Entrepreneur (and an Entrepreneurial Organization) Defined

Entrepreneurship is first and foremost a mindset.

Entrepreneur is a person who habitually creates an innovates to build something of recognized value around perceived opportunities.¹

In this definition, all words are key words:

• 'Entrepreneur' - can be an individual entrepreneur, but also an entrepreneurial team or even entrepreneurial organization

• 'A person' - emphasizes a personality rather than a system

• 'Habitually' - just cannot stop being an entrepreneur

• 'Creates' - starts from scratch and brings into being something that was not there before

• 'Innovates' - able to overcome obstacles that would stop most people; turns problems into opportunities; deliver - sees ideas through to final application

• 'Builds something' - describes the output of the creation and innovation process

• 'Of recognized value' - encompasses economic, commercial, social, or aesthetic value

• 'Perceived opportunities' - spotting the opportunity to exploit an idea that may or may not be original to the entrepreneur; seeing something other miss or only see in retrospect¹

What Entrepreneurs Are Like¹

1. Personality factors

   • born/made ratio - 50/50, a synergy of genetic and environmental influence

   • motivation and emotion - independence, competitive spirit, challenge, wealth

   • behavioral characteristics - perseverance, determination, orientation to clear goals, need to achieve, opportunity orientation, creativity, persistent problem-solving, risk-taking, integrity, honesty, internal locus on control

   • personality attributes - extroversion/introversion; sensation/intuition; thinking/feeling; and judging/perceiving

2. Environmental factors

   • family background - entrepreneurial heritage

   • age and education - begin entrepreneurial activity early; are not over-educated

   • work experience - most entrepreneurs first gain some work experience in the line of business they later start up

3. Action factors

   • making the difference - initiate change and enjoy it

   • creating and innovating - a continuous activity, seeing creative idea through to the end, and then starting climbing another mountain

   • exploiting opportunities - able to see or craft opportunities that other people miss

   • finding resources and competencies - experts at exploiting contacts and sources

   • networking - expertise oriented; know when they need experts and how to use them effectively

   • facing adversity - resolve problems under pressure; turn problems into opportunities

   • managing risk - not adventurers, but manageable risk takers; their success lies in caution, learning, flexibility and change during implementation

   • controlling the business - paying attention to details and essential ratios; exercising strategic control over their business

   • putting the customer first - listening to the customer and responding to the customers' feedback

   • creating capital - financial, social, and aesthetic