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Meaning of entrepreneur shouldn’t be a complex thing to know, because their role play in society explain all.
Are you looking for the meaning of entrepreneur? Or the definition of entrepreneur? If yes, you’re in the right place.
Here are an in-depth meaning and definition of entrepreneur. Not only the meaning of entrepreneur and definition you will find in this article.
It is beyond to type of entrepreneurs, functions and entrepreneur skills.
So the article is an all-in-one article. For I’m ready to share, are you ready to learn?
What is the meaning of entrepreneur?
An entrepreneur is a person who organizes and operates a business venture and assumes much of the associated risk.
A person behind entrepreneurial activities is called entrepreneur.
An entrepreneur is a person who takes a commercial risk of setting up and running a business.
He is a special, organizes person full of a boost of energy and who enthusiastically perceives, easily organizes, shapes, explores and seizes the slight opportunities to innovate an entirely new business brand or recreate an existing one.
Definition of entrepreneur by 8 difference authors
Difference authors with their own definition and view of the entrepreneur.
So let’s take a look at these authors below’s views and definition of entrepreneur.
1. Brocklaw (1987) view entrepreneur as a man behind entrepreneurial activities or innovate a project, provide funds, acquires land or business premises, employ labor, provide equipment (machine) and raw material, as well as plan and co-ordinates production and products distribution of the new firm.
2. Eze (1999) defines an entrepreneur as a person who organizes, manage and assumes the risk of business or enterprise.
He further argues, an entrepreneur is dedicated to making the business successful and is willing to risk money and reputation to make an idea work.
An entrepreneur works and puts their talent to the line while seeking the satisfaction that comes from being their own boss and being responsible for their own success.
An entrepreneur is an individual or a group of individuals who risky financial, materials and human resources with a view to create a new business opportunity or recreate an existing firm in a new way.
3. Olson (1987) an entrepreneur is a risk-taking innovative person who establishes and manages a business for the purpose of profits and growths.
4. Oche and oteikwu (2011) clearly state the meaning of entrepreneur, as an individual who conceives a business idea, evaluate the idea as well as organizes both human resources and material resources to run the business enterprise.
5. Schumper (1934) entrepreneur is an innovative modern industrial business leader who perceives business opportunities and takes advantage of the scarce resources to use them.
6. Kesavan and Ulfert (1997) entrepreneur are unique people who develop better ideas and successfully commercialize them.
7. Daodu (1997) defines an entrepreneur as a person who organizes and manages a commercial undertaking with a view to making profits as a return on investment.
He is an innovative person, a path-breaker and a pacesetter of economic and industrial growth.
8. Oshagbemi (1983) view the meaning of entrepreneur as an originator of profitable ideas. The entrepreneur is fiscally characterized by such unique features as direction, supervision, control, and risk-taking.
It is the entrepreneur’s affinity for risk which distinguishes him from the manager.
Functions of entrepreneurs
The entrepreneur performs some essential functions as the result of running his/her business.
Here are some of the functions below:
1. Identifying opportunities: The primary function of an entrepreneur is the identification of an investment opportunity.
This consist of understanding the needs and the want of the potential consumers who are not being fulfilled and which the entrepreneur can satisfy with certain goods and services.
The needs and wants of the people constitute an investment opportunity only when the potential demand arising therefrom is sufficiently large enough, and is not being effectively served by competitors.
2. Risk bearing: Risk bearing has been traditionally associated with the entrepreneur.
There are various types of risks in business, such as that of fire, accidents, bad debt, theft, environmental hazards, social unrest, high competition, etc.
These risks can be minimized by taking insurance policies against them.
3. Innovation: One of the most important functions of an entrepreneur is innovation.
This involves creative response to an investment opportunity such as developing a new product, new technology or the modification of existing ones to need better.
4. Decision making: One of the vital functions of an entrepreneur is decision making on investment opportunities to exploit.
He may use a number of criteria to evaluate the alternative projects in taking a decision.
5. Business directorship: Not only does the entrepreneur establish the business enterprise, he/she also operates it in order to achieve the goals specified.
He/she does this by determining the tasks necessary to achieve the goals, allocating, productive resources for the performance of the various tasks, coordinating necessary activities, motivating personnel, providing leadership and direction for the business enterprise.
And they’re more other fun things of entrepreneurs. From the definitions above, it easily to know the functions of entrepreneurs.
The successful practice of entrepreneurship requires that an entrepreneur should possess some abilities and traits.
The major 6 entrepreneur skills are:
- Managerial skills
- Communication skills
- Problem-solving skills
- Technical skills
- Human relations and
- Conceptual skills
These skills above are must-have for any entrepreneur who aims to be successful.
Why some people become entrepreneur?
Eze (1999) ascribes the reason why people become an entrepreneur as following:
- The desire for a high income
- The desire for a more satisfying career
- The desire to run with a new idea or concept
- The desire to be self-directed
- They desire the prestige that comes from being a business owner.
- The desire to build long-term wealth
- The desire to make a contribution to human or to a specific cause.
Those are the most common reasons people become an entrepreneur.
Why you should become an entrepreneur
I have no many things to say here because you have read the reasons people become an entrepreneur and it also applies to you too.
If you work in a company, do you know that your boss is paying you 0.1% to 0.3% of the company income?
If your boss(s) is paying you N100,000, his earning 99.7% to 99.9% of that amount.
An employee is a bondage, so you need to get out of this bondage and become more meaningful and influential to your world. Entrepreneur contributes their quota to the development of the economy.
Type of entrepreneur
We write a blog post about the type of entrepreneur, you can read it here. The blog post explains the in-depth meaning of the type of entrepreneurs.
I hope you have learned something from this piece of content? Don’t go yet, there is a take away for you below.
Brockhaus (1987) defines an entrepreneur as anyone who starts a business.
Otaha (2010) argues that this definition is shallow and misleading because it only provides a restricted knowledge of the entrepreneur and would only lead many people to the erroneous belief that anybody who owns any type of business is automatically an entrepreneur.
Suffice it to say that individuals who litter the streets with one form of business activity or the other aren’t necessarily entrepreneurs, especially those dealing with buy and selling of smuggled goods as well as those dealing in unethical activities.
From definitions above, Now the question is, between Brodehaus and Otaha, who is right?
Or what is your definition of entrepreneur? or how do you view the meaning of entrepreneur?
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