Defining an Entrepreneur
Recently I received an email from a reader who was concerned that myself, this site, and the general population had become too liberal in their definition of what an entrepreneur is, and he was “totally offended”.
In his view an entrepreneur was somebody who “started with an idea and that’s it”. They “raise their own capital, develop the entire process, hit the million dollar mark and sustian it”. And he felt that only at that point do you truly “earn the term and the use of the title Entrepreneur”.
Interesting.
Webster’s Definition
Entrepreneur: One who organizes, manages, and assumes the risks of a business or enterprise
My Thoughts
I have to say that I agree a little more with the definition as defined by Webster, than I do the reader.
Putting monetary and somewhat elitist standards on the term, discounts those who are starting their own business, raising their own capital, and assuming the risk of business operations as something lower than a “true entrepreneur”, if certain standards aren’t met.
Jason O’Neill may have something to say about that.
Don’t get me wrong, I’m not challenging the reader’s measures for success. For some success may be just taking the first step with your business. For others it may be hitting the million dollar sales mark and sustaining it. It’s your goals, and your measures, and I’m not here to judge that.
What I can’t support is the idea that business owners, those who take the risk to startup, and those who assume the inherent business risk day in and day out, are not true entrepreneurs because they don’t live up to someone else’s standards.
Kids who start a lemonade stand are just as entrepreneurial as the hot shot startups, and I’m not going to diminish their accomplishments or tell them they can’t use the title of Entrepreneur.
To do so would be limiting, and to do so with anyone in business for themselves would be limiting as well.
The meaning of the word entrepreneur may be debatable, but nowhere in a definition will you find the phrase “limited to _____”, or the term “contingent upon”…and if you do, ingnore that definition.
So I’m going to keep on using the term as I always have on this site, and to describe you all. Of course all of this is just my opinion, and I could be way off base here. I welcome your thoughts on the matter.
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I’d agree 100% with your post here, and the simple definition of entrepreneur. Whether you’re 6 years old or 60, you can start a business and become an entrepreneur.
So I’m with you, keep using the term “entrepreneur.” It’s who we all are!
–Allison
http://www.GreatSmallBusinessAdvice.com
Amen Matt! The wonderful thing about Entrepreneurship is it can be entirely what you make of it. You can choose to build up your own webdesign busness to a point where you are able to comfortably live a middle class lifestyle, or you can choose to build a monopolistic giant corporation making billions of dollars. It’s totally up to how you define success.
The kind of rigidity shown by the reader pretty much guarantees a difficult path for whatever he/she tries to achieve.
George
@Allison
Agreed, there certainly isn’t an age limit!
Thanks for your input,
Matt
@Matt
If it wasn’t whatever you could make of it, nobody would do it.
Matt
My definition of an entrepreneur…
Someone who finds a way to monetize their passion…dominate a market with fantastic marketing and builds the systems needed to support the infrastructure that has been built…which fosters continual and consistent daily, monthly and yearly top line cashflow, while spending less than you make with the goal of turning a profit.
@Scott
Putting an exclamation point on that definition…thanks for sharing.
Matt
@Tumblemoose
I tend to agree with you there, it’s limiting oneself by the rigidity of the definition. Not the way I choose to look at it, that’s for sure.
Matt
There should be no question if and when to use this word. Just as meanings differentiate amongst each other, -so should words of deep contemplation. There… DwelUponThis!
Good Fast Reading – Keep it up.
new visitor.
My 2 cents. entrepreneurial spirit is not measured by the million dollar mark. It’s measured by spirit and enthusiasm. Sitting at your computer in your underwear doesn’t make you an entrepreneur, It’s about substance and what you have to bring to the table.
@Gerald
Agreed. I think when you put parameters around what it takes to be an entrepreneur you loose the “spirit” part of the equation.
As always I appreciate your input.
Matt
Maybe the million dollar mark of success should have another term other than entrepreneur? I think an entrepreneur is a self-employed individual who makes a living at whatever business he or she chooses.
I agree with everyone! As a Virtual Assistant, I work from home, BUT I have that entrepreneurial spirit and drive as much as the million dollar entrepreneur….and maybe even more so!
@Eydie,
I’m actually looking for a VA. Maybe you can get in tcontact with me.
Matt,
You are absolutely right. Entrepreneur and success often go hand in hand but failing doesn’t mean that individual was never an entrepreneur. It takes a special kind of person to take on serious risk for the sake of pursuing something they’re passionate about.
Great post and I hate to break it to your reader but I think he/she is confused and unable to distinguish the difference between success/accomplishments and one’s willingness to take on risk for the sake of an original idea.
@Dee
$1 million is certainly successful, don’t think anyone would argue with that…but I think your definition more closely alighns with what it means to be an entrepreneur. Whether you make a million or a buck, if you’re in biz for yourself you’re an entrepreneur in my book!
Appreciate your thoughts,
Matt
@Eydie
Exactly the point. How can I say in good concious that you are not an entrepreneur, or less of one than our “offended” reader? We’re all at different places with our businesses, but we all took the risk to start one and stick with it. That’s an entrepreneur in my book.
Thanks for coming by,
Matt
@Ryan
You make a great point. Many, if not all, entrepreneurs failed at some point. Edison invented and tried to market concrete furniture and houses for crying out loud, and I don’t think anyone would take the title of entrepreneur away from him.
http://www.americaslibrary.gov/cgi-bin/page.cgi/aa/edison/fail_1
Matt
Entrepreneurship is also linked to intrapreneurship, which is the entrepreneurial mindset being linked to someone working for others.
For me, entrepreneurship is not about whether you are having or running the business but rather, the mindset to brainstorm for new ideas to do things (products, strategies, services, etc.) as well as the courage to bring them to life.
Someone who takes an idea, finds a market for that idea, creates something (good or service) and finds a way to monetize that something.
Hey Matt,
I think this is one of the best posts on your blog!
I tend to agree with you and Webster. I think a fundamental element of the definition is “assumes the risks”. Starting a business (and committing to it) is a risk, and few people are willing to take that risk.
I can’t say exactly what an entrepreneur is… I just know one when I see one.
Well, I’m not sure if my comment is really adding to this conversation, but again, the key is “willing to assume the risk!” Who raises the capital and how much they make is not the issue!
~ Steve, aka trade show display booths
@Steve
Hey Steve, as somebody who’s been an active contributor here for quite a while I really appreciate that! I think you’ve read everything here, and that means something.
Thanks,
Matt
Well, I am with you on everything you said on this post though I won’t question Webster’s definition either. We have to keep in mind that one of the characteristics of language is that it is dynamic – it changes constantly. And I must add, language or definition of terms is adjusted based on how people define or use them, and not the other way around. I mean, it is language that adjusts to us, and not us who adjusts to it. We don’t have to be rigid or limit ourselves on using the word ‘entrepreneur’ because surely, the time will come when dictionaries will change its definition based on how we use it in our communications.