What is an Entrepreneur?
At first glance this may seem to be a redundant question, especially for a website containing articles about entrepreneurship. Before you decide that you already have a clear picture in your mind of what an entrepreneur is, I encourage you to finish reading and also read the article I that I will link to at the end of the post.
Many times, especially in the online arena, we tend to think of entrepreneurs as innovators. People such as Steve Jobs (Apple), Mark Zuckerburg (Facebook), and Aaron Patzer (Mint.com) come to mind. These are the people who have thought up and created a proprietary product or service along with their team, and have created a fundamental change and lasting impact on how business is conducted in the applicable vertical. We also realize that many small business owners are entrepreneurs, yet because of their more commonplace businesses and strategies we tend to recognize with less grandeur and significance. The lines between entrepreneur and “regular employee” tend to get a bit fuzzy when someone who is a partner in a firm or practice (doctor or attorney) is brought up. Surely these people are entrepreneurs because they undertook risk in an effort to start and perpetuate the business that they are in, yet their profession is one which has existed for many years and there is little to no proprietary information or products proceeding from the work that they accomplish.
In a recent article on Techcrunch.com, Vivek Wadhwa related his best and most accurate definition on what defines an entrepreneur. He cites opinions from Peter Drucker, who believes that entrepreneurs must be innovators, and from personal contacts and experiences which support the idea that anyone who undertakes a risk to create economic opportunity is an entrepreneur. After much discussion and discourse, Vivek came to the conclusion (under the guide and influence of Carl Schramm and Bob Litan – authors of Good Capitalism, Bad Capitalism) that all who undertake risk are entrepreneurs. Additionally, entrepreneurs can be subsequently subdivided into two groups.
Innovative Entrepreneurs – Those who create new things, those who are considered pioneers in their industry, those who create proprietary products and services.
Replicative Entrepreneurs – Those who undertake risk in the form of an already established industry (i.e. attorney, plumber, electrician, etc.)
While I completely agree with the findings of the Vivek, Carl, and Bob, I do think there is even more room in the community of entrepreneurs to include a subset or two more. I do think it is completely possible to be an entrepreneur as an employee of an establishment, or as a consultant who has no financial stake or risk associated with a business, but is responsible for the overall direction and well being of the business (more on these ideas are coming in future posts).
How do you define an entrepreneur? Do you believe that entrepreneurs must be innovators in order to have maintain the title of “entrepreneur”? Why/why not?
Entrepreneurship is a life style. Is an attitude and is a sense of freedom for those that really want to achieve their goals in life and business. An entrepreneur needs to be open minded, social, flexible to overcome difficulties and an avid learner.
I don't agree. Sure an employee can be entrepreneurial, but they are not an entrepreneur. I'm not sure why people feel the need to complicate the definition beyond:
someone who organizes a business venture and assumes the risk for it
I'm not totally on board with calling entrepreneurship a lifestyle. Not all entrepreneurs pursue their own ventures to gain a sense of freedom. Those who go into business exclusively for themselves may, but those who start a venture with the intention of creating an established sizable enterprise very likely trade many hours of their freedom and personal time.
What you said in the second part of your comment is very accurate and perceptive. The characteristics you listed (learner, flexible, etc.) are extremely applicable and ones which we can all aspire to develop and regularly practice.
Thanks for the comment. I will be looking forward to future comments and interaction!
I appreciate the raw and simple definition. Despite its simplicity, it still does seem a bit unclear. Traditionally, the word risk in your definition would be understood as financial risk, yet at a time when starting a business can be accomplished with extremely minimal costs to the person who starts it, then perhaps the risk must take another form. Could risk then involve personal reputation, employment, etc? I don't mean to imply that it does/should, yet I think the discussion is worthwhile.
Thanks for the disagreement and discussion. I will be looking forward to more of it.
I'd disagree about the financial risk, the reality is most employees face very similar financial risk to entrepreneurs (who start small businesses) and entrepreneurs starting high growth businesses tend to risk other people money.
As for the risks, I've recently argued (http://www.businessopportunitiesandideas.com/11...) that being employed is actually as risky, if not riskier in today's climate, so I'd have to agree that the risk is more about personal reputation and pride these days.
Great article!!!
It is advisable for all those entrepreneurs trying to find out about their duties and responsibilities out there. When I first joined startups.com for assistance I kept on making questions to find out about specific job descriptions. And so do others. However, nobody takes the time to wonder about the importance and the description of what being an entrepreneur really means.
Amazing article, I liked it a lot!.
Very informative.Thanks for sharing this great article! This is exactly what I was looking for. That is very interesting and I am always searching for comprehensive information like this!
Very informative.Thanks for sharing this great article! This is exactly what I was looking for. That is very interesting and I am always searching for comprehensive information like this!