UK Accounting Glossary
A self-motivated individual who forms, runs, and takes all the risks of starting a business.
Someone who organises a business venture and assumes the risk for it.
An entrepreneur is someone who attempts to create a new business or startup. Success as an entrepreneur is the leading path to becoming a self-made millionaire, ahead of all other paths (corporate executive, celebrity, etc.) combined. In his book Getting Rich Your Own Way, Brian Tracy says 74% of self-made millionaires are business owners! The serial entrepreneur is an entrepreneur who continually initiates another startup after the previous one is exited or dissolved. The plan of the entrepreneur to cash out of the successful startup is called an exit strategy. When seed capital is limited, as it usually is for the first-time entrepreneur, the company can be bootstrapped, meaning the entrepreneur funds it personally or uses only the cash flow from operations. Seed money given to an entrepreneur to start a new business, especially by relatives, is sometimes called love money. The word entrepreneur can be traced back to the French verb to undertake.
Origin of the word, entrepreneur, is French. It means “one who undertakes” and hence it is used for anyone who undertakes charge of any organization or management of any business and is responsible for the proper functioning of an enterprise.
An entrepreneur decides on starting a business with a view that a consumer need is not sufficiently filled. This is often referred to as an “opportunity niche” in business literature. Not just any entrepreneur can be successful. There are several character traits of a successful entrepreneur.
Successful entrepreneurs must possess a direct control over all happenings of business. Entrepreneurs prefer environments that provide maximum authority and responsibility. Entrepreneurs are very careful when they deal with monetary matters. They always keep a good account of the amount of money they possess and they have invested. They possess the talent to recognize a real bargain.
Entrepreneurs have a tremendous competitive nature. They strongly believe in the thought that “the early bird gets the worm.” They keep sound health so that they can work for long hours. Entrepreneurs have a strong head for business. They constantly think of new ideas and new ways to make a profit or expand their business. Entrepreneurs usually prefer to invest in a solitary business, where they have single control over the business.
Entrepreneurs are extremely professional and they don’t often retire early. They are extremely dedicated to their work. Thus, entrepreneurs who have high energy levels, extreme self-confidence, and long-term goals are often the most successful. They have the ability to solve problems, can take risks and most importantly can learn from their failures.
Magazines such as “Business Week” showcase top-earning entrepreneurs in their annual economic summaries.
Entrepreneurs are creative people who are responsible for many of the greatest ideas of the Information Age.
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This glossary post was last updated: 9th February 2020.