An entrepreneur is a person who organizes and operates a business with the aim to make a profit. They identify a need and determine a solution for that need. An entrepreneur manages their business with the knowledge that there is risk involved. In exchange for that risk, they potentially profit from the business’s success. While the term is often associated with startups and small businesses, any founder of a successful company began as an entrepreneur. Such examples include Steve Jobs, founder of Apple, and Bill Gates, creator of Microsoft.
Entrepreneurship is the act of creating a business or businesses with building and scaling it to generate a profit. An entrepreneur takes an idea and executes it. Entrepreneurship concerns the execution of the idea.
There is debate over the exact definition of an entrepreneur and who falls under it. For example, some believe that anyone who works from themselves is an entrepreneur, while others suggest that entrepreneurs don’t just work independently for their own business, but must also have a hand in innovation and leadership.
Types of entrepreneurships
Debate over the term may stem from the many types of entrepreneurships:
- Small business: When a person owns and runs their own business. They typically hire local employees and family members. Examples include hairdressers, small boutiques, consultants, and plumbers.
- Large business: A small business entrepreneurship can turn into a large business entrepreneurship if the company rapidly grows. The entrepreneur is an advanced professional who knows how to sustain innovation. Examples include Microsoft and Google.
- Scalable startup: The entrepreneur receives funding from venture capitalists and hires specialized employees. These kinds of entrepreneurs are often located in Silicon Valley and seek rapid expansion and big profit returns. Examples include Facebook and Uber.
Types of entrepreneurs
The type of entrepreneur varies depending on personality, background, and country:
- Social: Wants to solve social problems with their product or service to make the world a better place. They are not as concerned with generating big profit.
- Innovative: Consistently comes up with new ideas and inventions. This type of entrepreneur looks for ways for their products to stand out from other products on the market.
- Hustler: Willing to work hard and put in the effort required. They do not give up easily and are willing to undergo challenges.
- Imitator: Uses others’ business ideas as inspiration. They look to improve certain products and services and learn from others’ mistakes.
- Researcher: Takes their time when starting their business. A researcher will ensure they understand every aspect of the business.
- Buyer: Uses their wealth to fuel their business ventures.
How to become an entrepreneur
Becoming an entrepreneur requires a lot of determination, skill, and persistence. Steps to becoming an entrepreneur include:
- Having a great idea people will pay money for
- Creating a detailed plan for success
- Being consistent with execution and having dedication to the plan