The entrepreneurial journey is as diverse as the individuals who embark on it, each driven by the promise of transforming an idea into a thriving enterprise. At its heart, an entrepreneur is someone who organizes, manages, and assumes the risks of a business or venture, acting as the driving force behind innovation and economic growth. This concept of entrepreneurship, extending far beyond mere business creation, is a testament to human creativity and determination.
Historically, the term "entrepreneur" has evolved significantly. Originally applied to individuals undertaking any significant project or activity, it has now come to represent a specific breed of businessperson: one willing to take on greater risks and innovate beyond the confines of existing enterprises. Entrepreneurs are heralded not only for their capacity to generate economic value but also for their visionary approach to identifying and grasping new opportunities. They stand at the crossroads of innovation and commerce, embodying the spirit of exploration and the courage to venture into the unknown (Merriam-Webster).
In the modern economic landscape, entrepreneurship is recognized as a critical driver of growth, competition, and societal advancement. Entrepreneurs challenge the status quo, push conventional boundaries, and, through their ventures, contribute to job creation and the overall dynamism of the global economy. Their work, characterized by a relentless pursuit of new ideas, goods, services, and business processes, enriches communities and nations alike.
As we dive into the essence of what it means to be an entrepreneur, it becomes clear that this journey is about more than just starting a business. It's about embodying a mindset that embraces challenges, welcomes innovation, and tirelessly seeks to create value in fresh and impactful ways.
The Buzzword Breakdown: Entrepreneur
The word “entrepreneur” comes from the French verb “entreprendre” meaning “to undertake” though the official definition has never been completely agreed upon. From economists studying various markets, to banks determining loan parameters, and even the U.S. Small Business Administration providing ample resources to entrepreneurs without actually defining “entrepreneurs,” the term is often up to personal interpretation.
To complicate matters more, some differentiate entrepreneurs from small business owners with some overlap: entrepreneurs can be business owners, but not all business owners are entrepreneurs. Confusing yet?
Entrepreneurs are often classified by their drive to innovate and quickly scale their business generally with the help of investors, whereas businesses owners are typically seen as smaller-scale and lower-risk, sometimes taking over a business they didn’t start themselves. However, these parameters are subjective, as there can be overlap or transition from a small business into a larger corporation, according to Forbes. Whether you consider yourself an entrepreneur or small business owner (or both!), you’re welcome here at L2Business.
So, What Actually is an Entrepreneur?
Entrepreneur Definition
The History of "Entrepreneur"
By dictionary definitions, an entrepreneur is simply someone who owns, organizes, and operates a business bearing the (financial) risks of the business. However, the connotation of an entrepreneur is what makes creating a formal definition difficult. The widely assumed first usage of the word came in the 18th century from the King of Prussia to his generals instructing them how to conduct business. The 19th century evolved the term to refer to “go-between” or people who conducted any activity, not just business, eventually leading to the commonly known term “go-getter,” a typical characteristic trait expected of entrepreneurs.
The U.S. Economic Development Administration, states entrepreneurs start their own business and “catalyze growth, create jobs, and increase U.S. competitiveness.” The Global Entrepreneurship Monitor defines an entrepreneur as one who recognizes an opportunity then moves into the ownership and management of the subsequent business.
Our Definition:
Looking at the commonalities of all these explanations, we can derive a cohesive understanding:
Keep It Simple: It's Like a House Renovation
Imagine you're planning to renovate your home. You have a vision of what you want it to look like, but to get there, you'll need to manage a budget, hire the right people, and perhaps most importantly, be prepared to handle unexpected issues like delays or budget overruns. This scenario is similar to what entrepreneurs face when they start a business.
Just as you would in a renovation, entrepreneurs start with an idea—a vision of something they want to create, either a new product, service, or a solution to a common problem. They map out a plan, estimate costs, and start gathering the resources needed. Like unexpected structural issues in a renovation that could blow your budget, entrepreneurs often encounter challenges that require quick thinking and adaptability.
Just as you'd aim for your renovated home to increase in value or provide a return on your investment, entrepreneurs aim to build a business that will grow in value, attract customers, and generate profit. Whether you’re renovating your kitchen to be more efficient (improving an existing product), adding a family room and bathroom (creating a new product), or replacing the electrical work to support additional plugged in devices (solving a problem), the end value will be greater than what you started with, and as anyone who has done a home renovation knows, once one project gets started, something else is likely to need updating, too, further increasing your asset’s value.
Business Case Studies
To exemplify the entrepreneurial spirit and tangible actions, let’s dive behind the scenes of three successful small business ventures to the entrepreneurs who started it all.
Spanx by Sara Blakely - An Upgrade to the Pantyhose
Business Case Study No. 1
Sara Blakely, a door-to-door fax machine saleswoman, discovered the problem she would solve while struggling with the strict company dress code. Required to wear pantyhose, Blakely appreciated the top compression, but loathed the seams that showed through her pants and open-toed shoes. With no industry experience and just her own savings, Blakely set out to develop a seamless, footless shapewear, using herself as a model for the prototype in meetings with potential buyers and stores who would carry her product. Since starting in 2000, Blakely’s bootstrapped Spanx has expanded its apparel line and become a billion-dollar business.
Blakely personifies two key aspects of entrepreneurship: solving a problem and having an invested passion. Using her own experiences, Blakely saw a need for a new clothing option, and passionately pursued it not only to solve her own problem, but that of countless other wearers. Her direct sales approach and hands-on development of the product underscore the importance of passion and personal investment in entrepreneurship.
“I did not have the most experience in the industry or the most money, but I cared the most,” said Blakely, showing that passion in entrepreneurship can make all the difference (Forbes).
Gymshark by Ben Francis - More Muscles Need Better Shirts
Business Case Study No. 2
Gymshark co-founder Ben Francis embodies the spirit of innovation and adaptability. Active in his youth, Francis joined a gym at age 17 where his passion for fitness turned into an obsession, and that obsession fueled his determination and creativity in developing the Gymshark brand we know today. Initially, Gymshark started as a supplement distributor to surpass his $8/hour Pizza Hut job, but Francis soon realized he was facing a new problem. In an effort to attest the supplements’ results, Francis searched for workout clothing that highlighted his muscles but found little success.
That sparked the transition from supplement provider to workout apparel creator. With just a sewing machine and screen printer in his parents’ garage, Francis began developing his new clothing line in 2012, leveraging social influencers to reach his target audience, which has since propelled Francis to become one of the youngest billionaires at the age of 30. On their website, Gymshark remains committed to the foundational values that shaped the company into what it is today: ambition, agility, disruption. With Francis’s open-mindedness and creativity, Gymshark as a brand pivoted to meet a better need for the same target audience, underscoring the vital need for willing innovation as an entrepreneur.
The Huffington Post by Arianna Huffington - Digital Era News
Business Case Study No. 3
The daughter of a journalist, Arianna (Stasinopoulos) Huffington developed a deep passion for writing, authoring two books before moving to the United States. Throughout various media careers, Arianna kept returning to her love of writing which led to the launch of the Huffington Post in 2005. Originally focused on liberal politics, the online news platform expanded to include a multitude of categories. The Post news differed from mainstream media with “well-sourced, little-known, extremely interesting, and highly entertaining” (Talkroute) articles that attracted a younger demographic due to its ingenuity. Just 6 years later, Arianna sold Huffington Post to AOL for a cool $300 million.
At a time when the internet was on the rise and households were welcoming the first computers into their homes, Arianna saw and seized the opportunity to build a competing, yet equally as reliable and reputable news outlet built solely in the digital medium. Her vision to create a comprehensive news publication that utilized SEO to extend its reach transformed the landscape of digital journalism. In a time where people were either infatuated or petrified with the growing internet and its preconceived implications, Arianna took a risk, went all in, and became a digital trailblazer that opened the door for the plethora of digital media we consume daily. Her willingness to try something new and follow her passion not only makes Arianna a great entrepreneur, but a stellar example of what happens when passion, determination, and forward-thinking combine at once.
Impact on Your Business
Your business will benefit more from an entrepreneurial mindset than the title of “entrepreneur.” While the baseline of being an entrepreneur means creating and running a new business, that doesn’t inherently mean success. It’s the unyielding drive to solve a problem, create something new, innovate, and search out new opportunities that lead to successful entrepreneurship. The characteristics of perseverance, determination, and continuous learning among many others help shape a successful entrepreneur and their venture. The journeys seen in the case studies underscore the significance of solution-oriented thinking, market awareness, and adaptability. By identifying unique market gaps, leveraging personal stories and experiences, and ingenuity, you can drive your business towards substantial growth and impact.
Embracing the Entrepreneurial Spirit
In essence, being an entrepreneur goes far beyond the mere act of starting a business. It involves a dynamic mindset characterized by creativity, resilience, and value creation. Much like the definition of “entrepreneur” has evolved since the 18th century, so has the journey of being an entrepreneur, creating something from nothing, innovating and adapting to the climate around you, and learning from those who came before you. Drawing on the inspiration from Sara Blakely, Ben Francis, and Arianna Huffington, the common thread remains clear: being an entrepreneur is about seizing opportunities and overcoming challenges with unwavering determination. By embodying these principles, you can drive significant growth and impact in your own ventures, regardless of the title you hold.
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About the Author:
Em is the co-founder of L2Business and Director of Communication. With a passion for writing and helping others, "Kill the Jargon" is Em's favorite L2 project. When she's not busy with the business, you can find her yelling at the TV watching her alma mater Texas Tech or any hockey game she can find. If you have any questions, reach out via our contact page or connect on Facebook!
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