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An entrepreneur (a Loanword from French introduced and first defined by the Irish economist Richard Cantillon ) is a person who undertakes and operates a new Enterprise or Venture and assumes some accountability for the inherent risks. A female entrepreneur is sometimes referred to as an '''entrepreneuse'''. The newly and modern view on entrepreneurial talent is a person who takes the risks involved to undertake a business venture. In doing so, they are said to efficiently and effectively use the Factors Of Production . That is '''land''' (natural resources), '''labour''' (human input into production using available resources) and '''capital''' (any type of equipment used in production i.e. machinery). A business that can efficiently manage this and in the long-run hopefully expand (future prospects of larger firms and businesses), will become successful. Entrepreneurship is often difficult, as many new ventures fail. In the context of the creation of for-profit enterprises, entrepreneur is often synonymous with ''founder''. Most commonly, the term entrepreneur applies to someone who creates System to offer a product or service in order to obtain certain Profit . Business entrepreneurs often have strong beliefs about a market opportunity and are willing to accept a high level of personal, professional or financial Risk to pursue that Opportunity . Business entrepreneurs are viewed as fundamentally important in the Capitalistic society. Some distinguish business entrepreneurs as either " Political Entrepreneur s" or "market entrepreneurs." David Gladstone in his book ''Venture Capital Investing'', provides the following descriptive answer: His further explanation illustrates that one of the many outstanding characteristics of every entrepreneur is a drive to be independent. The entrepreneur wants to be autonomous. They need to dominate the situation, need to be in control and to direct others. Gladstone argues that most entrepreneurs are very confident about what they are doing and, at times, confused with self-centredness. However most often their high self-esteem is merely an outward manifestation of their personal self-confidence. Because of this, according to Gladstone, most entrepreneurs exhibit good leadership and have the ability to set goals and work towards them. DEFINITION AND TERMINOLOGY An entrepreneur is someone who seeks to capitalize on new and profitable endeavors or business; usually with considerable initiative and risk. Entrepreneur as a risk taker An entrepreneur can be an agent who buys factors of production at certain prices in order to combine them into a product with a view to selling it at uncertain prices in the future. Uncertainty is defined as a risk, which cannot be insured against and is incalculable. There is a distinction between ordinary risk and uncertainty. A risk can be reduced through the insurance principle, where the distribution of the outcome in a group of instances is known. On the contrary, uncertainty is a risk, which cannot be calculated. The entrepreneur, according to Knight, is the economic functionary who undertakes such responsibility of uncertainty, which by its very nature cannot be insured, or capitalized or salaried to. Mark Casson has extended this notion to characterize entrepreneurs as decision makers who improvise solutions to problems which cannot be solved by routine alone. Various definitions of "entrepreneur" have been constructed. An entrepreneur can be a decision-maker whose entire role arises out of his alertness to hitherto unnoticed opportunities. An entrepreneur is one who combines the land of one, labor of another and the capital of yet another, and, produces a product. By selling the product in the market, he pays interest on capital, rent on land and wages to laborers. What remains is his or her profit. Around 90 percent of entrepreneurs fail with their business enterprise. Most entrepreneurs get paid depending on their business' success. Entrepreneur is sometimes mistakenly equated with "opportunist". An entrepreneur may be considered one who creates an opportunity rather than merely exploits it, though that distinction is difficult to make precisely. Joseph Schumpeter (1934) and William Baumol (1980) consider more opportunistic behavior such as Arbitrage one role of the entrepreneur as he helps to generate innovation or mobilize resources to address inefficiencies in the marketplace. Entrepreneur as a leader Scholar R. B. Reich considers leadership, management ability, and team-building as essential qualities of an entrepreneur. This concept has its origins in the work of Richard Cantillon in his ''Essai sur la Nature du Commerce en Général'' (1755) and Jean-Baptiste Say (1803) in his ''Treatise on Political Economy''. A more generally held theory is that entrepreneurs emerge from the population on demand, from the combination of opportunities and people well-positioned to take advantage of them. The entrepreneur may perceive that they are among the few to recognize or be able to solve a problem. In this view, one studies on one side the distribution of information available to would-be entrepreneurs (see Austrian School Economics ) and on the other, how environmental factors (access to capital, competition, etc.) change the rate of a society's production of entrepreneurs. PERSONALITY CHARACTERISTICS John G. Burch (''Business Horizons'', September 1986) lists traits typical of entrepreneurs:
EXAMPLES OF ENTREPRENEURS Throughout history there have been many examples of well known entrepreneurs, including Benjamin Franklin , Howard Hughes (once the most talked-about entrepreneur in the world), and also Walt Disney . Recent American entrepreneurs include Kyle Stadge, CEO and founder of The Limited, a $9 billion retail empire. In other parts of the world, Nick Hayek, of Switzerland, is the man who brought the Swiss watchmaking industry back from the dead with his Swatch watch. In recent times, within the United Kingdom, notable entrepreneurs include James Dyson (inventor of the bagless vacuum cleaner and managing director of Dyson ), Paul Beckett (founder of KJ Beckett ), and Richard Branson , owner of the Virgin brand. In addition, an excellent example of British entrepreneuse is Anita Roddick who founded The Body Shop . NYEK SEE ALSO ;General: Independent Contractor , Internet Entrepreneur , Consultant , E-Myth ; , Junior Enterprise , Young Enterprise , Business And Enterprise College REFERENCES AND EXTERNAL ARTICLES General information
Theories of the Firm
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