Definition: Someone who assumes the financial risk of the initiation, operation and management of a business
In the most general sense of the word, an entrepreneur is someone who organizes a business venture and assumes the risk for it. But true entrepreneurship goes way beyond that simple definition.
When most people think of entrepreneurs, a few well-known names probably come to mind, including such people as Henry Ford, Andrew Carnegie and Bill Gates. But in fact, U.S. entrepreneurs number in the millions. Of the 16 million businesses in the United States, more than 12 million are operated as sole proprietorships. And while not all these businesses can be labeled "entrepreneurial ventures," many of them are.
Just who is an entrepreneur? Anyone who has ever looked at a problems and seen it as an opportunity is a likely prospect. The same goes for anyone who feels as if his ambition is held in check by corporate red tape. But it takes more than just cleverness and frustration with the status quo to get an entrepreneurial venture off the ground.
While there's no single entrepreneurial archetype, certain common traits indicate an entrepreneurial personality. For instance, the entrepreneurial adult first often appears as an entrepreneurial child. And although it's far from a necessary ingredient for entrepreneurship, the need to succeed is often greater among those whose backgrounds contain an extra struggle to fit into society.
In addition, contrary to popular belief, entrepreneurs aren't generally high-risk takers when they can't affect the outcome of the situation. They tend to set realistic and achievable goals, and when they do take risks, they're usually calculated ones based on facts and experience, rather than instincts.
Entrepreneurs are driven not by the need to make money, but by the need to make their dreams a reality. More often than not, money is a byproduct of an entrepreneur's motivation rather than the motivation itself.
Entrepreneurs are participants, not observers; players, not fans. And to be an entrepreneur is to be an optimist, to believe that with the right amount of time and money, you can do anything.