What Is An Entrepreneur?

What Is An Entrepreneur In Simple Words? 2022

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What Is An Entrepreneur?

What defines an entrepreneur? Entrepreneurship is the process of starting a business to make a profit.

It involves recognizing a gap in the economy and finding a solution by developing a business, managing, and running it while undertaking all the risks.

Entrepreneurship makes use of labor, land, capital, and natural resources to make a profit. It is a method of combining resources to produce money and profits.

It is a process that leads to the discovery of new goods and services to bridge a social or economic gap in society.

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What Is An Entrepreneur In Simple Words?

What Is An Entrepreneur In Simple Words?

What is an entrepreneur and what do they do? An entrepreneur is an individual who uses the locally available raw material to make new products. The individual recognizes the gap and aims to bridge it by developing new products and selling them to make a profit.

The entrepreneur uses land, natural resources, capital, and labor to discover and develop new products.

An entrepreneur endures all the risks associated with venturing into a new business but enjoys most of the rewards in the form of profits. 

Successful entrepreneurs are rewarded with fame, profits, and continued growth opportunities, while those who fail to suffer major losses.

An entrepreneur is thought to be a source of new ideas, services, and goods.

He/She is said to be risk-tolerant, takes advantage of, and responds to an opportunity, and he is an inspiration to others and a leader.

A successful entrepreneur needs to possess the following traits: open-minded, confident, have strong people skill, disciplined, self-starter, creative, competitive, passionate, have strong work ethics, and determined (Piispanen et al., 2018).

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Entrepreneurship Impact On Economy

Entrepreneurship has a significant impact on the growth of a country’s economy (Davari & Farokhmanesh, 2017).

It is promoted by factors such as the economy, technology, culture, and education.

The availability of all these factors dramatically promotes entrepreneurship and motivates an entrepreneur’s mind to develop new ideas and products.

Economic factors that affect entrepreneurship include the availability of capital, the supply of skilled labor, raw materials, ready market, and developed infrastructure.

Social factors impact entrepreneurship in a great way. These social factors include the cultural values, the attitude of the society towards new products, and the family background.

The attitude of the society towards new commodities, for instance, may discourage entrepreneurs if society is rigid to change.

Motive and need for achievement are psychological factors that affect entrepreneurs. Advance technology encourages entrepreneurial ideas.

Entrepreneurship has both positive and negative impacts on the economy and the states at large. 

It boosts economic growth through the introduction of new inventions in technology, services, and goods.

It increases competition, which urges existing firms to be more innovative and create new products (Parker, 2018). 

Entrepreneurship creates job opportunities and raises the productivity of economies and firms.

Not all business startups flourish. Some collapse, leading to considerable losses to the entrepreneur, which may also affect the taxpayer if it was a national project.

Entrepreneurship leads to self-employment, which limits job opportunities.

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Entrepreneurial Challenges

Entrepreneurs face many challenges when developing and managing new business ventures.

The main challenge faced by many entrepreneurs is insufficient finances to start and run the firms.

Many entrepreneurs shy away from developing new products for fear of their products, not being a success.

Some lack the risk-taking capacity and have less market experience.

Most of the current business environment is corrupt, leading to the exploitation of the entrepreneur with little remuneration.

Some of the upcoming entrepreneurs lack strategic plans to launch and run their new ventures leading to their collapse (Fayolle, 2018). 

The markets have strict rules which do not favor the entry of new entrepreneurs.

Some entrepreneurs lack adequate training on how to develop, promote, and sell a product, thus facing challenges when venturing into a new market (Strow & Strow, 2018).

Faq

What is serial entrepreneurship?

A serial entrepreneur is someone who creates and launches new businesses repeatedly.

What is the difference between entrepreneur and intrapreneur?

The difference between an entrepreneur and an intrapreneur is that an entrepreneur creates and runs the business whereas an intrapreneur is an employee.

REFERENCES

Davari, A., & Farokhmanesh, T. (2017). Impact of entrepreneurship policies on opportunity to startup. Management Science Letters7(9), 431-438.

Fayolle, A. (2018). Personal views on the future of entrepreneurship education. In A research agenda for entrepreneurship education. Edward Elgar Publishing.

Parker, S. C. (2018). The economics of entrepreneurship. Cambridge University Press.

Piispanen, V. V., Paloniemi, K. J., & Simonen, J. (2018). Qualities of the growth-oriented entrepreneur. International Journal of Entrepreneurship and Small Business34(1), 112-130.

Strow, B., & Strow, C. (2018). Institutional barriers to productive public-sector entrepreneurship. Journal of Entrepreneurship and Public Policy.

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