What is an Entrepreneur?

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In 1978, when I graduated from college and decided to go into business, I was not called an "entrepreneur." The word was not being used. I was mostly called "nuts" (the word "loser" wasn't being used yet either). The most common line I heard was, "You're going to waste your degree?" People went into business for themselves because they had no other choices; a degree gave you choices. This was about the same time that Inc. magazine was launched.

Thirty years later, people now call themselves entrepreneurs in the same
manner that one would call themselves a doctor, a lawyer, or an accountant. The difference is you need a degree for those other professions. Which raises the question, What is an entrepreneur? Is it someone who starts a business? Is it someone who risks a lot? What if this person takes over his or her family's business? Does that make someone an entrepreneur? What if the person never makes any money? Is he or she still an entrepreneur? A failed entrepreneur?

Because entrepreneurship requires no degree, licensing, or accreditation, I feel strongly, as an entrepreneur, that there is a difference between a business person and an entrepreneur. There are many great business people around. I'm not taking anything away from them. But what they do is just different. As a matter of fact, if you look up the definition of entrepreneur, you'll find it's French in origin and means: A person who organizes, operates, and assumes the risk for a business venture.

Risk. It's not all about risk, but that's a critical part. If there were no risk,
many more people would start businesses. It's not necessarily a badge of honor, but it is a qualifier. What I've learned is the perspective is different. I've been in many business groups, some with business people, some with entrepreneurs. The difference between the two is their perspective on things. In some cases, it's a different skill set. Recognizing the difference has proved valuable to me in looking at other people's businesses. In some cases, the non-entrepreneur has taken bad risks because he or she doesn't know what it is like to go broke or even that it could happen. In other cases, there have been missed opportunities because the non-entrepreneur can't accept the risks.

Getting fired for making a bad decision is not the same as losing your
house. I've found fear to be a great motivator. Fear is our friend.