The word ” Entrepreneur ” has been defined severally in different ages. Obviously, this article is on the verge to enlighten you more about who an entrepreneur is, the origin, earlier and the latest definition and concept.
The term “entrepreneur” was coined from the French word entrepreneur (verb), which means “to undertake”. Albeit, entrepreneur as a concept has been in existence for centuries yet, the classical and neo-classical economists couldn’t include entrepreneurs in their formal models.
They believe that pure information would be exposed to absolutely rational actors, with little or no mention for discovery and risk-taking. However, by the middle of the 20th century, serious attempts were made by economists to incorporate the concept of entrepreneurship into their models.
Paradoxically, three scholars of eminent personalities were pivoted to the inclusion of entrepreneurs into the economic model they are: Schumpeter, Frank Knight, and Israel Kirzner.
Schumpeter proclaimed that entrepreneurs – rather than companies – were saddled with the responsibilities of creating new things in other to maximize profit.
Knight advanced that entrepreneurs are the brunt bearers of uncertainty plus, they were risking takers in the financial markets.
While Kirzner on the other hand was of the opinion that entrepreneurship is a process that often led to beautiful discovery.
Read Also: How To Become A Successful Entrepreneur
Informatively, it has previously been defined as a person who operates a business (either small or large). Essence, an open-minded individual who identifies, create, innovate, take risks, and solve problems is known as an entrepreneur.
Essentially, entrepreneurs play a vital role in any country’s economy build up. They possess the skills and initiative required to anticipate the current and future unseen needs. They bring exciting ideas to the labor market.
The present-day definition has taken a wider dimension. An entrepreneur is seen as a person who, instead of working as an employee, build and operate a business (either small or large), take the risks and profit of the venture. Usually, an entrepreneur is always seen as a creator, innovator, the aboriginal of new concept, ideas and business or procedures.
Moreover, an entrepreneur who is willing and able to take risks during startup are usually rewarded with profits and growth opportunities. The brunt bearer are those who fail to take risks and they become less prevalent in the entrepreneurial world.
So, there are three types and they are; social, serial and lifestyle entrepreneur.
This is an entrepreneur who is after innovative ideas and solutions to every social problem. Usually, social entrepreneurs involve in non-profit engagement and are carried away by social responsibilities.
They are motivated to enhance socio-economic well being, environmental, health conditions, etc. of others. Great social entrepreneurs include; Maria Montessori, Bill Clinton, Florence Nightingale, Ibrahim Abouleish, Abraham M. George, and others.
This is another type who develops new ideas, starts and builds businesses, and at times transact with investors or prosperous shareholders.
Serial entrepreneurs are premium risk-takers with a series of exciting ideas. They have no interest in a company or a particular business career.
According to Forbes, serial entrepreneurs include Craig McCaw, Steve Blank, Andy Bechtolsheim, Michael Rubin, The Samwer brothers, Janus Friis the Skype pair, etc.
Those who are found in this category maximise profit from their personal passion. They recognize their lifestyle before every opportunity.
Some may be motivated to grow business to a certain level and sell it to investors, but the lifestyle types catch fun in growing a business they’re in love with and build such business into a free flow residual income that is sustainable.
In conclusion, the bedrock of any society is entrepreneurs. Their dealings bring about economic development. Therefore, an individual that could think or innovate an idea and implement it for humanity should never be taken for granted.