What is Entrepreneurship?

Entrepreneurship is the act of creating a business or businesses while building and scaling it to
generate a profit.

But as a basic entrepreneurship definition, that one is a bit limiting. The more modern
entrepreneurship definition is also about transforming the world by solving big problems. Like
bringing about social change or creating an innovative product that challenges the status quo of
how we live our lives on a daily basis.

What the entrepreneurship definition doesn’t tell you is that entrepreneurship is what people
do to take their career and dreams into their hands and lead it in the direction they want.

It’s about building a life on your own terms. No bosses. No restricting schedules. And no one
holding you back. Entrepreneurs are able to take the first step into making the world a better
place – for everyone in it, including themselves.

What is an Entrepreneur? Entrepreneur Definition

An entrepreneur is a person who sets up a business with the aim to make a profit.

This entrepreneur definition can be a bit vague, but for good reason. An entrepreneur can be a
person who sets up their first online store on the side or a freelancer just starting out.

The reason why they’re considered entrepreneurs, though some disagree, is because where
you start out isn’t necessarily where you’ll end up.

An entrepreneur is someone who starts a side hustle that can eventually create a full-time,
sustainable business with employees. Same with the freelancer, if your entrepreneurial mindset
is focused on creating a profitable business, you fit the entrepreneur definition.

But the entrepreneur meaning involves much more than being a business or job creator.

Entrepreneurs are some of the world’s most powerful transformers. From Elon Musk sending
people to Mars to Bill Gates and Steve Jobs making computers part of every household,
entrepreneurs imagine the world differently.

And the entrepreneur definition rarely ever talks about the enormous impact these thought
leaders have on the world.

Entrepreneurs see possibilities and solutions where the average person only sees annoyances
and problems.
Understanding what an entrepreneur is can help more people recognize the value they can –
and already do – contribute to the world.

What Is the Meaning of Entrepreneurship?

The meaning of entrepreneurship involves an entrepreneur who takes action to make a change
in the world. Whether startup entrepreneurs solve a problem that many struggle with each day,
bring people together in a way no one has before, or build something revolutionary that
advances society, they all have one thing in common: action.

It’s not some idea that’s stuck in your head. Entrepreneurs take the idea and execute it.
Entrepreneurship is about execution of ideas.

Let’s take a look at what real entrepreneurs have to say about the meaning of
entrepreneurship, and what it means to them on a personal level.

Altimese Nichole

Altimese Nichole, Founder of NicholeNicole shares: “Many are excited to become an

entrepreneur but get discouraged when reality hits. Entrepreneurship means staying
committed to your goals beyond your feelings of excitement. Stay the course and keep your
‘why’ in mind.”

Christopher Molaro's entrepreneurship definition

Founder and CEO of NeuroFlow Christopher Molaro says, “Entrepreneurship means being the
one that is willing to take a leap, work hard enough to sacrifice everything else around you, all
in the name of solving problems because no one else is capable or possesses the desire.”

Jolijt Tamanaha entrepreneur meaning

The meaning of entrepreneurship is a bit different for Jolijt Tamanaha, Director of Marketing
and Finance of Fresh Prints, who shares: “Entrepreneurs make their way down a never-ending
list of problems with grit, passion, and energy. While intense, being an entrepreneur means you
get to live life learning an incredible amount and maximize your impact on the world because
you have to tackle the hardest problems.”
Nicole Faith

Here’s how Nicole Faith, Founder of 10 Carat Creations, breaks it down: “Being an entrepreneur
means having a plan and vision but still succeeding or trying to succeed when the plan falls
apart and you’re left with only your vision. It also means knowing when to give up, especially if
your idea isn’t working due to forces outside of yourself.”

James Sandoval

According to James Sandoval, Founder and CEO of Measure Match: “Being an entrepreneur
means diving headlong into a [likely very risky] venture of your own making, working hard, long
hours, often alone, to carve out a path to success and never, ever giving up.”

Mike Kim

Mike Kim, Co-founder and COO of KPOP Foods, shares what entrepreneurship is really all
about. “Entrepreneurship is not for the faint hearted. I am a US Army veteran. I have been in
combat and I have endured many difficult situations. However, I can honestly say starting a
company has been just as challenging, albeit in different ways.

“While no one’s life may be in imminent danger, the battles you face on your entrepreneurial
journey can last years with no repose. Creating a successful business requires massive amounts
of action, perseverance, and conviction. If you understand this and choose to proceed, you’ll
find the experience rich in rewards.”

https://www.oberlo.com/blog/what-is-entrepreneurship

Why Entrepreneurship Is Important to the Economy?

Entrepreneurship is important for a number of reasons, from promoting social change to

driving innovation. Entrepreneurs are frequently thought of as national assets to be cultivated,
motivated, and remunerated to the greatest possible extent. In fact, some of the most
developed nations such as the United States are world leaders due to their forward-thinking
innovation, research, and entrepreneurial individuals.

Great entrepreneurs have the ability to change the way we live and work, on local and national
bases. If successful, their innovations may improve standards of living, and in addition to
creating wealth with entrepreneurial ventures, they also create jobs and contribute to a
growing economy. The importance of entrepreneurship is not to be understated.
 1. Entrepreneurs Spur Economic Growth

New products and services created by entrepreneurs can produce a cascading effect, where
they stimulate related businesses or sectors that need to support the new venture, furthering
economic development.

2. Entrepreneurs Add to National Income

Entrepreneurial ventures help generate new wealth. Existing businesses may remain confined
to existing markets and may hit a limit in terms of income. New and improved products,
services, or technology from entrepreneurs enable new markets to be developed and new
wealth to be created.

Additionally, increased employment and higher earnings contribute to better national income
in the form of higher tax revenue and higher government spending. This revenue can be used
by the government to invest in other struggling sectors and human capital. Although it may
make a few existing players redundant, the government can soften the blow by redirecting
surplus wealth to retrain workers.

3. Entrepreneurs Create Social Change

Through offering unique goods and services, entrepreneurs break away from tradition and
reduce dependence on obsolete systems and technologies. This can result in an improved
quality of life, improved morale, and greater economic freedom.

4. Community Development

Entrepreneurs regularly nurture ventures by other like-minded individuals. They also invest in
community projects and provide financial support to local charities. This enables further
development beyond their own ventures.

Is All Entrepreneurship Good?

Are there any drawbacks to cultivating entrepreneurs and entrepreneurship? Is there a limit to
the number of entrepreneurs a society can hold?

Assistant Professor of Business at Columbia Business School Tania Babina, in a report written
alongside Assistant Professors Wenting Ma and Christian Moser, Associate Professor Paige
Ouimet, and Assistant Director of the Board of Governors of the Federal Reserve System
Rebecca Zarutskie, found that "employees at young firms receive lower earnings as compared
to employees at older firms."6
Italy may provide an example of a place where high levels of self-employment have proved to
be inefficient for economic development. Research has shown that Italy has experienced large
negative impacts on the growth of its economy because of self-employment.7 There may be
truth in the old saying, "too many chefs and not enough cooks spoil the soup."

The Role of Government

Regulation plays a crucial role in nurturing entrepreneurship. Unregulated entrepreneurship

may lead to unwanted social outcomes, including unfair market practices, pervasive corruption,
and criminal activity.

Findings from the United Nations University also indicate the possible implications of "over-
nurturing" entrepreneurship. European economist Wim Naudé argues that "while
entrepreneurship may raise economic growth and material welfare, it may not always result in
improvements in non-material welfare (or happiness). Promotion of happiness is increasingly
seen as an essential goal."8

Paradoxically, a significantly high number of entrepreneurs may lead to fierce competition and
loss of career choices for individuals. With too many entrepreneurs, levels of aspirations usually
rise. Owing to the variability of success in entrepreneurial ventures, the scenario of having too
many entrepreneurs may also lead to income inequality, making citizens unhappier.8

The Bottom Line

The relationship between entrepreneurship and economic development is important to

understand for policymakers and business owners. Understanding the benefits and drawbacks
of entrepreneurship allows a balanced approach to nurturing entrepreneurship to be taken,
which can result in a positive economic and societal impact.

https://www.investopedia.com/articles/personal-finance/101414/why-entrepreneurs-are-
important-economy.asp#:~:text=Key%20Takeaways,new%20markets%20to%20be
%20developed.

The 9 Different Types of Entrepreneurship

Small business entrepreneurship

A majority of businesses are small businesses. People interested in small business

entrepreneurship are most likely to make a profit that supports their family and a modest
lifestyle. They aren't seeking large-scale profits or venture capital funding. Small business
entrepreneurship is often when a person owns and runs their own business. They typically hire
local employees and family members. Local grocery stores, hairdressers, small boutiques,
consultants and plumbers are a part of this category of entrepreneurship.

Large company entrepreneurship

Large company entrepreneurship is when a company has a finite amount of life cycles. This type
of entrepreneurship is for an advanced professional who knows how to sustain innovation.
They are often a part of a large team of C-level executives. Large companies often create new
services and products based on consumer preferences to meet market demand. Small business
entrepreneurship can turn into large company entrepreneurship when the company rapidly
grows. This can also happen when a large company acquires them. Companies such as
Microsoft, Google and Disney are examples of this kind of entrepreneurship.

Scalable startup entrepreneurship

This kind of entrepreneurship is when entrepreneurs believe that their company can change
the world. They often receive funding from venture capitalists and hire specialized employees.
Scalable startups look for things that are missing in the market and create solutions for them.
Many of these types of businesses start in Silicon Valley and are technology-focused. They seek
rapid expansion and big profit returns. Examples of scalable startups are Facebook, Instagram
and Uber.

Social entrepreneurship

An entrepreneur who wants to solve social problems with their products and services is in this
category of entrepreneurship. Their main goal is to make the world a better place. They don't
work to make big profits or wealth. Instead, these kinds of entrepreneurs tend to start
nonprofits or companies that dedicate themselves to working toward social good.

Innovative entrepreneurship

Innovative entrepreneurs are people who are constantly coming up with new ideas and
inventions. They take these ideas and turn them into business ventures. They often aim to
change the way people live for the better. Innovators tend to be very motivated and passionate
people. They look for ways to make their products and services stand out from other things on
the market. People like Steve Jobs and Bill Gates are examples of innovative entrepreneurs.

Hustler entrepreneurship

People who are willing to work hard and put in constant effort are considered hustler
entrepreneurs. They often start small and work toward growing a bigger business with hard
work rather than capital. Their aspirations are what motivates them, and they are willing to do
what it takes to achieve their goals. They do not give up easily and are willing to experience
challenges to get what they want. For example, someone who is a hustler is willing to cold call
many people in order to make one sale.

Imitator entrepreneurship

Imitators are entrepreneurs who use others' business ideas as inspiration but work to improve
them. They look to make certain products and services better and more profitable. An imitator
is a combination between an innovator and a hustler. They are willing to think of new ideas and
work hard, yet they start by copying others. People who are imitators have a lot of self-
confidence and determination. They can learn from others' mistakes when making their own
business.

Researcher entrepreneurship

Researchers take their time when starting their own business. They want to do as much
research as possible before offering a product or service. They believe that with the right
preparation and information, they have a higher chance of being successful. A researcher
makes sure they understand every aspect of their business and have an in-depth understanding
of what they are doing. They tend to rely on facts, data and logic rather than their intuition.
Detailed business plans are important to them and minimize their chances of failure.

Buyer entrepreneurship

A buyer is a type of entrepreneur who uses their wealth to fuel their business ventures. Their
specialty is to use their fortunes to buy businesses that they think will be successful. They
identify promising businesses and look to acquire them. Then, they make any management or
structural changes they feel are necessary. Their goal is to grow the businesses they acquire and
expand their profits. This kind of entrepreneurship is less risky because they are purchasing
already well-established companies.

https://www.indeed.com/career-advice/career-development/types-of-entrepreneurship

9 traits of successful entrepreneurs you should develop

Motivation

Hard-working business owners are incredibly motivated to succeed. Adopting this mindset—
and being able to demonstrate your motivation to an employer—is crucial, says Karen Litzinger,
a career coach in Pittsburgh. “You need to bring enthusiasm to everything you do at your job,”
she says.
Fortunately, showing you’re highly motivated is simple: “You have to show up to work every
day with a positive attitude,” Plutz says. “Employers want to see you’re passionate.”

Creativity

No matter what industry you’re in, employers want workers with out-of-the-box ideas. “They
want employees to be able to not only carry out assignments, but also come up with better
ways of doing things,” Litzinger says.

That’s why it’s important to be creative—to always be thinking of new ways you can improve
your company’s workflow, productivity, and bottom line.

Persuasiveness

Persuasiveness can make you a better negotiator, which gives you an edge when going after a
plum assignment, raise, or promotion, says career coach Phyllis Mufson.

“There are times when you are going to need to convince a client, a co-worker, or your boss to
take certain actions, so you need to be persuasive” when presenting your ideas, Litzinger says.

Vision

Successful entrepreneurs always keep one eye on the big picture, and this ability can make you
a better employee. “Vision is about strategic planning,” Litzinger says.

Can you see what direction the industry is going? Can you identify challenges for your
company? Can you tackle your day-to-day job responsibilities, while staying focused on long-
term goals and initiatives?

Versatility

You have to be able to adapt to changes in the workforce. “You may be hired for a specific set
of skills, but it’s important to be able to shift as needed,” Litzinger says.

You want to be someone that your boss can go to in a pinch, so be prepared to tackle work
that’s outside your job description. It’s also important to be an early adopter of new technology
and keep your skills current.

Risk tolerance

“Every employer wants to grow their business, which often involves risk and change,” says
Litzinger. Translation: Don’t be afraid to take risks when pursuing new clients, for example, or
testing a new product. (One caveat: Make sure you have your boss’ buy-in.)
Flexibility

Like an entrepreneur, you have to be able to adapt to change and solve problems as they arise,
Mufson says. A good team player can shift their priorities to help out whenever the team needs
assistance. Thus, flexibility means being receptive to other people’s needs, opinions, and ideas
and being open-minded to feedback from your manager.

Decisiveness

Do you exercise sound judgment under pressure? When you’re an entrepreneur, you don’t
have room to procrastinate—and the same is true for employees. “You have to be able to take
action when needed,” Litzinger explains. You must know how to prioritize tasks and make
decisions quickly. (It helps to be organized.)

Collaboration

Savvy entrepreneurs are not only brilliant leaders, but also great collaborators, Plutz says, so
you have to be an effective team player. Unsurprising, 86.3% of hiring managers seek job
candidates who demonstrate strong teamwork skills, according to the National Association of
Colleges and Employers Job Outlook 2020 survey.

Ultimately, using entrepreneurial skills at work entails adjusting to other people’s work styles,
avoiding office politics, celebrating your peers’ successes, meeting your deadlines, and putting
your company’s goals first.

https://www.monster.com/career-advice/article/entrepreneur-traits