What is an entrepreneur... really?

Once you tell your friends that you're starting a business, they'll all call you an entrepreneur. But what is an entrepreneur?

• At Merriam-Webster online I learned that the word is from Old French, from entreprendre; to undertake. Their definition of entrepreneur is “one who organizes, manages, and assumes the risks of a business or enterprise.”

That covers everyone that starts a business. The beginning of any business is all about planning, organizing and managing. Risk? Get used to it.

• Still looking for a clearer answer to the “what is an entrepreneur” question, I checked out dictionary.com. Their Cultural Dictionary defines it as “one who starts a business or other venture that promises economic gain but that also entails risks”.

Okay, similar to the first definition, but money's mentioned. An investor in a business isn't an entrepreneur although they share the risk and reward of that business. They're not involved in the details of the business in the same way as the owner.

• And the dictionary.com Financial Dictionary defines what is an entrepreneur as “A risk-taker who has the skills and initiative to establish a business”.

Now we're getting somewhere! What is an entrepreneur? A risk-taker, for sure. That takes courage. Skills? They can be learned by anybody.

But initiative is different. An entrepreneur is often unwilling to settle for being unhappy with your present job (or lack of job). They take the initiative to DO SOMETHING about the situation. I don't think that most people understand how important taking the initiative really is! But most people never get past the grouching & complaining stage.

In my opinion, half the battle of becoming an entrepreneur is in your own mind. You have to stop thinking like an employee and become a person that makes things happen.

Sometimes that's really hard, because we're really not taught to work for ourselves. Career counselors guide us to fill jobs. But if you're hungry... or motivated, you'll figure out how to become an entrepreneur. And then you need to stay motivated enough to work thru the stages of opening your business. An entrepreneur has to come up with a concept, and plan the details. Without proper planning, they're likely to fail.

I read a definition of entrepreneur by Seth Godin, in his book The Bootstrapper's Bible. He said that an entrepreneur is trying to build a business that's bigger than themselves, with real equity. Calculated risks are often taken, and gratification is defered until a later date when the payoff (sale of the business) comes, assuming the business survives & thrives.

So is anybody that starts any kind of business an entrepreneur? Yes, because any business goes thru the same basic steps. And all businesses have risk and offer eventual reward. What about someone that works solo... a freelancer? Godin goes on to say that a freelancer is trying to earn a living by selling their talents... doing a job with no boss to answer to. You're free to ply your trade, craft, skill, whatever you do, and get paid for what you do. Maybe you'll have a few employees. But you're not creating a self-sustaining business. If you're not working, you're not getting paid. Because you ARE the business.

According to Wikipedia, a freelancer, freelance worker or freelance is a self-employed person who pursues a profession without a long-term commitment to any particular employer. That sounds like a perfect business model for many accidental entrepreneurs that lost their jobs and need to earn money.

Now that you know what an entrepreneur is, you may be curious about whether you could become one. Sure... there's probably a perfect business for anybody. Are there certain entrepreneur traits that make business success more likely or easier? Yes, definitely! Click here for a list of entrepreneur traits

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