A simple definition for ‘entrepreneur’ is a person who organises and operates a business venture while assuming the potential risks, in order to make a profit. However, the definition of entrepreneur can vary wildly from being interpreted as a person who thrives on change and risk, with unique qualities, to being defined as a person who has their own business.

Comparisons may be made between an entrepreneur and a small business owner. While the business owner may be content to create a stream of income which is sufficient to survive and replaces the income from employment, an entrepreneur will take substantial risks in order to produce superior wealth within a very short period of time.
Entrepreneurship was defined by Joseph Schumpeter, Austrian economist as using innovation. This may consist of new production methods, new products, new forms of organisation and new markets. This innovation can create new and higher demand, in turn generating higher revenue. If the revenue exceeds cost, higher returns are generated in a shorter space of time.

If entrepreneurs are to be defined as being risk takers, the risks are carefully calculated making the likelihood of success much higher. Entrepreneurs are believed by many to have certain personality traits which give them a natural ability to succeed in business ventures. However, being determined to succeed and being able to calculate risks appear to be the main qualities of an entrepreneur. Although entrepreneur and business owner are often likened, an entrepreneur will focus on growth of an enterprise and maximising opportunities, often taking greater risks than others in order to succeed.

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About The Author

Kara Copple

An experienced business and finance writer, sometimes moonlighting as a fiction writer and blogger.

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