Entrepreneur is a word that has been taken from French and refers to an individual that operates and undertakes a new venture together with assuming accountability tasks. Another common definition sees the job he/she does as an act of selling and promoting a new or existent product into an existent or new market, with the purpose of gaining profit.
The term “entrepreneur” itself has been defined in numerous ways. Some types of such practitioners developed as time passed and definitions have been given:
- The Risk Bearer – Richard Cantillon defined the entrepreneur as being an individual that purchases factors of production at a given price with the purpose of implementing them in existent products that will be sold at a later date at an unknown price. Because of this the entrepreneur has been characterized as a risk bearer and several successful individuals that practiced the job have taken risks that paid of while others ended up bankrupt.
- The Organizer - Jean–Baptiste Say eventually developed the concept of entrepreneur even further. He considered it to be a person that combines one’s land, the labor of another and someone else’s money. The ending result should be a product.
- The innovator – In 1934, Joseph A. Schumpeter, also considered the entrepreneur as being an innovator. He believed that economic development is based on such individuals bringing in new, innovating ideas. He also defined the innovator as being the person that uses inventions to create new combinations.
- Approach - Mark Casson considers defining the entrepreneur as a difficult task and approached the subject from two different points of views: functional and indicative. The Functional approach defines the entrepreneur as being what he does while the Indicative approach describes the entrepreneur in connections with legal status, relationships, social position and other factors.
- Uncertainty – According to Frank Knight, an entrepreneur needs to have uncertainty at first. Without it losses wouldn’t be made and the fact that risk is calculated and uncertainty is not leads to his definition in which the individual is willing to put his capital and career in uncertain ventures.
- Leader – Many researchers that live today want to add to the definition of the entrepreneur leadership, management skills and team building. Not all specialists agree on this.