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Entrepreneur: Compendium of definitions and concepts
Definition of entrepreneurThe entrepreneur is a person who, either individual or collective, sets objectives and takes strategic decisions about goals, media, management and control of companies and assumes both commercial and legal responsibility towards third parties. The entrepreneur is the physical or legal person that combines capital and labour with legal capacity and in a professional way with the aim of producing goods and/or services to offer them on the market in order to obtain benefits.
The term generally applies both to the high layers of management - the so-called directors executives - such as Steve Jobs and Bill Gates - as members of the Board of directors or Board of Directors - for example: Sergio Marchionne and Ramon Aboitiz - or to some shareholders (usually "shareholders" or those who possess multiple investments - for example: Warren Buffett and Ricardo clear - and)generally, to the owners of companies of any size.
May suggest that the role of the entrepreneur are three distinct functions: that of owner or capitalist or financial; Manager or administrator and entrepreneur or innovative which assumes risks.
Jean-Baptiste Say suggests in his Traité d' économie politique de 1803 that "it is rare that such entrepreneurs are so poor that they don't own at least part of the capital employed"; "he is the loop of communication between the different kinds of producers, between producers and consumers. He directs the business of the production and is the center of many encounters and relationships; He does gain their knowledge and the ignorance of others, and any accidental advantage of production"; that "the merit of the merchant who achieved through good management make the same capital sufficient to expand a business is precisely analogous to the engineer, which simplifies the machinery or makes it more productive", and note at the same time that "the employer is exposed to all risks, but instead takes advantage of everything that can be favorable".
Concept of entrepreneur in the economy of the 21st century
In the current economy, the concept of entrepreneur appears closely linked to the concept of enterprise, conceived this as a socio-economic reality. The employer customize the performance of the company and is the representative figure which, according to their motivations, objectives consistent with the purposes to get by the company in a time interval. Ultimately, the employer is constituted as the individual or collective body responsible for managing (establish business objectives and timely decision-making to achieve them).
Characteristics of the concept of entrepreneur
Characteristics of businessman functions can be grouped in two:
• Those who consider that the economic role of the entrepreneur is characterized by the assumption of the risk and the prestige of the company.
• The most estimated that the main function is the policy and control of the economic process.
Concept of entrepreneurIn general terms, an entrepreneur (in English: businessman, entrepeneur) is one who is capable of risking something (effort, time and resources) to start and develop a unit of production or provision of services to the satisfaction of certain needs and/or desires existing in society in exchange for a utility or benefit.
However, there are other points of view of experts in matters of business, economics and marketing about what is a businessman and that must be known to respond more specifically to the question: what is the definition of an entrepreneur?
Definition of entrepreneur from different points of view:
• Zoilo Pallares, Diego Romero and Manuel Herrera, authors of the book «do company: A challenge», defined the entrepreneur as "a person, entity or group of persons that independently or associated, by their own free will and individual motivations (such motivations can range from the satisfaction of doing the same things by itself, to achieve some kind of power or social distinction), decides to take a risk in the implementation of a specific economic activity and in which they aspire to succeed".
• According to Simón Andrade, author of the book «Dictionary of Economics», the entrepreneur is "natural or legal person who generally owns a unit of production or service, and as such, this assumes the principal risk of it, being the circumstance that differentiates it from the Executive".
• For Ferrell, Hirt, Adriaensens, flowers and bouquets, authors of the book 'Introduction to business in a changing world', "an entrepreneur is a person who risk their money, time and effort to develop a product or way of doing something innovative".
• Marketing dictionary of Cultural S. a., provides the following definition of an entrepreneur; "The person who has certain possibilities for the development of commercial activity, as for example, vision, leadership, assumption of risk, etc. It is capable of combining various parts necessary to operate a business and make a profit."
• For Ricardo Romero, author of the book «Marketing», "who produce something, exchanged or help, are entrepreneurs".
In synthesis, and based on the previous definitions, I suggest the following definition of an entrepreneur:
Natural or legal person, holder of a unit of production or service, that independently or associated and with their own free will, individual motivation and ability to create, develop and operate a company assumes a risk in the realization of an economic, commercial activity and/or product development or way of doing something innovative to meet a need or desire existing in societyin exchange for a utility or benefit.
Definition of entrepreneurA businessman, in simple terms, is a person who creates or acquires a business or company, and then goes to work on it and make it grow.
In more elaborate terms, an entrepreneur is a person who complies with the following process:
1 Identify an opportunity
First of all an employer has enough vision to identify a business opportunity.
2 It assumes risks
Once identified the business opportunity, informs the employer, investigates and analyzes such opportunity, and, if it considers that such opportunity product business could be profitable, takes the necessary risks and assumes responsibility for its decision.
3 Gather resources
Once you take the decision to start your business, entrepreneur quickly gathers the necessary resources (financial, technological, human, etc.) that allow to start your business.
Then use your creativity to design a unique product that offers a differentiation with respect to the products of its competitors, and that will meet unmet consumer needs.
5 Develops processes
Subsequently, the employer creates processes or systems that efficiently operate your business. Processes or systems about how it will acquire their inputs, as it will produce their products, how will distribute them to the public, as it will promote them, etc.
Once you have started your business, the employer exercises its leadership to induce and motivate their employees to achieve the goals of your company.
7 He contributes to the community
And, finally, the employer contributes to the community, either providing a good or service useful to consumers, stimulating the economy or generating employment, creating new jobs.
Concept of entrepreneurThe word entrepreneur designates who leads and directs a company, Word originated in the latin "apprehendere", which involves the realization of a complex business.
In the middle ages, the entrepreneur or "entrepreneur" was in France that ran a play, taking charge of the risks.
After the Industrial Revolution, the owners of the factories were bourgeois, individual entrepreneurs who drove the new production units, inviertian and managed gains.
The current employer is the soul of the enterprise, institution destined to the production or sale of goods or services; is which sees it, manages it, according to a draft Guide and in view of an end, which changes its course according to the contingencies that they are presenting, which risks, which dreams, which struggle to overcome competition, to modernize, which invests, and which at the end receive their benefits or supports its failurebeing responsible for any third party, for any damages that may arise during business activity. This can be a single person or a business group, which have capacity in fact and law and they are the face visible and representative business.
In addition to these entrepreneurs that are actively involved in the company, and who make a profession of their work, there may be other partners who only contribute capital and do not collaborate in the management and administration. In addition there may be other professional entrepreneurs who are not owners of the company but who occupy managerial positions in it, and that risk not your heritage or the company in his performance, but his job title.