Entrepreneurs

Entrepreneurs is a buzzword that has been used to describe various types of people, activities, and phenomena in the world of business. But what exactly is an entrepreneurs ? Who are the entrepreneurs? What do they do? And why are they important?

In this blog article, we will explore the meaning, types, qualities and functions of entrepreneurs, and how they contribute to the economic and social development of society.

Related articles

1- When is open enrollment for health insurance 2024

2- Health Insurance: Everything You Need to Know

3- What and Who Can Apply for Nations Benefits

4- Learn Here How to Apply SSDI Benefits

What is an Entrepreneurs?

The word entrepreneur derives from the French verb ‘entreprendre’ which means ‘to undertake’¹. Today, the word sums up what it means to be proactive, innovative and passionate about business – ready to seize the opportunity¹.

According to Merriam-Webster, an entrepreneur is “one who organizes, manages, and assumes the risks of a business or enterprise”². This definition implies that an entrepreneur is not just someone who starts a business, but also someone who runs and grows it, and takes responsibility for its success or failure.

However, this definition may not capture the full essence of entrepreneurship, as it does not emphasize the creative and problem-solving aspects of being an entrepreneur. A more comprehensive definition may be:

An entrepreneur is an individual who sets up business or businesses, identifies and solves problems, creative, innovative, opportunist, risk-taker, self-starter and open-minded with the hope of making a profit from their enterprise³.

This definition highlights the various characteristics and skills that an entrepreneur needs to have in order to succeed in the competitive and dynamic market.

What are the Types of Entrepreneurs?

Entrepreneurs are not a homogeneous group of people. They come from different backgrounds, have different motivations, pursue different goals, and operate in different industries and sectors. Therefore, it is useful to classify entrepreneurs into different types based on some criteria.

One possible way to categorize entrepreneurs is based on their level of innovation. According to this classification, there are three types of entrepreneurs:

• Innovative entrepreneurs. These are the entrepreneurs who introduce new products or services, create new markets or industries, or use new methods or technologies. They are the pioneers and visionaries who challenge the status quo and create value for society. Examples of innovative entrepreneurs include Steve Jobs (Apple), Elon Musk (Tesla), Jeff Bezos (Amazon), Mark Zuckerberg (Facebook), etc.
• Imitative entrepreneurs. These are the entrepreneurs who copy or adapt the products or services, markets or industries, or methods or technologies of other entrepreneurs. They are the followers and adapters who exploit existing opportunities and improve on existing solutions. Examples of imitative entrepreneurs include Jack Ma (Alibaba), Brian Chesky (Airbnb), Travis Kalanick (Uber), etc.
• Fabian entrepreneurs. These are the entrepreneurs who are reluctant or slow to adopt new products or services, markets or industries, or methods or technologies. They are the conservatives and laggards who prefer to stick to traditional ways and avoid risks. Examples of Fabian entrepreneurs include family businesses, local shops, etc.

Another possible way to categorize entrepreneurs is based on their motivation. According to this classification, there are two types of entrepreneurs:

• Opportunity-driven entrepreneurs. These are the entrepreneurs who start a business because they see a gap in the market or a problem that needs a solution. They are motivated by their passion, vision, or ambition to create something valuable for themselves and others. Examples of opportunity-driven entrepreneurs include Richard Branson (Virgin), Oprah Winfrey (OWN), Sara Blakely (Spanx), etc.
• Necessity-driven entrepreneurs. These are the entrepreneurs who start a business because they have no other choice or alternative. They are motivated by their survival, security, or income needs. Examples of necessity-driven entrepreneurs include street vendors, freelancers, home-based workers, etc.

What are the Qualities of Entrepreneurs?

Entrepreneurs need to have certain qualities that enable them to succeed in their entrepreneurial endeavors. These qualities may vary depending on the type of entrepreneur, but some of them are common across all types. Some of the most important qualities of entrepreneurs are:

• Creativity. Creativity is the ability to generate novel and useful ideas that can solve problems or create value. Entrepreneurs need to be creative in order to identify opportunities, develop solutions, and overcome challenges.
• Innovation. Innovation is the ability to implement creative ideas into practical products or services that can satisfy customer needs or wants. Entrepreneurs need to be innovative in order to transform their ideas into reality and gain a competitive edge in the market.
• Opportunism. Opportunism is the ability to recognize and seize opportunities that arise in the environment. Entrepreneurs need to be opportunistic in order to exploit existing or emerging trends, gaps, or niches in the market.
• Risk-taking. Risk-taking is the ability to take calculated and informed risks that can lead to positive outcomes. Entrepreneur need to be risk-takers in order to pursue their goals, despite the uncertainty and potential failure.
• Self-starter. Self-starter is the ability to initiate and complete tasks without external supervision or assistance. Entrepreneur need to be self-starters in order to be independent, proactive, and responsible for their own actions and results.
• Open-mindedness. Open-mindedness is the ability to accept and consider different perspectives, opinions, and feedback. Entrepreneur need to be open-minded in order to learn from others, adapt to changes, and improve their performance.

What are the Functions of Entrepreneurs?

Entrepreneur perform various functions that contribute to the economic and social development of society. Some of the most important functions of entrepreneur are:

• Production. Production is the function of creating goods or services that can satisfy customer needs or wants. Entrepreneur produce goods or services by combining various factors of production, such as land, labor, capital, and technology.
• Distribution. Distribution is the function of delivering goods or services to customers through various channels, such as wholesalers, retailers, online platforms, etc. Entrepreneur distribute goods or services by establishing and managing supply chains, logistics, marketing, etc.
• Exchange. Exchange is the function of transferring goods or services from producers to consumers through various modes, such as money, barter, credit, etc. Entrepreneur exchange goods or services by setting and negotiating prices, terms, and conditions.
• Innovation. Innovation is the function of introducing new products or services, creating new markets or industries, or using new methods or technologies. Entrepreneur innovate by researching and developing new ideas, testing and launching new solutions, and scaling and sustaining new ventures.
• Employment. Employment is the function of providing jobs and incomes to people who work for or with entrepreneur. Entrepreneur employ people by hiring and training employees, contractors, partners, etc.
• Social responsibility. Social responsibility is the function of contributing to the well-being of society and the environment through ethical and sustainable practices. Entrepreneur act socially responsible by complying with laws and regulations, paying taxes and dues, donating to charities and causes, reducing waste and pollution, etc.

Conclusion

Entrepreneur are individuals who set up business or businesses, identify and solve problems, creative, innovative, opportunist, risk-taker, self-starter and open-minded with the hope of making a profit from their enterprise³. They can be classified into different types based on their level of innovation or motivation. They need to have certain qualities that enable them to succeed in their entrepreneurial endeavors. They perform various functions that contribute to the economic and social development of society.

Entrepreneur are the driving force behind the growth and progress of any economy and society. They create value for themselves and others by solving problems, satisfying needs, generating wealth, creating jobs, and making a difference.

Tags: Business | businesses | entrepreneurs | small business