Entrepreneurs are the creators of new businesses that introduce products, services and technologies to the market. They also create employment, a key driver of economic growth. In a global study conducted by the Centre for Management Development, Canada placed among the best in the world when it comes to the percentage of adults working in entrepreneurial businesses. Entrepreneurs can be found in all industries and at all stages of life — from moms who start a lifestyle blog or invent a new gadget to teenagers who star in their own YouTube shows to retired folks who turn their lifetime of knowledge into coaching or consulting businesses.
Regardless of the type of business, successful entrepreneurs must have a clear vision and a strong sense of purpose. They must also be resilient and have the capacity to accept a certain amount of risk when starting a business. They must also have the skills to manage people, finances and the day-to-day operations of their business. It is important to remember that most new business owners do not make a profit within the first year, so it is critical to plan ahead and be prepared for this. This includes establishing a cash flow budget, making sure that personal and business expenses are kept separate and not using business income to cover personal living costs.
The exact definition of entrepreneurship varies, but most scholars agree that an entrepreneur must have a unique idea that is viable and can be scalable. They must be able to identify a gap in the marketplace and provide a solution that addresses this gap, says Babson University. Entrepreneurs often act as change-makers and advocate for a shift in the way a product or service is normally used. For example, they may notice that the community has limited access to fresh produce and develop a mobile grocery store to address this issue.
An entrepreneur must be able to identify a commercial opportunity and have the means and motivation to seize it. This is what economist Joseph Schumpeter meant when he defined entrepreneurship. He explained that it is the process of creating a good or service that is new or substantially improved in order to seize a market opportunity. This is done through either introducing a new product or a new method of production.
Today, many experts define an entrepreneur as anyone who runs a business independently of others for their own financial gain. Some use a wider definition and include freelancers, contractors and independent workers. However, some academics and experts prefer to narrow the definition by considering only those who own a small business that employs at least one person. This is in line with the theory that entrepreneurs are the backbone of the economy. They are responsible for creating jobs and generating profits that can be reinvested into the economy to support a growing business climate.