Redefining Entrepreneurship: A Look At The Current Model

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“It’s your right to be uncommon if you can. You seek opportunity to compete. You desire to take the calculated risk, to dream, to build, yes, even to fail, and to succeed.” -Ewing Marion Kauffman

What is an entrepreneur? Why does entrepreneurship matter? 

According to Investopedia an entrepreneur is “an individual who, rather than working as an employee, founds and runs a small business, assuming all the risks and rewards of the venture.” A simple web search indicates that an entrepreneur is “a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.” Finally, the Kauffman Foundation defines entrepreneurs as “people who turn ideas into reality, charging directly into the headwinds to create something of value where there was no value before.” 

These definitions have several common threads, with room for additional thoughts to be added to the concept.

Consider these thoughts. 

An entrepreneur is someone who: 

1.     Takes some sort of calculated risk. Entrepreneurs are not pursuing an idea that is a “sure thing”; failure of some sort is on the table. The risks involved can include a novel product or service or an aggressive business model. Entrepreneurs face financial risks and have their own money as some of the first invested to launch their businesses. Entrepreneurs may also face job insecurity. Exploring entrepreneurship often involves leaving long and stable careers behind to pursue the uncertain.

2.     Has expertise that gives them a competitive advantage in their target market. This knowledge, experience, and insight allows only this particular entrepreneur to bring forth this business in a specific market.

3.     Has created a product or service that a business can be built around. An entrepreneur develops a product or service that’s driven by market demand and customer need. Even if no sales have been made, an entrepreneur has identified a customer base that will pay for their product or service.

4.     Is driven by passion to bring forth a solution that no one else is currently providing.

We often think of entrepreneurs as individuals operating in the tech space, creating high growth potential businesses that can reach multiple markets with expansive revenue streams. However, anyone with a solid business idea bringing something of value to the market is an entrepreneur. This includes people building highly scalable startups. But it also includes small business owners, including people with zero or few employees. This definition also includes franchise owners. These individuals are creating a business in a specific geographic market in which the business did not exist. This still involves risk, market research, and financial investment.

Why is entrepreneurship important?

Entrepreneurs are economic drivers. They create new businesses, jobs, and opportunity for themselves and for others. Entrepreneurs are driven by a need to solve real problems facing our society. They often encourage a different way of thinking and doing. The entrepreneurial mindset and problem solving based on a defined need and customer feedback is of value in small and large organizations alike.

 Entrepreneurship matters. It’s time to start rethinking our definition of an entrepreneur.