A Google search for ‘definition of entrepreneurship’ revealed various questions and responses about the same. The responses were provided from Investopedia.com, including:
What is the main definition of entrepreneurship? An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The process of setting up a business is known as entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.
What is the new definition of entrepreneurship? It leaves out the idea that entrepreneurship is a way of thinking. It’s a mindset that is opportunity obsessed, holistic in approach and leadership balanced. This new definition of entrepreneurship is about innovation; about seeing problems as opportunities, and about changing the world.
What is the definition of entrepreneurship by different scholars? Entrepreneurship is the ability of organization and planning of various sources of production, in the form of a production unit. Entrepreneurship indicates some creative, as well as external and open systems. It performs the functions of innovations, reducing risk burdens, and providing dynamic leadership.
Here are definitions from several entrepreneurs – ones that clearly have already achieved success as an entrepreneur:
“An entrepreneur is someone who can define the business they want to create, see where it is going, and do the work to get there.” – Mark Cuban, Entrepreneur and Shark Tank Investor
“A person who solves problems for people, at a profit.” – Jared Joyce, Entrepreneur and Inventor
“What differentiates entrepreneurs from everybody else is a vision of something that doesn’t exist (either at all or in the form they envision) and the willingness to do what other people are unwilling to do to make that vision a reality.” – Rob Irizarry, Tech Entrepreneur, Investor and Consultant
“The single most defining characteristic of an entrepreneur is passion. It helps to be pushy – pushy people deliver. It helps to have a gimmick – a unique gimmick will give you a great leap over your competitors. It helps to be willing to fail – all my best business successes came on the heels of what first appeared to be a big flop. But great passion is what it really takes to build a successful business.” – Barbara Corcoran, Entrepreneur and Shark Tank Investor
A while back on LinkedIn, I asked the question, “How do you define entrepreneurship?” To my surprise the discussion was quite vibrant as there were numerous responses, a few exchanges for further clarification, numerous likes, and really some great perspective into entrepreneurship. Below please find some of the responses; unedited, I might add. I’ve kept the quotes anonymous (to protect the innocent – LOL). Upon reading the same, please share your thoughts about entrepreneurship. Thanks.
How do you define entrepreneurship?
My favorite definition has always been as follows: “Entrepreneurship is living a few years of your life like most people WON’T, so that you can live the rest of your life, like most people CAN’T.”
Entrepreneur: Anyone who takes the napkin drawing, turns it into something they are proud of, and that their business can actually run without them.
Someone that is willing to endure risk to take responsibility of their financial future.
A dreamer who is willing to take risks. It has nothing to do with success – that’s an entirely different definition.
I love all of the above. But to me it all comes down to money. It’s someone who took a financial risk to run their own business and who gets a well-deserved financial reward at the end of the day. It’s the old risk to reward theory. Let’s face it that’s what drives entrepreneurs. It’s all about the money. No apology necessary. LOL.
Money drives some more than others. For many it is the satisfaction of seeing an idea “take hold” and create “value” however that is ultimately defined. That part is more personal. Risk is inherent. Work is necessary. Success. Failure. All elements to be navigated. For some the journey itself is important. For others, yes, it’s just about the money.
There are many entrepreneurs who have tried and failed financially. That does not strip them of the title. And there are many who “deserved” a financial reward, but for many reasons, didn’t get it. Most often, in franchising, the founders were entrepreneurs: they had vision, passion and enough sense to get the business to a level that attracted others. Then great business managers took it over the finish line. So, again, I think we have to separate the idea from the result when defining these terms.
Executing your idea!
A person who believes in all things, hopes in all things, bears all things, and endures all things.
I’m a BIG FAN of Shark Tank which airs on Friday nights. One of the Sharks has a favorite saying. That is “It’s all about the money”. You see an entrepreneur who tries and fails, although admirable, is not called an entrepreneur they’re called BROKE. I know this sounds cold but the point of going into business is to make money. If you don’t do that you’re out of business and again you’re called a failure not an entrepreneur. Any half head can start a business, but it takes a true entrepreneur to stay in business. I hope I’m not offending anyone. I’m just saying.
Many people file bankruptcy a few times before they become a success. Look at Donald Trump, he failed and failed again and is a success in his own right and he is one of many. Same goes for marriages…and I am not a pro at this topic, but many people fail in marriages but keep looking for their soul mate and someday find it because they believe that opportunity is out there for them to seize, and they never give up. I believe it is the will to keep moving and be passionate for what you want to achieve and being resourceful that guides you to success and resembles the character of being an entrepreneur. My two cents…
How does that saying go? “If at first you don’t succeed try try again.” When that passionate would-be entrepreneur does finally succeed at becoming profitable then I’m willing to award them the crown of entrepreneurship. Before that happens all they have is a hope, a dream and a prayer. Make no mistake I soooo applaud those with the guts to try and I applaud even louder for those who have tried and failed and tried and failed again only to become a success in a future endeavor. I love that spirit. It comes from the deepest depths of their heart’s and souls. How can one not admire that spirit. It’s the American Way. I love this exchange. What a great thread. Thanks Paul Segreto.
Somehow or another we should take into the equation a quote at EvanCarmichael.com – “As entrepreneurs we should be proud of what we create.” So, how much does “creation” play into entrepreneurship?
Creation is the foundation…the Entrepreneur is the creator and the risk taker (not just financially but emotionally, reputation, etc) but the Entrepreneur is also passionate, so the risk is minimized by the passion as their laser focus overcomes perceived obstacles….
Isn’t the “creation” of an enterprise and “creativity” all ways of describing nuances of the same thing? Just as entrepreneur is related, these days to the word enterprise. Isn’t “an enterprising entrepreneur” a redundancy as much as a “creative creation”?
One day, you wake up after pursuing your passion and vision with little regard for risk or the downside and find that you have built an incredible business. The thought of being an entrepreneur never crossed your mind. The fear of failure, never a consideration. Competition, economic crisis, managing change; all opportunities to compete and improve. You live for this stuff, — you thrive.
Entrepreneur = someone who is willing to continuously learn for better ways to solve problems.
Someone with a vision, drive, a willingness to undertake risk, and the passion to see it through.
There are words that we always hear when the conversation is about entrepreneurs and entrepreneurship (i.e Risk, passion, failure, money etc..) in my opinion we are all born with qualities of undertaking risks, rising from falls and failures, and passion to live and succeed. We all have them in our instincts; I would call it entrepreneurial spirit. All these qualities will come into play when and only: One (an entrepreneur) desires to do something no one else done it before, or a desire to achieve more than others thought possible; by doing a change and playing a game they will love, the business game. And of course, the money will come at the end as a reward and the fruit of the hard work.
All of these philosophical/high level definitions of entrepreneurship are correct. Entrepreneurship means something different to each and every one of us. After all, no two entrepreneurial journeys are equal. Having worked for myself for 14 years and with a start-up for 5 years prior to that, I’d like to break it down to what entrepreneurship means to the crazy microcosm called my brain. To me, an entrepreneur believes in Possibilities (of something). An entrepreneur has the vision and burning desire to find a need and fill it. An entrepreneur has the cajones to not only talk about it but “just do it”. He/she has the guts to sell himself and his dream. He/she has a real commitment to quality and customer service. A true entrepreneur is money motivated but not money driven, and he/she understands and accepts that he is the last person to get paid at the end of the day. And finally, a true entrepreneur is willing to swallow his/her pride no matter how successful he gets, and constantly listen and learn from others.
Someone who makes something happen and gets it done, starting with nothing!
A clinically insane person with a dose of ADD. Add two parts insecurity, ten parts passion, ten parts creativity. Mix well with five cases of aggression and perseverance. Spice liberally with vision, positive attitude, and a dash of ignorance. Serve on a large platter of hope and courage. Wash down meal with gallons of adrenalin. Repeat recipe. Wow… I just described myself! LOL
Have a great day. Make it happen. Make it count!