An entrepreneur is an individual who creates a new business, bearing most of the risks and enjoying most of the rewards. The process of setting up a business is known as entrepreneurship. The entrepreneur is commonly seen as an innovator, a source of new ideas, goods, services, and business/or procedures.

Entrepreneurs play a key role in any economy, using the skills and initiative necessary to anticipate needs and bring good new ideas to market. Entrepreneurship that proves to be successful in taking on the risks of creating a startup is rewarded with profits, fame, and continued growth opportunities. Entrepreneurship that fails results in losses and less prevalence in the markets for those involved.

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KEY TAKEAWAYS

• A person who undertakes the risk of starting a new business venture is called an entrepreneur.

• An entrepreneur creates a firm to realize their idea, known as entrepreneurship, which aggregates capital and labor in order to produce goods or services for profit.

• Entrepreneurship is highly risky but also can be highly rewarding, as it serves to generate economic wealth, growth, and innovation.

• Ensuring funding is key for entrepreneurs: Financing resources include SBA loans and crowdfunding.

• The way entrepreneurs file and pay taxes will depend on how the business is set up in terms of structure.            (Hayes, Entrepreneur: What it means to be one and how to get started 2022)

 

References

Hayes, A. (2022) Entrepreneur: What it means to be one and how to get started, Investopedia. Investopedia. Available at: https://www.investopedia.com/terms/e/entrepreneur.asp (Accessed: February 19, 2023).

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