An entrepreneur is a risk taker in the private enterprise system, a person
who seeks a profitable opportunity and takes the necessary risks to set up
and operate a business.
Entrepreneurs differ from small-business owners because one of their major
goals is expansion and growth.
Entrepreneurs combine their ideas and drive with money, employees, and
other resources to create a business that meets a need.
Managers are employees who direct others to reach an organization’s goals
whereas entrepreneurs’ main responsibility is to use the resources of their
organizations to accomplish their goals.
One major trait that differs from managers is the willingness to take on the
risks of starting a new venture.
Classic entrepreneur: a person who sees a business opportunity and sets
aside resources to gain access to that market.
Serial entrepreneur: a person who starts one business, runs it, and then
starts and runs more businesses, one after another.
Social entrepreneur: a person who sees societal problems and uses business
principles to develop new solutions.
People become entrepreneurs for one or more of four major reasons:
o Being Your Own Boss
One of the biggest reasons for becoming an entrepreneur.
Being your own boss means having to make all the important
You are also engaged in most (if not all) of the communication
related to your business (with suppliers, customers etc.).
o Financial Success
Entrepreneurs often believe they have an idea for a better
product and want to be the first to bring it to the market to
reap the financial rewards.
Entrepreneurs believe they won’t achieve their greatest
success if they are working for someone else.
o Job Security
While working for someone your job is never fully safe. Recent
trends to cut costs by downsizing have resulted in many losing
Having your own business doesn’t guarantee job security, but
research has found that most newly created jobs come from
o Quality of Life
Entrepreneurship is a good career option for people who want
to improve their quality of life. Results in independence and some freedom to decide
when, where, and how to work.
Lifestyle entrepreneur: a person who starts a business to
reduce work hours and create a more relaxed lifestyle.
First thing to do when you want to start your own company is to do some
research about the environment where you want to do business.
o See if the economy, for example, is staled or booming, you may find
Four additional factors that support and expand opportunities for
Entrepreneurs market their products abroad and hire
Most Canadian small businesses have international
sales (mostly in the U.S.).
The role of entrepreneurs is growing in most industrialized
countries, in newly industrialized countries, and in the
emerging free-market countries in central and eastern Europe.
Worldwide, +9% of adults are starting or managing a new
Thailand (27%), Peru (26%), Colombia (23%) and
In the past 20 years, more educational opportunities have been
offered for would-be entrepreneurs.
Courses can be taken in university/college about
Many schools offer opportunities to intern with a start
up or to work toward launching a company.
Many other organizations have opened in recent years
to teach entrepreneurship to young people.
o I.e. The Kauffman Center for Entrepreneurial
Students who major in entrepreneurship or take
entrepreneurship courses are 3X more likely to start their own
business or to help someone else to start a business.
Record number of college students are launching their own
businesses – while still in school.
I.e. Ryan Dickerson and the Rylaxer.
o Information Technology
Computer and communications technologies have merged, and
their costs have dropped (helps entrepreneurs compete with
big firms). Information technolofy helps entrepreneurs to work quickly
and efficiently and to provide immediate and helpful customer
Also increases sales and gives businesses a professional
Homepreneurs: entrepreneurs who run home-based
A recent study said that +90% of successful companies now
use at least one social media tool.
Social networking is more useful to small firms because in
smaller organizations, there is more room for innovation
because it requires fewer processes to adopt.
o Demographic and Economic Trends
Two groups that are most likely to start their own businesses
Immigrants to NA
People between the ages of 55 and 64
Older entrepreneurs have access to their retirement funds and
home equity for financing.
Many boomers plan to work after retiring for two reasons:
Just to keep working
The want to add to their income and savings
Demographic trends such as the aging of the population, the
growth of ethic groups, and two-income families lead to new
markets for products and services.
I.e. food that caters to ethic preferences.
Successful entrepreneurs often have parents who were entrepreneurs – or
who had dreams of starting their own business.
Successful entrepreneurs are likely to be:
Especially important traits for successful entrepreneurs are:
Entrepreneurs generally begin with a vision (an overall idea
for how to make their business idea a success).
It is then followed with energy and excitement.
True entrepreneurs can turn situations in which accidental
discoveries are made, into opportunities.
I.e. discovery of penicillin.
o High Energy Level Entrepreneurs work long and hard to make their visions a
Most spend 70 hours a week on their new business
(includes start-up design, marketing, sales, and
This time can affect their other job (if they have one)
and their personal life and thus, they need a high level
of energy if they want to succeed.
o Need to Achieve
Entrepreneurs have a strong desire to do well, which helps
them to enjoy the challenge of reaching difficult goals.
Also promotes a commitment to personal success.
o Self-Confidence and Optimism
Entrepreneurs believe they can succeed, and their self-
confidence and excitement leads to optimism in others.
Entrepreneurs see opportunities where others see danger.
o Tolerance for Failu