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What is the definition of a money making entrepreneur?

Photo by Brooke Cagle on Unsplash

Whatever your reason for starting your own business there is a point when you must understand how to define entrepreneurship, so you can change your life and personal circumstances.

What is an entrepreneur?

Even if we can’t find the perfect descriptive words, you probably have an idea of how to define entrepreneurship and what that means to you..

You might use examples of well-known Entrepreneurial companies or celebrities. All known for starting businesses, making lives of others better or becoming wealthy by providing products or services to a number of customers.

Your description probably involves a product or a service and selling that product or a service. This can be expressed in two parts:

  1. The use of resources to provide a product or service to meet the problems or needs of a customer (i.e. person, group of people or business).

  2. The produced product or service can be sold at a price that is above the cost of the resources (i.e. time, money, materials, people, etc) used to create or provide the product or service.

What is an even more fundamental definition of entrepreneurship?

Entrepreneurship is the process of creating a solution to solve a problem. The solution will require resources and may or may not provide a financial benefit.

Community and not-for-profit projects are designed to make lives easier and provide a shared benefit within a community. This is still classed as an entrepreneurial project.

Entrepreneurs see problems and find resources to develop a creative solution to that problem. Whether the problem requires a never seen before solution or a slight change or enhancement of an existing product or service. Either approach is defined as entrepreneurship when the benefit is provided to customers.

What are some other common areas of entrepreneurship?

Although the standard definitions of entrepreneurship focus on the delivery of something to a customer they tend to ignore the main problem solving nature of entrepreneurial activities. If someone does not have a problem or have a real need for the product or service, there can be no entrepreneur.

You will need to provide something that someone actually wants or needs. Otherwise, all of your planning and all of your work will be wasted.

Entrepreneurship is a constant process that relies on problem solving

When you understand the true definition of entrepreneurship it will help you make different choices and focus on different goals. This should help you succeed over the long-term.

If you’re only motivated by money and not providing value, it might be difficult for you to see the true problems of your customers.

However, if you want to solve the problems and concerns of your customers, this will open up areas for you to improve your product or service. This will also help you to stand out from the crowd.

Successful entrepreneurs require problems and provide solutions

Every business idea requires problems to exist and without finding a business idea for a problem that’s needed to overcome there will not be a business.

If you’re concerned with the problems of customers across your preferred industry or niche this means you will have to identify the problems or solutions of your target customers.

Often direct communication is the best option for understanding the needs of your customers. This means you need to get close to your customers, which will make you more connected with the entrepreneurship fundamentals.

Why become an entrepreneur?

You may have hopes and dreams. Maybe you want more of a challenge, more money, provide a better life for your family, more control over your life or spend more time with your family.

However, whatever your reason may be, there will be a leap of faith you must make as an entrepreneur when you move from idea to creation and product or service development to providing a solution to meet your customer problems.

As an entrepreneur and small business owner, you must use your resources wisely to reduce any risk you may place on yourself or your family.

Before you take the plunge, try to be certain your business idea will not damage your personal life. Otherwise, it’s not wise for you to start your business idea if you will damage your home, life or family.

It’s sometimes true that risk is rewarded, but you must ensure you only make calculated decisions, so you can balance any potential risks.

Some final thoughts on defining entrepreneurs and entrepreneurship

Many people throughout history have provided you with products and services, which help you live your life or make your everyday life easier. Such as, sanitation, clean running water, clothing, mobile phones, refrigeration, central heating, cars, seat belts, etc.

Without entrepreneurs and enterprising companies you would not have your everyday essentials and some of life’s comforts.

Entrepreneurship is a requirement and a constant process that relies on solving the problems of others, as a means to solve their own problems. To solve the problems for a selection or a group of society requires entrepreneurs to treat their businesses or side projects as their baby.

Helping your entrepreneurial baby grow and develop into a mature business, which can exist on its own and thrive.

Most importantly, learn to cultivate a balanced attitude to risk when starting your new business or side project. Therefore, if things do not work out the first time, you can try and try again until you become an entrepreneurial success.

Good luck!

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