The term “entrepreneur” had its formal genesis around 1875-80; < French: literally, one who undertakes (some task), equivalent to entrepren(dre) to undertake. It was coined by the French economist Jean-Baptiste Say and is usually translated as “adventurer”. Say stated that entrepreneurs “sought out inefficient uses of resources and capital and moved them into more productive, higher yield areas.” Say did not just spout off theoretical economic maxims as he walked the walk because he himself was a cotton manufacturer.
Further research into the terms usage shows that it was based originally as a person who was “manager or promoter of a theatrical production”. One can only image being a promoter of theatre in the early 17th Century had its share of risks not only financial but perhaps your may meet with the ire of King Charles X. That was in 1828. Later in 1852 it generally was accepted as a descriptor for a “business manager”.
Dictionary.com defines it as “a person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.” The key components being some sort of activity and one have risk.
Three Areas of Entrepreneurship
I personally believe there are three areas of entrepreneurship. One, is a business which is primarily an activity for profit. Two, is that of social entrepreneur in that you are filling a void not being satisfied by government, effectively managed by the distribution of our taxes or unsatisfied by the private sector. Three (and this one is likely considered to be the most controversial) being a person who engages to make themselves into something better. That is, one who is fully invested in “YOU, INC.” You are the product, you are a concept that requires development to produce something significant. It is not an avocation like skiing, general fitness or some other hobby. It is something much more intense. It is you as a “creator”. Think of Grandma Moses. In fact, many artists fit more easily into this category. However, many activities can fit into one or more of the above categories and in some cases – all three.
In brief, the entrepreneur is the person with an idea, adds resources, frequently capital but many times there is more than just money involved, in order to provide a service or product to someone (the customer) and thus an enterprise is born. They find a need and fill it. But they must solve the problem “profitably”, that is, they must complete their task before they run out of resources. It matters not that you are a business or a charity or an artist. If you cannot sustain yourself you will fail. Some will do so sooner than others but that is the risk.
The more snobbish may say a person opening up yet another pizza joint is not engaged in entrepreneurship. They ask “where is the innovation?”. Perhaps it was an area that was under serviced? Perhaps they are offering a better price, location, value, experience? Is Starbucks so different from any other coffee shop? Of course. Is Airbnb different from other providers of accommodations? I return to the original definition. Some reallocation of resources to perceived greener pastures. Will they be right, will they succeed? Who knows?
This is not a job. An entrepreneur may do a job within the enterprise like CEO, head of technology, etc. but in and of itself it is very different. They are the artist. They create. Painting or sculpture is how they do it. The process is ongoing, fluid, ever changing and with many challenges. Military Strategist and US Air Force Colonel John Boyd created the OODA loop – observe, orient, decide and act, which also made him one of the best air combat fighters of his time. That is what entrepreneurs do.
Entrepreneurship is a Verb
Seth Godin says that entrepreneurship is a verb, that is, you are acting in a prescribed way, specifically 1) you make decisions, 2) you invest in activities and assets that are not a sure thing (the risk, I suppose), 3) you persuade others to support a mission that is not a sure thing and 4) they embrace the doing of things that might not work (again, risk but they are working on the potential solution (failing quickly in many cases). By doing the above, they are controlling the risk. They define, invest, build, improve and then report. They have many skills and they include: passion, independent thinking, optimism, self-confidence, resourceful, problem solvers, tenacity, vision, focus, but most of all they are action oriented. They seek and solve.
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