Entrepreneurs are the people who bring business ideas to life. They launch businesses and provide jobs by making products and services that consumers want today. They also make profits from those efforts. Creating a company is risky, and it requires dedication and perseverance. Some entrepreneurs work long hours to see their vision come to fruition. Entrepreneurs are often young, highly motivated risk-takers who sacrifice a lot to reach their goals. They are a driving force behind the economy.
The word entrepreneur is taken from the French verb entreprendre, meaning “to undertake.” The term was first used in an academic context by Richard Cantillon in 1730 to describe someone who took financial risk in order to start a business. Two notable twentieth-century economists, Joseph Schumpeter and Israel Kirzner, further refined the academic understanding of entrepreneurship. In their writings, both emphasized the role of entrepreneurs as innovators who implement change in an economy. The introduction of new goods and services can disrupt an industry, causing existing goods to become obsolete or disappear from the market. The compact disc’s introduction, for example, caused the vinyl record to become obsolete.
Entrepreneurs may operate a variety of businesses, such as restaurants, retail stores and manufacturing plants. In addition, entrepreneurs can also be found in the technology sector, where they launch companies such as Apple and Google. No matter the industry, there are certain characteristics that all entrepreneurs share. They are hardworking and innovative, able to identify future trends and needs. They have a desire to be self-directed and do not thrive in traditional employment situations, where they are told what to do and when. They also tend to be decisive and quick to act.
Another important trait of an entrepreneur is that they are creative and see opportunities for growth in every situation. They can turn a simple idea into a successful business by using their creativity and focusing on a niche market. This is why some entrepreneurs are known as innovators, as they create new products or services that can change an entire industry.
Many entrepreneurs find themselves attracted to certain types of industries, such as those that provide a high level of customer service or are technologically-based. They have a natural sense of what the public wants and how to meet those needs, so they are more likely to succeed in these areas than they would be in other industries.
In some cases, an entrepreneur will begin a business by taking over an established firm or division of an existing company. This type of entrepreneurship is referred to as “corporate entrepreneurship.” This form of entrepreneurship is less risky than the creation of an entirely new company, but it can still involve a significant level of risk for the entrepreneur. This type of entrepreneurship can be more difficult to manage, and it is sometimes hard for the original owner to retain control. Nevertheless, this type of entrepreneurship can be very profitable for the entrepreneur, since it allows them to keep more of the profits from their business.