrepreneurship (1985) (attributing coining and defining of “entrepreneur” to Jean-Baptiste Say, a treatise on political economy (1834)); but see Robert H. Brockhaus, Sr., The Psychology of the Entrepreneur, in Encyclopedia of Entrepreneurship 40 (Calvin A. Kent, et al. eds. 1982), citing J. S. Mill, Principles of political economy with some of their applications to social philosophy (1848). Note that, despite Baumol et al.'s citation, the Drucker book was published in 1986. in his Treatise on Political Economy.

Entrepreneurs emerge from the population on demand, and become leaders because they perceive opportunities available and are well-positioned to take advantage of them. An entrepreneur may perceive that they are among the few to recognize or be able to solve a problem. Joseph Schumpeter
Joseph Schumpeter
Joseph Alois Schumpeter was an Austrian-Hungarian-American economist and political scientist. He popularized the term "creative destruction" in economics.-Life:...

 saw the entrepreneur as innovators and popularized the uses of the phrase creative destruction
Creative destruction
Creative destruction is a term originally derived from Marxist economic theory which refers to the linked processes of the accumulation and annihilation of wealth under capitalism. These processes were first described in The Communist Manifesto and were expanded in Marx's Grundrisse and "Volume...

 to describe his view of the role of entrepreneurs in changing business norms. Creative destruction encompasses changes entrepreneurial activity makes every time a new process, product or company enters the markets.

Influences, personality traits, and characteristics

The most significant influence on an individual's decision to become an entrepreneur is workplace peers and the social composition of the workplace. Entrepreneurs also often possess innate traits such as extroversion and a propensity for— risk-taking.—Nanda, R and Sorensen, J (2008) Workplace Peers and Entrepreneurship . According to Schumpeter, an entrepreneur characteristically innovates, introduces new technologies, increases efficiency, productivity, or generates new products or services. An entrepreneur acts as a catalyst for economic change and research indicates that entrepreneurs are highly creative individuals who imagine new solutions by generating opportunities for profit or reward.

There is a complexity and lack of cohesion between research studies that explore the characteristics and personality traits of, and influences on, the entrepreneur. Most studies, however, agree that there are certain entrepreneurial traits and environmental influences that tend to be consistent. Although certain entrepreneurial traits are required, entrepreneurial behaviours are dynamic and influenced by environmental factors. Shane and VenKataraman (2000) argue the entrepreneur is solely concerned with opportunity recognition and exploitation; however, the opportunity that is recognised depends on the type of entrepreneur which Ucbasaran et al. (2001) argue there are many different types dependent on their business and personal circumstances.

Psychological studies show that the psychological propensities for male and female entrepreneurs are more similar than different. Perceived gender differences may be due more to gender stereotyping. There is a growing body of work that shows that entrepreneurial behavior is dependent on social and economic factors. For example, countries which have healthy and diversified labor markets or stronger safety nets show a more favorable ratio of opportunity-driven rather than necessity-driven women entrepreneurs. Empirical studies suggest that women entrepreneurs possess strong negotiating skills and consensus-forming abilities.

New research regarding the qualities required for successful entrepreneurship is ongoing, with work from the Kauffman Foundation forming the statistical basis for much of it.

Social entrepreneur

A social entrepreneur
Social entrepreneurship
Social entrepreneurship is the work of social entrepreneurs. A social entrepreneur recognizes a social problem and uses entrepreneurial principles to organize, create and manage a venture to achieve social change . While a business entrepreneur typically measures performance in profit and return, a...

 is motivated by a desire to help, improve and transform social
Social
The term social refers to a characteristic of living organisms...

, environmental
Environment (biophysical)
The biophysical environment is the combined modeling of the physical environment and the biological life forms within the environment, and includes all variables, parameters as well as conditions and modes inside the Earth's biosphere. The biophysical environment can be divided into two categories:...

, educational and economic conditions. Key traits and characteristics of highly effective social entrepreneurs include ambition
Ambition
Ambition is the desire for personal achievement. It provides the motivation and determination necessary to achieve a particular end or condition. Ambitious people are characterised by their strong desire for attainment, power, or superiority...

 and a lack of acceptance of the status quo
Status quo
Statu quo, a commonly used form of the original Latin "statu quo" – literally "the state in which" – is a Latin term meaning the current or existing state of affairs. To maintain the status quo is to keep the things the way they presently are...

 or accepting the world "as it is". The social entrepreneur is driven by an emotional desire to address some of the big social and economic conditions in the world, for example, poverty
Poverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...

 and educational deprivation, rather than by the desire for profit
Profit (economics)
In economics, the term profit has two related but distinct meanings. Normal profit represents the total opportunity costs of a venture to an entrepreneur or investor, whilst economic profit In economics, the term profit has two related but distinct meanings. Normal profit represents the total...

. Social entrepreneurs seek to develop innovative solutions to global problems that can be copied by others to enact change.

Social entrepreneurs act within a market aiming to create social value through the improvement of goods and services offered to the community. Their main aim is to help offer a better service improving the community as a whole and are predominately run as non profit schemes. Zahra et al. (2009: 519) said that “social entrepreneurs make significant and diverse contributions to their communities and societies, adopting business models to offer creative solutions to complex and persistent social problems”.

Serial entrepreneur

A serial entrepreneur is one who continuously comes up with new ideas and starts new businesses. In the media, the serial entrepreneur is represented as possessing a higher propensity for risk, innovation and achievement. Serial entrepreneurs are more likely to experience repeated entrepreneurial success. They are more likely to take risks and recover from business failure.

Lifestyle entrepreneur

A lifestyle entrepreneur places passion before profit
Profit (economics)
In economics, the term profit has two related but distinct meanings. Normal profit represents the total opportunity costs of a venture to an entrepreneur or investor, whilst economic profit In economics, the term profit has two related but distinct meanings. Normal profit represents the total...

 when launching a business in order to combine personal interests and talent with the ability to earn a living. Many entrepreneurs may be primarily motivated by the intention to make their business profitable in order to sell to shareholders. In contrast, a lifestyle entrepreneur intentionally chooses a business model
Business model
A business model describes the rationale of how an organization creates, delivers, and captures value...

 intended to develop and grow their business in order to make a long-term, sustainable and viable living working in a field where they have a particular interest, passion, talent, knowledge or high degree of expertise. A lifestyle entrepreneur may decide to become self-employed in order to achieve greater personal freedom, more family time and more time working on projects or business goals that inspire them. A lifestyle entrepreneur may combine a hobby with a profession or they may specifically decide not to expand their business in order to remain in control of their venture. Common goals held by the lifestyle entrepreneur include earning a living doing something that they love, earning a living in a way that facilitates self-employment, achieving a good work/life balance and owning a business without shareholders. Many lifestyle entrepreneurs are very dedicated to their business and may work within the creative industries
Creative industries
The creative industries refers to a range of economic activities which are concerned with the generation or exploitation of knowledge and information...

 or tourism industry, where a passion before profit approach to entrepreneurship
Entrepreneurship
Entrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response...

 often prevails. While many entrepreneurs may launch their business with a clear exit strategy
Exit strategy
An exit strategy is a means of leaving one's current situation, either after a predetermined objective has been achieved, or as a strategy to mitigate failure. An organisation or individual without an exit strategy may be in a quagmire...

, a lifestyle entrepreneur may deliberately and consciously choose to keep their venture fully within their own control. Lifestyle entrepreneurship
Entrepreneurship
Entrepreneurship is the act of being an entrepreneur, which can be defined as "one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods". This may result in new organizations or may be part of revitalizing mature organizations in response...

 is becoming increasing popular as technology provides small business
Small business
A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships...

 owners with the digital platforms needed to reach a large global market. Younger lifestyle entrepreneurs, typically those between 25 and 40 years old, are sometimes referred to as Treps.

18th Century Entrepreneurs

  • Samuel Crompton
    Samuel Crompton
    Samuel Crompton was an English inventor and pioneer of the spinning industry.- Early life :Samuel Crompton was born at 10 Firwood Fold, Bolton, Lancashire to George and Betty Crompton . Samuel had two younger sisters...

     (Spinning Mule), UK
  • Thomas Newcomen
    Thomas Newcomen
    Thomas Newcomen was an ironmonger by trade and a Baptist lay preacher by calling. He was born in Dartmouth, Devon, England, near a part of the country noted for its tin mines. Flooding was a major problem, limiting the depth at which the mineral could be mined...

     (Steam Engine), UK
  • James Watt
    James Watt
    James Watt, FRS, FRSE was a Scottish inventor and mechanical engineer whose improvements to the Newcomen steam engine were fundamental to the changes brought by the Industrial Revolution in both his native Great Britain and the rest of the world.While working as an instrument maker at the...

     (Steam Engine), UK

19th Century Entrepreneurs

  • John Jacob Astor
    John Jacob Astor
    John Jacob Astor , born Johann Jakob Astor, was a German-American business magnate and investor who was the first prominent member of the Astor family and the first multi-millionaire in the United States...

     (Real estate), New York, USA
  • Andrew Carnegie
    Andrew Carnegie
    Andrew Carnegie was a Scottish-American industrialist, businessman, and entrepreneur who led the enormous expansion of the American steel industry in the late 19th century...

     (Steel), Pittsburgh, USA
  • James Buchanan Duke
    James Buchanan Duke
    James Buchanan Duke was a U.S. tobacco and electric power industrialist best known for his involvement with Duke University.-Personal life:...

     (Tobacco), Durham, North Carolina, USA
  • J. P. Morgan
    J. P. Morgan
    John Pierpont Morgan was an American financier, banker and art collector who dominated corporate finance and industrial consolidation during his time. In 1892 Morgan arranged the merger of Edison General Electric and Thomson-Houston Electric Company to form General Electric...

     (Finance), New York, USA
  • John D. Rockefeller
    John D. Rockefeller
    John Davison Rockefeller was an American oil industrialist, investor, and philanthropist. He was the founder of the Standard Oil Company, which dominated the oil industry and was the first great U.S. business trust. Rockefeller revolutionized the petroleum industry and defined the structure of...

     (Oil), USA
  • Leland Stanford
    Leland Stanford
    Amasa Leland Stanford was an American tycoon, industrialist, robber baron, politician and founder of Stanford University.-Early years:...

     (Railroads), California, USA
  • Joseph Seligman
    Joseph Seligman
    Joseph Seligman was a prominent U.S. banker, and businessman. He has been described as a "robber baron". He was born in Baiersdorf, Germany, emigrating to the United States when he was 18. With his brothers, he started a bank, J. & W. Seligman & Co., with branches in New York, San Francisco, New...

     (Banking), USA
  • Cornelius Vanderbilt
    Cornelius Vanderbilt
    Cornelius Vanderbilt , also known by the sobriquet Commodore, was an American entrepreneur who built his wealth in shipping and railroads. He was also the patriarch of the Vanderbilt family and one of the richest Americans in history...

     (Railroads), USA

20th Century Entrepreneurs

  • Otto Beisheim
    Otto Beisheim
    Otto Beisheim is a German businessman and founder of Metro AG.In 2010, his net worth was estimated at US$3.6 billion; he is #249 on the Forbes list of billionaires.-WWII:...

     (Retail), Germany
  • Sir Richard Branson
    Richard Branson
    Sir Richard Charles Nicholas Branson is an English business magnate, best known for his Virgin Group of more than 400 companies....

     (Media and Transportation), UK
  • Larry Ellison
    Larry Ellison
    Lawrence Joseph "Larry" Ellison is the co-founder and chief executive officer of Oracle Corporation, one of the world's leading enterprise software companies. As of 2011, he is the third wealthiest American citizen, with an estimated worth of $33 billion.- Early life :Larry Ellison was born in the...

     (Computers), USA
  • Bill Gates
    Bill Gates
    William Henry "Bill" Gates III is an American business magnate, investor, philanthropist, and author. Gates is the former CEO and current chairman of Microsoft, the software company he founded with Paul Allen...

     (Computers), Seattle, USA
  • Carlos Slim (Telecommunications), Mexico
  • Steve Jobs
    Steve Jobs
    Steven Paul Jobs was an American businessman and inventor widely recognized as a charismatic pioneer of the personal computer revolution. He was co-founder, chairman, and chief executive officer of Apple Inc...

     (Computers), USA
  • Ingvar Kamprad
    Ingvar Kamprad
    Ingvar Feodor Kamprad is a Swedish and the founder of IKEA, a retail company.According to Forbes magazine, as of 2011 he is the 162nd wealthiest person in the world with an estimated net worth of around US$6 billion in 2011...

     (Retail), Sweden
  • Henry Hu (Technology), Hong Kong
  • Johnny Sandelson
    Johnny Sandelson
    Johnny Sandelson is a UK businessman, entrepreneur and award-winning real estate developer. He is best known for investing in a number of high profile property ventures. He proposed the 1,000,000 sq. ft...

     (Property), UK

21st Century Entrepreneurs

  • Vijay Mallya
    Vijay Mallya
    Vijay Mallya is an Indian liquor and airline baron. The son of industrialist Vittal Mallya, he is the chairman of the United Breweries Group and Kingfisher Airlines. His United Spirits is world's second largest liquor maker, by volume...

     (United Breweries), India
  • Mark Zuckerberg
    Mark Zuckerberg
    Mark Elliot Zuckerberg is an American computer programmer and Internet entrepreneur. He is best known for co-creating the social networking site Facebook, of which he is chief executive and president...

     (Internet), USA
  • Drew Houston
    Drew Houston
    Andrew "Drew" Houston is an American internet entrepreneur and is best known for being the founder and CEO of Dropbox, an online backup and storage service. According to Forbes magazine, he has a net worth of $400 million US dollars.-Early life:...

     (Internet), USA
  • Jack Dorsey (Internet), USA
  • Kevin Rose
    Kevin Rose
    Kevin Rose is an American Internet entrepreneur who co-founded Revision3, Digg, Pownce, and Milk...

     (Internet), USA

See also

  • Business oligarch
    Business oligarch
    Business oligarch is a near-synonym of the term "business magnate", borrowed by the English speaking and western media from post-Soviet parlance to describe the huge, fast-acquired wealth of some businessmen of the former Soviet republics during the privatization in Russia and other post-Soviet...

  • Businessperson
    Businessperson
    A businessperson is someone involved in a particular undertaking of activities for the purpose of generating revenue from a combination of human, financial, or physical capital. An entrepreneur is an example of a business person...

  • Captain of industry
    Captain of industry
    "Captain of industry" was a term originally used in the United Kingdom during the Industrial Revolution describing a business leader whose means of amassing a personal fortune contributes positively to the country in some way....

  • Financier
    Financier
    Financier is a term for a person who handles typically large sums of money, usually involving money lending, financing projects, large-scale investing, or large-scale money management. The term is French, and derives from finance or payment...

  • Media proprietor
    Media proprietor
    A media proprietor is a person who controls, either through personal ownership or a dominant position in any media enterprise. Those with significant control of a public company in the mass media may also be called "media moguls", "tycoons", "barons", or "bosses".The figure of the media proprietor...

  • Robber baron (industrialist)
    Robber baron (industrialist)
    Robber baron is a pejorative term used for a powerful 19th century American businessman. By the 1890s the term was used to attack any businessman who used questionable practices to become wealthy...

  • Investor
    Investor
    An investor is a party that makes an investment into one or more categories of assets --- equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc...

  • Entrepreneurship education
    Entrepreneurship education
    Entrepreneurship education seeks to provide students with the knowledge, skills and motivation to encourage entrepreneurial success in a variety of settings...

  • Erasmus for Young Entrepreneurs
    Erasmus for Young Entrepreneurs
    Erasmus for Young Entrepreneurs is Europe’s new mobility scheme that aims at helping new entrepreneurs to acquire relevant skills for managing a small or medium-sized enterprise by spending time in a business in another EU country...

  • Factors of production
    Factors of production
    In economics, factors of production means inputs and finished goods means output. Input determines the quantity of output i.e. output depends upon input. Input is the starting point and output is the end point of production process and such input-output relationship is called a production function...

  • Infopreneur
    Infopreneur
    Infopreneur is a person whose primary business is gathering and selling electronic information. This term is a neologism portmanteau derived from the words "information" and "entrepreneur". An infopreneur is generally considered an entrepreneur who makes money selling information on the Internet...

  • Operational risk
    Operational risk
    An operational risk is, as the name suggests, a risk arising from execution of a company's business functions. It is a very broad concept which focuses on the risks arising from the people, systems and processes through which a company operates...

  • Venture capitalist

Further reading

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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